Why Tilray Could End Up Going on an Acquisition Spree
Cannabis producer Tilray (NASDAQ: TLRY) released its year-end numbers last month, and they confirmed one thing: The company has a lot of work to do in reaching its sky-high projections for fiscal 2024. If the company wants to hit its goal of $4 billion in annual sales two years from now, its top line would have to jump to more than six times what it posted this past fiscal year ($628 million). That leads to only one logical conclusion: Tilray will need to be incredibly active on the mergers and acquisition front if it hopes to get anywhere near that goal.
For the fiscal year ended May 31, sales rose by just 22%. Without factoring in the effect of foreign exchange, that percentage jumped to 29%. Either way, that growth rate remains insufficient for a company that has been making incredibly bullish forecasts.
And in the Canadian market, things have been going from bad to worse for Tilray. Part of Tilray's goal in reaching $4 billion involves dominating the Canadian pot market. Its goal is to hit a market share of at least 30%. That seemed like a pipe dream when the company first announced those plans, back when its market share was about 16%.
Source Fool.com
