(Bloomberg) -- Tilray Inc. will be profitable in Canada in the “next quarter or two” and in Europe in the next two to three quarters, according to Chief Executive Officer Brendan Kennedy.
“We'll continue to invest in new regions and new countries, but on an existing basis in terms of our existing footprint, we see profitability within the next half year to year,” Kennedy said in an interview on Bloomberg TV.
The pot producer's stock jumped as much as 8.9% following Kennedy's comments. It had lost 36% over the previous five sessions after Tilray reported a wider-than-expected loss of $17.9 million before interest, taxes, depreciation and amortization.
Kennedy said last week that the industry is still in a growth phase and “you'd be constraining yourself if you were focused on profitability at this point.”
Investors, however, are increasingly rewarding cannabis companies that turn a profit, or at least show a path to profitability, and punishing those that don't. Canopy Growth Corp. fell 14% last Thursday after CEO Mark Zekulin said it won't report a net profit for three to five years.
To contact the reporters on this story: Kristine Owram in Toronto at kowram@bloomberg.net;Ed Hammond in New York at ehammond12@bloomberg.net
To contact the editors responsible for this story: Brad Olesen at bolesen3@bloomberg.net, Divya Balji
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