Tilray Brands shares fell Wednesday after the company reported a wider-than-expected quarterly loss and margin pressure within its beverage segment, a core pillar of its global diversification strategy.

Shares trading in Toronto were recently 4.1% lower at 5.44 Canadian dollars ($3.57).

The cannabis company late Tuesday reported a fourth-quarter loss of $37.9 million, compared with a loss of $1.27 billion a year earlier, which on a per-share basis was a loss of 43 cents compared with $13.01. Tilray said the declines were largely due to noncash charges in the quarter.

Analysts had expected the loss to be narrower at 1 cent a share, according to FactSet.

Net revenue increased 25% to $281.7 million, beating the $246.3 million expected by analysts. Beverage net revenue rose to $105.6 million from $65.6 million, while cannabis segment revenue rose 5% to $71.5 million.

Tilray company has been betting on alcohol and beverages to diversify from its historic cannabis business. in March, Tilray acquired the global brand rights and key assets of Scottish craft brewer BrewDog for about 33 million pounds, at the time, equivalent to $43.6 million, expanding its beverage business.

In the quarter, beverage gross margin was 38%, unchanged from a year earlier, but has fallen for the year to 36% compared with 39% a year earlier.