TLRY - Earnings call 2 2021 (2024)

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Good morning. My name is Denise, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Aphria Inc. Q2 Quarterly Investors Call. [Operator Instructions]

Ms. begin may you Macgregor, the conference. Tamara

today's Denise. joining us you, the quarter XXXX. Good Carl Simon financial morning, for you second On XX, November thank and ended are to Merton. for Irwin and everyone, results Thank call discuss Inc.'s Aphria

MD&A, of have everyone and Aphria's and www.aphriainc.com. financial have statements website filed financial should on with EDGAR. available now, to the at are By release, the been SEDAR earnings access statements which Investors section The

forward-looking that remember may and please involve begin, the These course are be management we release note Before earnings discussion unknown and management's with in uncertainties, forward-looking our the and statements. call, this during and on text associated such prove actual today to and incorrect, make could in statements risks statements. Please of may known and beliefs risks materially results statements. that for press differ filings from forward-looking which current financial based on expectations issued those uncertainties a and these described

like also are all stated. references otherwise unless you to that figures dollars, Canadian in to financial remind I'd

And the to call now like I'd to Irwin. turn over

year to good our you us much, joining We second today results. Thank appreciate very quarter you everyone. morning, and Tamara, fiscal XXXX discuss

core lifestyle, into results operational a continue took businesses.We for packaged generate geographies, which upon in our and position cannabis growth highest diversification as us a today goods important and strengthening high our which such we future. foundation strategic including be of sustainable to and believe Canada we company. priorities, our the be strength our financial long-term completing global returns, help Across consumer strategic well our advance on of and teams focus will global leading build the as Europe, well The M&A, execute steps to cannabis our leadership demonstrates vision our to

fueled adjusted by we seventh increase prior for second our record representing quarter, reported a earnings adjusted consecutive quarter. best had of $X.X up helped our basis, reported EBITDA share. We positive $XXX.X from quarter. business, also of per adjusted cannabis XX% $X.XX consecutive net income year an seventh or from adjusted million This increase the net of was EBITDA. of EBITDA revenue And on quarter, we an quarterly In million, in the

adult-use market-leading medical start. our remained solid off sales a brands Our cannabis strong, international and to cannabis are

the a sales the position #X XX% Headset's market. half share not XX%. data #X in large licensed boards of Headset data. maintained on for data, as of Ontario provincial top retail reporting first the retail covers encompassing During Canada, a XXXX, Aphria terms Headset retail quarter, its is our approximately in producer of the and of always fiscal of while sales portion, all producer, licensed the per in brands both to Aphria across with of Based market or total Alberta

point October, a to category according is another months OCS the December #X all data reference, for XX.X% X of sales, again Aphria November For and the for with share. XXXX, market LP rolling of

market share. XX% our name Supply, the Good few, in And a with a in flower, same market market #X in to RIFF, vape share; also share were #X category, just LP XX.X% oils, #X is market a brands, a Aphria X-month with Canada. rolling share; period. dried the for with and a #X with OCS in to XX.X% pre-rolled, according XX.X% All in Solei,

EU our dried cannabis GMP first we cannabis to Internationally, completed and Germany. of oil shipments

cannabis GMP Malta for shipment Maltese We also market. our oil of for an EU import received first permit sales the in

presence Pharma, supply into Aphria's In we international expanding agreement with Israel, first of completed and we to our cannabis Poland. shipment a Canndoc, ODI medical executed

increase permits and access our multi-facet to operations. domestic infrastructure to international our our This and cannabis cultivation, large leveraging includes We our medical strength consumers. platform and high-quality for import patients are distribution with medical a

We're continues market, strong. foundation where be and in internationally our very to core Canadian excited grow about to our long-term the potential

a committed by that's people in brands As we changing company our for of leading are to planet. and, and purpose-driven, our better investing saving the lives our people's products, take in and the core values great our course, pride

We production industry-leading of and and for and to product cultivation offerings innovations relevant consumers. create our with facilities, utilize teams, our along all R&D compelling our

did capital gram organically marking At increasingly with quarter our structure we inorganically, strength managing as the time, excellent The costs, per And QX support and of room this to us cash more. to there's enables leader. Aphria of a clear Xth growth our balance sheet even below job same and consecutive our $X. an reduce cost our establishing

there's While we're sustainable know still pleased for a growth we long-term date, success tremendous potential and growth. to with our

our the sales, positive in quarter focused beyond, began as with and generating transformational started over flow XX we we look and We continue to today forefront to will We've profitability pro our will ago, free of flow. Our by journey be we to very cash the and year forma evolve, million, than well a cash next on where more move and the closer a months important, net QX next this industry. different maximizing target we growth we $XX ended X to and CAD of an our the in improved is cash in one, are our where containment. probably And and we free time. as important million ahead of XXX cost business will where stay year

employees for teams to health of want work results their top us. these dedication our our times. I safety priority The thank for to these a deliver hard global remains and and during

shareholder early we volume, midst global companies, both definitive to really ongoing following the and May based or with and of one order in to of the of business getting of April largest agreement create craft the approval independent on a environment, this Tilray entered combine brewers most the strategic done. the SweetWater, at the cannabis XXXX, completed in States to excited largest for of on dynamic operating of I'm revenue. accretive United track based the receipt on Tilray recently, the about We're regulatory In approvals into acquisition close and end

At building strong of internationally transactions. we're on global through scale our X in Aphria, existing operations foundation by strategic Canada the increasing these and our

CEO and with Founder SweetWater, Focusing have ground on his Bensch, on drinks. side-by-side of truly team team, and working our SweetWater Freddy hit the running,

a the innovation, Our craft acquisition for which infrastructure expansion the cannabis as profitable and we with provides beer robust across federal all development and over billion Southeast, distribution market. leverage U.S. platform legalization, products of growth drinks, marketing SweetWater manufacturing is for a in future upon opportunities and and $XXX their well

leading and have with and on-premise and We customers, in drink key U.S. develop distributors, for beer partnerships products distribution to U.S. retailers our strengthening branded products. branded products added the Aphria ability now new

U.S. acquiring us U.S. event brand addition the an to this access accretive happens. and business, scalable and quickly federal to a in In within and the with the enables acquisition when positions strong Aphria infrastructure market a legalization

We're our for in of excited ahead legalization. to cannabis U.S. awareness potential cannabis adult-use build brand federal the brands

year can't craft teams developing for done XXXX. the Our using creative hit the in integrated fiscal and brands. lifestyle have market cannabis to job Aphria products already for beer them wait We a new beverages other tremendous cannabis

millennials, category This a hard also business. the rapid an which demographic new includes seltzer product innovation growing great our most SweetWater's important and product in fueled is H.A.Z.Y., called in recent by being

for company you the to winning a know, Consumers of As what it I U.S. resonate in brands. equity years, know build XX I is CPG with brands. led Brand takes key. many

good Our safe and equity team the selling importance understands products. quality at Aphria of brand

And election at the ready will change believe In the it. near-term likely recent well-positioned we we Aphria, U.S., are for potential a cannabis stronger federal and regulations. for provide in

legalized We legalizing leadership. in based both One strategic anticipated and and be sooner And should under of Gallup in SAFE a medical expect states X provide smart citizen additional are of today. access faster and to on poll. decisions and change made are institutional passage cannabis to and to the recreational investors Americans Act happen partners. new recent more every U.S. XX% Banking the democratic legal has of More the access to favor cannabis.

will producer for last ongoing their of strong and company basis, products, objectives, we combined of some with compelling respective each strongest will on and on flexibility SweetWater by and addition is the most us growth positioning long-term cannabis as believe brand cornerstone Tilray packaged largest basis.On focus gap and vision company our Canadian-licensed Tilray us.To our objectives, by and for compelling advance the for business, its peers, us to growth and strategic be innovation, the on reported value leading networks strategic profitable based and and significant We'll our our of we distribution. combining financial the XX advance believe a be competition. widen Aphria have benefits a revenue leading world-class will we between and continue the addition we Aphria global increase strength and brands, our and and of with financially it Tilray to cannabis Aphria months existing As within on industry the shareholders, in and We vision and will further based facilities. complement Tilray new pending the particularly distribution believe and consumer provide goods we a compelling the the U.S. for will global a SweetWater adult-use the strategy growth ahead new and and sustainable, SweetWater combination be an financial revenue. business our well

company period For next basis any than XX%, XXXX, points the market to share held and producer example, largest combined for Canada would XXX October share in August the by approaching a closest single competitor. licensed of the have higher the

together, Tilray with XX,XXX Europe, pleased have be the XX% in a operations help will position to European Tilray existing brands and market a -- this least to facilities. medical has combined and form a and medical better of we over and leading market better leading recreational to believe strength for that position be medical when throughout strong also innovator. strongest products, cannabis operational the over believe these us cannabis Aphria before to cannabis becomes On over later. potentially flower, of and this dry share establish we're Germany distribution. Tilray's will pharmacies in-country of Europe, unrivaled on and medical benefit assortment to cannabis, and access recent We'll an given market in offering, chain GMP in cannabis we time.In be look in sales based our platform, true X same the medical flexible striving to will the expect production first completion to Pharma's the At CC While including companies have new cultivation and medical X extending EU Europe cannabis robust facility at medical our than we we we're oil, leader time, than one sooner legal a be will us cannabis supply have a of in the ever compelling with wellness Germany.We position facility. better forward cosmetics their CBD basis, standpoint to us happen Portugal,

global in Latin to presence committed the a Latin LP with perspective, America. only today Canadian From physical we are operations America a remain and

craft Harvest a includes mind, CAD leveraging in along well SweetWater's U.S. tremendous team cannabis-branded their mass, food and We leverage partnerships our SweetWater the legalization Sweetwater via strong pioneer our in U.S. us us is global upon and natural, We have federal start the And of in record products beverage, and growth, product wellness products XXX and market. with Manitoba as hemp of the points a addition the of Manitoba distribution beer sales bars our track and a with existing a and over thousands we build offerings. distribution relationships, Harvest CBD retail when U.S. access on national can we well can other and tremendous a represent in outlets. for believe brand, offering distribution as and a the club channels runway Harvest, on-premise This sales the to head these this outlets, to this our scale success.In give grocery million occurs. available service and in food and CBD e-commerce, do as We restaurant with industry. for in sales Tilray's look with existing internationally. U.S., and proven will together Manitoba provide Keep for network. across SweetWater thousands and

be completion pretax of CAD CBG, building X to The both future partnerships. a XXX other XX companies will positive Tilray should business including business business consumer and with within synergies million following in builds beverage leaders, both about as the global the opportunity functional together. and This Aphria's excited We're cost on the also the partnerships, We platform months accretion the also integrate industry transaction. alcohol, first happen strategic that between pharmaceutical, foods on combination for approximately our we look strategic categories. for

share partnerships, network a With for and will financial market Aphria production, the both be profile, brands, Tilray our distribution positioned company attractive strong well returns combined sustainable, shareholders. low increasingly leading cost of and to unique deliver

internationally on growth increasing pleased footprint, environment. to distribution to best-in-class and our are XXXX our first our continue Canada At patients In manufacturing very of summary, operating fiscal the with greater to us for in capitalize amount our and consumers on products. utilizing and of cultivation we year difficult industry-leading opportunities, an with connect build and in strong a brands we enabling with half foundation across Aphria, results

business future U.S. the our the We the rest remain with the Tilray. milestones, tremendous world and of the including excited about the of in and combination completion Canada, in growth

my team transformational to being to our that From worked to our the of business, thank do and Board helping efforts bottom to successful being tirelessly us entire our with and like continuous and the these Directors stay of deals safe, heart, in and there always for has their run journey. I'd

what and I as But lot about do. there's know to the a team, are really a be. said I will we end lot, result a excited

through call take will I to fiscal who you results that, Carl? turn our over will With the now financial for QX. Carl,

results today reference Thank I IFRS Today, our Irwin. release otherwise. to of Good identified during adjusted noted everyone. financial for Please you, to reported the measures a financial unless results, under non-GAAP our financial press call. our reconciliation morning, issued refer will our

revenue highest consecutive represents quarter our business quarter This million cannabis EBITDA increasing $XX.X QX with EBITDA of across our and marked of the adjusted adjusted We from EBITDA $XX.X EBITDA. ever, adjusted our positive our for adjusted and our adult medical adult-use markets. we in million. quarter, the seventh gross of use And reported consecutive maintained cannabis. for brand both strength seventh quarter record

continues helping at to quarter. Our in cost industry-leading keep team to great cash our cultivation us this coming job, do below $X, a $X.XX

balance end of cash our Company, with of $XXX of forma strategic structure only acquisition but the strength to complete SweetWater the capital sheet million. The quarter Brewing not and pro enabled us accretive also

offering, As Irwin with reach discussed, consumer SweetWater our product further diversifies loyalty and our consumers. broadens enhances

BMO, a end In providing within million of credit quarter. financing of facility we USD days our SweetWater, of conjunction and with a closed few XX million million in our XXX debt acquisition a USD XXX the second revolving with USD after term

by were At guarantee term and closing, cash corporate improved pricing SweetWater's we of The efforts based our than leverage. in by cash flow matrix rate at drew we position on debt of our Euribor the the successful plus term a to interest fully on our loan closer facility. our improve assets million and the position $XX Aphria. free quarter as moved The credit facility to from free bears positive more And generating target flow. is secured the SweetWater

to maintain continues leadership cannabis results, industry. its the With Aphria these position within

our significant in internationally. pursuing and and future growth diversifying Canada are opportunities further business for We

results to is today, on ability our prioritize global initiatives well the emphasis of direct into only financial Our consistent result profitability, a Aphria's but future. generate for that not team's

normalized we As Israel. shipped product second are from quarter, first first to their and impact medical and CC in Malta in business prior see Irwin In our we after to for quarter. the our in to Canndoc GMP-certified mentioned, sales to during we at experiencing return Germany distribution cannabis COVID-XX completed the Pharma the a shipment EU of quarter, an pleased levels

supply little remain teams as impact the operations supply manage marketplace our evolves. COVID-XX. a of chain quarter, resilient the of experienced At our and best our as chain the result to cannabis end Our agile and

an our impact restaurants minimal to visits, may which depending hospitals, clinics, on global though they the the or challenges continue COVID-XX, offices, in-person to mind, revenue regulations impact Keep in future. be retail portions whether our reliant pandemic, experience of chain in and cannabis the have we related even experienced supply business pharmacies, the stores, from restrictions upon bars, on local adverse doctor cannabis to

day-to-day with our XX. on to disruption COVID supply partners chain prevent sort team of associated a closely chain supply minimize and with any work to continues Our basis

for from worked were purchased any Pharma after In United impacts watching closely Kingdom in CC inventory Brexit suppliers preparing closely we quarter Brexit. the to with of Brexit. addition, minimize and and additional alternative proactively end advance

increased price need other selling result programs quarter is a quarter to essentially our patients. X.X% assist the negatively to to The selling year programs. cannabis offered Moving detail. the retail revenue Net Net a mix. to due average quarter revenue from medical cannabis in market medical who a the $X.XX, was retail the the cannabis decline in X% in decrease to X.X% gross increased the quarter, and impacted financial results products to more from for the from while average from been an increase year in was price promotional of QX $XX.X million. million selling XX% in specific XX% prior on to average prior increase gross price despite prior increase to price gross revenue from revenue COVID-XX This all XX% or adult-use or by the in flat prior primarily patients have in of adult-use sales $XXX.X based

of are to Irwin volumes first As mentioned, particularly Europe cannabis pleased million revenue our we international we with year our and met selling in Canndoc. started as $X.X cannabis

on for in revenue nearly of days fluctuation X volume And revenue owning us the in in to anticipate at very Canndoc business contributed Given international the year. we quarter, our based in adjusted a quarter. SweetWater that attractive cannabis only million remainder over gross first $X the sold our we year margin the XX% the

quarter, the a significant pre-rolleds an to quarter, in unable to period experienced experienced missed demand going triple forward. the demand meet for the end in end address beginning when the over of extremely the time an at in better Alberta, were supply. we -- demand worked our increase particularly that we opportunity, short at we to the we of To daily during quarter, of increase by the capabilities us positioning of supply Finally,

due demand, to Adjusted in some taken $XX.X $X inventory to gross We below was unabsorbed decrease million that was at $XX.X decreased cannabis gross inventory cost. million better in of profit in $X.X to match million and in QX. compared liquidated profit to result overhead levels compared XX.X% as a Adjusted in approximately the of adjusted our gross supply QX resulting One of XX.X% including on cannabis gross margin gross capacity. was The below cannabis in cost, primarily to actions QX. Aphria to we approximately QX facility production reduce and million reduced incurred sale, and liquidated older our loss a operating margin

consecutive Our remained $X to gram down to quarter, per cash Xth for X% cost produce the $X.XX. below

cost per in all-in Our decreased QX. to $X.XX gram X%

to The CC distribution distribution gross increase the profit in in $XX profit Pharma Adjusted adjusted distribution an increase was a in the million gross quarter revenue prior for in of at result second million quarter. was $XX.X compared Germany.

During of XX.X%. sales was our at mix decreased margin decrease Pharma. on a the XX.X% CC product function to in margin the quarter, The gross distribution adjusted from gross

$XX.X largely driven of to with transaction in prior in $XX.X increased million in Operating quarter quarter. share-based Aphria's increase from expenses share in the $XX.X increase by our increased the million costs quarter prior M&A activities associated the due quarter from to primarily the was compensation, price. The the million and

compensation, reported noncash price, share transaction share. by adjusted $X.X increase in driven of we income financial basis, our the by impacts QX the price $X.XX driven in for an net on million or per the of instruments increase share-based our On costs, share and excluding losses

our positive consistently stated, we remains As on generating EBITDA. focus

by of adjusted $X.X $XX.X an that adjusted positive $X.X EBITDA of us EBITDA million. adjusted EBITDA. managing $XX.X operations increases $X.X from consistent EBITDA achieved record million focus increased consecutive pleased and $X.X from million, quarter for and million. cannabis of million. are QX our Most were EBITDA revenue the in adjusted million EBITDA businesses alcohol quarter from We This represents quarter, adjusted increasing increased of distribution for adjusted adjusted beverage EBITDA partially and under our operations loss EBITDA includes our notably, structure. seventh our to of cannabis a development cost Consolidated operations adjusted offset from by positive on and from XX% results business driving These the

of at cash the liquidity forma From perspective, had to the a company the to of continue quarter, international planned pro $XXX fund end million growth.

report on quarter, free quarter. cash our to the recording flow million compared that in free We million million loss a while CapEx spending resulted This improvement cultivation in facility. $XX.X over free efforts accomplished to flow prior are concentrated extremely a an cash $XX cash in of the completing flow of in of a the pleased on loss was German $XX.X our basis,

continue to reporting continue Similar subject internationally. in free when to in believe balance QX, cash in we by flow support to the Canada capital with quarterly We cash all restrictions strong operate. initiatives million. intensity the combined And markets over free where the working of flow and be position both our will we existing flow, of sheet, our in growth operations to this lower and operating we positive $X succeeding by our COVID-XX cash QX, current provided positive cash work to requirements, work quarter cash to or

continues we we growing including: efforts. cannabis production portfolio; pandemic, global and help with to SweetWater; more cannabis U.S. In in cash leading high-quality, of financial our Aphria our ability as believe on of as revenues; our reaching this stream industry continue based variety SweetWater's consumers brand well and patients position positive from industry-leading diversified addition our with set others as profitability; will cultivation us in our succeed quarters navigate focus brands our in return strong metrics, We through record our leverage priorities highest the apart believe products. brands through and the and COVID-XX to adjusted our EBITDA; to the on a Canadian of revenue summary, our itself consecutive cannabis our of

for better highlighted Canada, America growth before in and detail, than development. Aphria positioned ever Europe the U.S., and Latin is Irwin in continued As

the Europe, with proven strategic future We are to ready and in initiatives. a execute growth for on legalization potential our team cannabis U.S. global

Since acquisition for particularly SweetWater, collaboratively synergies execute on we strategic are fiscal the XXXX. revenue year initiatives, closing and to of working key

we With complementary the addition are of creating cannabis platform. SweetWater, branded a product lifestyle

strong of model to revenues, they and this cash net adjusted from grew We combined long-term EBITDA flow income for well forward of good our are and look headwinds operating in our SweetWater, generated confident performance acquisition value to our scalable solid while acquisition a will financial as support cash our drive as COVID-XX. flow enhance profitability, free our to long-term Prior leveraging growth and in generate revenue, enhance structure shareholders. enhancing margin spite

the believe financial I items. continue Irwin Since a compelling attractive business spend couple combination a items and on of reviewed wanted we shareholders, why a moments few to reasons for and is Aphria some key addressing Tilray to housekeeping

place our diligently existing on Canadian rules, convert U.S. report Aphria company It to combined to will the is in registration goal that a be will U.S. team on of listing, GAAP Composite under combined to their TSX post S&P/TSX under First, combined Tilray the entity closing. will addition accounting we its The be working maintain reporting so understand to results Index. which at our that finance NASDAQ working the entity is dual-listed maintaining GAAP. means the

We maintain year-end fiscal in also combined will May. company Aphria's anticipate current the

any filing for we business our FAQ questions specific anticipate to in and reference Tilray further mid-March. Aphria combination review, related Importantly, circular, a subject the we SEC transaction, to are shareholders [ website. mailing ] on available working our to on Please joint which,

team, the part amount identifying our and As [indiscernible], operational transaction a which finance synergies of transaction. time quantifying included considerable potential representation, of our from and spent

transaction, $XXX these we will achievement over pretax expect of going have a billion company. As to its months part and the to Upon apply transaction. shareholders, which combined we would been of incremental million that the EBITDA, $X benefit value of incremental forward were company synergies capable XX XX achievement, we're we multiple it and of to identified, incremental synergies this to that our $X.X the believe, imply shareholders the announcement announced within billion combined XXx deliver accretion a to you to if value of of of

From be partners us combined scale time announcement, this Aphria's and leverage would better CBG additional world. the be our entry allows largest strength us an will more the U.S., company financial production a cannabis company and in in Canada. the to appealing into important of The to footprint perspective, makes sales existing part the of provides at potential the

Looking ahead to second become XXXX stronger, even half fiscal and we expect the diversified of Aphria, more an company. for profitable to

with We operate. local global where communities will we continuously work and

have to our for value sustainable shareholder tremendous in long-term ability to create We confidence years come. many

prepared I available Denise. our concludes This remarks. and you, questions. Irwin Back to are now for analyst

from question one Just me.

like just on to So so to Canada it I continues business. perform actually excellently, looks wanted focus the international

Tilray. more And with the focus of so international sales much of taking become off in the quarter. addition obviously This segment a will

maybe hoping up appear Germany, dynamics really with through to at a the is just competitive regards you bit Europe international competition because more, and could like was the in does talk ramping I particularly So pricing moment. it

to wanted get some So that, I thoughts please. just around

level. We're there. not Germany seeing out I'll Owen, that. a today on Pricing balanced competitive be pricing remained take has So in

from and our won being Aphria, think tenders to standpoint able with at be there, facility a I of we can very from with a have ship facility, the our we low Leamington product competitive. cost

competitive then And allow us in is anybody Pharma. I because else mean, thing and other Portugal can be then Europe, as of which ship as anywhere very CC on, ultimately, positioned some. well to will we with we The are coming

we've far, quite at have But there pricing market Canada. about from so we CBD not medical the standpoint, seen So a European products. that seen potentially I'm from recreational other products excited a the somewhat in competitive legalization our --

just I was only hoping weighed on cost but remains below gross sequentially levels picked relative sales touch quarter, inventory that levels. elevated on given historical the your modestly up the to at to in margin, your

any So color would be around that helpful.

pre-rolleds, it stores So those million to so X built $X built a basically, for demand biggest went for distribution, listen, for built into up which our we're quarters half I the we built for inventory think, Aphria, up up as back go up sales. hit levels of product up of selling quarter, products. again, as demand, the new million, lot new for our $X and of some a is The opening

other our market But there our look company the stores right opening and More go rationalization inventories us their the here. as inventories. big our the is and growing is things also. our integrating effort we a and help Tilray the we we of through more that. get to hand, Also, at down. inventory liquor And on are will here and as facilities inventories up, is control bigger do how SKU we of at is within balance this one going position look some how our as of to into grow some boards the force And now

something to all I you are focused manage it's tell there's bottom are a because will that and we the lot over you of what drives your when cash there. inventory, So we that happens line

don't want I Carl, anything know to if that? to add you

but targets, you kind second nicely, The up ask know -- revenues formal of COVID, know SweetWater XXXX or business thinking is not business. quarters kind for distribution How about how right want to bar $XX.X business cautioned snapped I giving about the you the half. relative about any the of that X of thinking but the ago? you are you're number? to I so million revenue kind I us back cited it is level this you're think about

also, then how is, anymore do the And we've is final share the an seen -- there opportunity well, first with we the sorry, And some wholesale question is thinking kind market agreements should share. to as -- of where Tilray? market guess some ceded quarter you've I or be this

the market getting with that? see Or into position So capabilities back you over kind share Tilray a the of do half, perhaps back the gaining you acquisition to do yourself need portfolio? with the full current of

There's lot all. Carl. there. a few, of and take Hopefully, a questions can Well, let I'll I I'll remember then them

Ontario is, to delivery. to the -- it's on-premise of has regards by down. we a Ontario's and down But closed here regards closed thing now. lot curbed know listen, is SweetWater, right In big in

to cannabis On the going at more buy and home, retail people curbside. that consume at up more consumers beer home, other or more and at more they're pick stay it we'll as and they and hand, they're consume because

us that how in see I products continue uniqueness I big the But build the out take dealing and we to and So brand is thing our with we have think share. that.

and inventories, before talked I lose where a where our too, inventories heard lot about and are me talk You their part, a products right and just liquor and control sells what the doesn't. because it, think smarter, balancing as the looking didn't out boards have the what getting we inventories inventories. share, about there at did and Carl we And big by some is right

products. the not things visibility, So remember listen, But to data, it's in X they're having the of consumers want if store, products. got buy that a one not going And from having better them. a big to and lot having they're here, years, our you it the getting we're

more back at rationalizations go through it. But how the product. We In tremendous we've planned we quarters and we giving regards other more and guidance, it's quarters biggest there, half, as out half, wanting opening going but some a to the And biggest We're listen, our SKU around maneuver demand. more COVID see X X whole look stores thing. out and more up. it's is We to do there. and for not provinces we see it's next our see

Europe heard is, thing about heard he of our about that me Brendan me GMP-certified, Israel, built talk talk was out Poland, heard things, ship the you EU regards asset-light going to one and other to me you The an us about to demand. operation. you product for The when we're opportunity -- in Tilray, the Canadian talk

And if a your So I I missed that do and there we're on want if that lot our over and of don't was big part into that.Carl, Aphria Andrew, executing all questions? facilities. of to of of is Or I already don't bring it, know Tilray anything? any lot missed a you know, I opportunity a savings, add cost the to grow

going it's closes. back to of focus want I the a because be international of once to opportunities jump to merger the more kind So

in the of about insurance to I Germany, slow you seen the So growth pricing past kind wanted because about of there talked quarters. specifically from down talk market landscape. on we've the overall the market X kind the guys But data the

your about sense you the patients about like you thinking and of increasing market CC online pharmacy help of your that you are terms the going country So the market? of come have initiatives the Portugal to in and in doctors, cultivation kind I how you the any and from get it have how to distribution educating how German of getting have consumers there. But own facility? overall evolves might demand in to terms Tilray's you're have more lift Because overall Pharma want and sort as

some happening and good are medical that So have And things to I a to now, Tilray some of and our and which we're And program #X very universities is Tilray the strong doctors. in say, other be of already, doctors. building we with, that's get going Europe there's And very, doctors, the coming medical Europe, working looking and with a important a online how has And big educate there see platform. questions. the together out in that. of in potentially we how schools platform with part the there in to whole Aphria of can't to investing what's get oils. as in working But to right research in

a tell that I regards leg CC in we got have thing major drugstores big you, through to up the Pharma. other And to XX,XXX distribution to

now got right Hopefully, get because we we COVID, is a though answers… in online. to can't place even -- tied so medical. we're right as that the our And them to plan of now have get a There plan, hands

an my about guess, said selling that perspective. months more time, recently, U.S. Klein, be to from question he to in change interview with in is expects I course, Irwin, he BNN the about his the would a X things outlook Bloomberg of how David regulatory given X U.S. in

how has and and in much Manitoba you, of Harvest. for a not that disadvantage stakes related know Growth that contingent contingent SweetWater its company, of is course, that Acreage I Given have those the And and TerrAscend, Canopy stakes? having -- you

Again, question. or And it In attractive partners. related more [indiscernible] a referenced you is that, X-part Canopy times brand? call, companies you a compared a much to [ to disadvantage not a of an for to having ] of Constellation few strategic being Growth CBG or the Cronos backing how the or

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much very And today. this you you very thank everybody, call for much, Denise. on getting Thank

at earn Lots changes. to a being XXXX, a a to In got Aphria, good couple regards makes. stay always continuously mean we #X do, #X. got of of a What not year. you been difference XXXX, it. years you and in does has lot And to

at green, because we continuously continuously growing. a never to change. actually to got it, and you're and I grow. ripe You saying, rot. ripe, got ourself can evolve work when you're you're you to we have got And you let When

year, I very, Tilray will next would so year, say both this the together, industry. companies Aphria look you at very if we'll and different and time, be this

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now, everybody for in Aphria Aphria, SweetWater you your the to as very come we thank in support. together. want believing believing Tilray and for I Thank and much

So you the happy safe new talking next year, and be to forward X out look to in I months. Bye-bye. there,

concludes conference call. today's This

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