General presentation of Tilray:
We now invite you to learn a little more about the Tilray company and its economic environment. We will present to you in detail this company and its sources of income with its main activities and the various products which it markets as well as the markets on which it exercises.
The Tilray Inc group is a Canadian company specialized in the pharmaceutical sector and which more specifically offers cannabis-based products to pharmaceutical distributors. As such, the Tilray company carries out medical research on cannabis, cultivation of cannabis, and further processing and marketing of cannabis products worldwide.
Tilray also has a subsidiary called FHF Holdings Ltd which manufactures, markets and distributes consumer hemp products. Among the products in this company's portfolio are hemp heart, hemp oil, hemp granola, hemp protein powder and hemp milk. The company also markets cannabis to patients in certain countries around the world through subsidiaries located in Australia, Canada and Germany. The group's medical cannabis is produced in Canada and Europe. To date, the Tilray group employs nearly 1,646 people.
Regarding the distribution of turnover by type of product, we find at the top the sale of pure cannabis with 49.6% of turnover, the sale of hemp products for 35.8% of turnover, the sale of extracts cannabis for 14.5% of turnover and the sale of accessories and other products for 0.2% of turnover.
Finally, with regard to the geographic distribution of the group's revenues, we note that 78% comes from Canada, 14.1% from the United States and 7.9% from the rest of the world.
Know the competition of the Tilray share:
We now offer you a better understanding of the sector of activity in which the Tilray Inc group operates, namely, the sector of production and sale of medical cannabis or cannabis-based products. There are indeed several large companies also specialized in this type of activity and which are direct competitors of Tilray. The classification of these companies by turnover is as follows:
- Canopy Growth: is a leading Canadian company in this sector.
- Aurora Cannabis: is also a Canadian company and number two in the market.
- Aphria: comes in fourth position in this ranking.
- OrganiGram: is the fifth largest cannabis company in the world.
- CannTrust Holdings: comes in sixth position in the ranking.
- Cronos: Finally, the Cronos group, also Canadian, is the seventh largest in this sector in the world.
The strategic alliances set up by the Tilray group:
Of course, the Tilray group does not only have enemies on the market and can also count on certain strategic partnerships that allow it to maintain or grow its activity over time. These partnerships are of the utmost importance as they are often followed by investors as strong buy signals. Here are just a few recent examples:
- AB InBev: In 2019, the Tilray group announced a strategic partnership with the Belgian-Brazilian group AB InBev which is notably the operator of the beer brands Budweiser, Stella Artois or Corona in the context of research on non-alcoholic beverages with cannabis. As part of this partnership, each of these two companies invested $ 50 million in order to develop a product for the Canadian market alone as a first step.
- Alef Biotechnology Spa: It is a former partner of Tilray which was finally acquired in 2019 by this Canadian group. This company specializes in import and distribution. This acquisition has enabled Tilray to strengthen its positioning among the leaders in medical cannabis worldwide.
- Natura Naturals: Again, this is more of a strategic acquisition than a real partnership since Natura Naturals was acquired by Tilray in 2018. Following this transaction and the finalization of this agreement which took place 12 months after this announcement, Tilray has paid for the purchase of this subsidiary which will allow it to significantly reduce its production costs by benefiting from a supplier which is directly attached. This initiative has in fact increased Tilray's production capacities and ensured it some growth in light of the growing demand from Canadian consumers and industry.