The head of cannabis-focused consumer packaged goods company Tilray Brands Inc. says he’s “optimistic” about cannabis legalization in the U.S. following next month’s presidential election.
Irwin Simon, Tilray’s chair and CEO, told BNN Bloomberg in a Thursday interview that the company – already a major player in the cannabis industry in markets like Canada and Europe – is ready to expand in the U.S. if regulatory hurdles are cleared.
“Our Canadian cannabis business and our European medical cannabis business is a very important part of our growth and our future, and let’s see what happens in the U.S. after these elections on legalization… I’m pretty optimistic there,” he said.
Simon’s comments came after Tilray reported a loss of US$34.7 million in its first quarter, up from a 55.9 million loss during the same quarter a year ago, as net revenue rose 13 per cent.
Shares in the company came under pressure following the earnings release and were down more than three per cent in afternoon trading in Toronto. The stock is down more than 25 per cent over the past year.
The company, which was once solely a cannabis producer, has diversified its business in recent years, Simon said, and is focused on improving profitability across its brands.
“Tilray has diversified the company tremendously… one of the big things we’re focused on in regard to our cannabis business is absolutely growth, but we want to make money in cannabis,” he said.
“Our gross margins are up tremendously in our Canadian market and we’re pretty excited about the legalization in regard to medical cannabis in Europe.”
Simon said that as it waits for developments on the legalization front in the U.S., Tilray will continue its diversification efforts into business segments such as beer, spirits and non-alcoholic beverages.
In August, the company acquired four breweries from Molson Coors Beverage Co., expanding its reach in the North American craft beer space.
“What we’re looking at is what are the adjacencies out there for all our businesses, and our whole thing in regard to beer is how to make beer fun again,” he said.
“What we’re limited to… in cannabis acquisitions, right now (is) until the U.S. legalizes, we can’t do anything in the U.S. We’re limited to what we can grow in, and right now, we’ve made our bets on the craft beer business.”
Simon added that if and when the U.S. does legalize cannabis, Tilray will be on the hunt for more acquisitions.
“Stay tuned,” he said, “we have a great balance sheet, and there’ll be opportunities out there for us to buy other cannabis businesses in the U.S.”
With files from The Canadian Press