Tilray Q2 Revenue Declines 7% YoY To $144.1M, What About Adjusted EBITDA?

Tilray Brands, Inc. TLRY TLRY, released financial results for the Q2 2023, revealing net revenue of $144.1 million, a 7% decrease compared to $155.2 million in the Q2 2022.

Q2 2023 Financial Highlights

• Gross profit rose to $40.1 million, a 22% increase, year over year. Adjusted gross margin held at 29% compared to the year ago quarter.

• Beverage-alcohol sales increased 56% to $21.4 million, over the prior year quarter, including revenue from acquisitions

• Achieved $119.6 million in annualized cash cost-savings since the closing of the Tilray-Aphria transaction in May 2021, up from $108 million as of August 31, 2022.

• Adjusted EBITDA of $11.7 million, a 15% decrease compared to $13.8 million in the Q2 2022. 15th consecutive quarter of positive adjusted EBITDA.

• Net loss was $61.6 million compared to net income of $5.8 million in the Q2 2022.

Irwin D. Simon, Tilray Brands’ chairman and CEO, stated, “During the second quarter, Tilray Brands took decisive, effective actions to manage operating cash flow and focus the business on accretive acquisitions and a path to long term profitability. And we have certainly done so – even amid an evolving retail environment - by removing costs and driving efficiencies across the platform in supply chain, procurement, packaging, and labor. We are close to achieving our increased annualized cost savings target of $130 million, consistent with our commitment to building a lean, efficient, and dynamic business that will realize tangible and immediate benefits as the market improves.”

Simon continued, “Tilray Brands’ re-positioning as a global diversified portfolio of brands will drive our ability to seize top-line opportunities across geographies and business lines. In the U.S., this includes investing in, acquiring or building compelling and profitable lifestyle CPG brands across craft beverage-alcohol and wellness consumer products that are cannabis adjacent, resonate powerfully with consumers, and are strongly positioned in key markets. In Europe, we believe that we are extremely well-positioned overall in a cannabis market. And, in Canada, we will be patient and strategic in building our competitive positioning amid the price compression and difficult operating conditions that we expect will, inevitably, consolidate the oversupply of licensed producers. These efforts will be supported and enhanced by one of the strongest balance sheets in the industry with close to $433.5 million in cash and marketable securities on-hand.”

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