Shares of Tilray (TLRY) - Get Tilray, Inc. Report rose after the company reported mixed results in its first earnings release since the Canadian cannabis company closed its reverse merger with Aphria last month.
The company reported net income of $33.5 million after posting a loss of $84.3 million a year earlier. Adjusted earnings of 18 cents a share topped estimates that called for a loss of 12 cents a share.
Tilray's net revenue rose 25.3% to $142.2 million. Canadian COVID-19 lockdowns ate into the company's business during the quarter and revenue missed analysts' estimates of $146.2 million.
"In a very short period of time since our business combination was finalized, we transformed and strengthened Tilray, delivered solid results amid continued COVID-19 lockdowns and restrictions and achieved $35 million in synergies to date," said Tilray CEO Irwin Simon.
Tilray shares were up 26% to $16.06 on Wednesday.
The company's gross profit decreased 19% to $22.5 million from $27.8 million a year ago. Included in this quarter's gross profit was a one-time inventory valuation adjusted of $19.9 million resulting from excess inventory quantities following its combination with Aphria.
Free cash flow increased 112% to $3.3 million in fourth quarter from a loss of $28.3 million in the prior year.
Earlier this month, Tilray said its Germany-based subsidiary has completed the first successful harvest of medical cannabis. The company has made a concerted effort to increase its presence in Europe and other foreign countries outside of Canada.