(AOF) – Tilray has reduced its annual objectives. The Canadian cannabis producer listed on Wall Street published for its third fiscal quarter, ended at the end of February, a net loss of 104.98 million dollars, or 12 cents per share, compared to a loss of 1.195 billion dollars, or 1 $.90, a year ago. Wall Street expected a loss of just 5 cents per share. Revenue rose 30% to $188 million versus a consensus of $198.3 million. Sales of cannabis jumped by 33% and those of alcoholic beverages by 165%.
Revenues from distribution, however, fell 13% to $56.8 million.
For its fiscal year ending May 31, 2024, the company is now targeting adjusted EBITDA of between $60 million and $63 million compared to $68 million to $78 million previously. Additionally, the company no longer expects to generate positive adjusted free cash flow, due to a delay in the cash collection schedule on several asset sales.
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Oncology, priority of pharmaceutical giants
Sanofi’s stock market disappointment recorded at the end of October 2023 underlines the new direction for the group, which has now set oncology as its number 1 priority. Efforts in this segment, where therapies are advancing the fastest, notably involve investments in R&D which weigh on profitability. Sanofi therefore announced a drop in its earnings per share in 2024 and the abandonment of its objective of an operating margin of 32% in 2025. Merck has just unveiled a new alliance. It will pay up to $22 billion to the Japanese group Daiichi Sankyo as part of a partnership on experimental cancer treatments. While some experts estimate that the United States represents nearly half of global oncology spending (drugs and treatments), or $196 billion in 2022, Chinese spending in this area has more than doubled in five years, going from 5 to 11.8 billion dollars.