Tilray Brands Q1 Cannabis Revenue Increases 9% QoQ, Narrows Net Loss

Canadian marijuana giant Tilray Brands TLRY TLRY, reported its financial results on Wednesday for its first quarter of fiscal year 2024 ended August 31, 2023.

“Today, Tilray Brands is the most diversified global cannabis-lifestyle and CPG company in the world with four distinct and complementary business segments – medical and adult-use cannabis, beverages including, craft beer, spirits, ready-to-drink mixed cocktails in a can, non-alcoholic drinks, THC and CBD beverages, wellness products, and medical distribution,” Irwin D. Simon, Tilray Brands’ chairman and CEO stated. “The balance we have brought to our diversified business model has positioned Tilray Brands as the #1 Canadian cannabis LP, the market leader in medical cannabis across Europe, a leader in the hemp foods industry, and a formidable player in the fast-growing craft beverage-alcohol industry with a growing leadership position.”

Q1 Financial Highlights

• Net revenue increased 15% to $177 million in the first quarter compared to $153 million in the prior year quarter. Sequentially, net revenue slightly dropped from $184 million.

• Cannabis net revenue increased 20% to $70 million in the first quarter compared to $59 million in the prior year quarter, and $64 million in the fourth quarter. On a constant currency basis, net cannabis revenue was $71 million in the quarter, up 22% from the prior-year quarter.

• Gross profit was $44 million, compared to $67 million in the previous quarter. Adjusted gross profit was $49 million in the quarter, compared to $68 million in the fourth quarter.

• Gross margin was 25%, while adjusted gross margin declined to 28% from 32% in the prior year quarter.

• Net loss narrowed to $56 million in the first quarter compared to net loss of $66 million in the prior year quarter and net loss of $120 million in the previous quarter.

• Adjusted EBITDA was $11.4 million in the first quarter compared to $13.5 million in the prior year quarter, and adjusted net loss of $32 million. The improvement in adjusted EBITDA was primarily a result of the prior year including HEXO advisory fee revenue.

• Operating cash flow of $(16) million in the first quarter compared to $(46) million in the prior year quarter, representing an improvement of $30 million.

Simon continued, “Since the beginning of our FY 2024, we have closed on three transactions: HEXO Corp. in June, Truss Beverage Co. in August, and the acquisition of eight beer and beverage brands from Anheuser-Busch BUD earlier this week. The HEXO and Truss acquisitions have already boosted our competitive cannabis positioning in Canada, the largest, federally legalized cannabis market in the world, by increasing our leading market share, while the beer and beverage brands acquisition has made us the 5th largest craft beer brewer in the U.S., up from the 9th position.”

Price Action

Tilray shares traded 2.23% higher at $2.29 per share during Wednesday’s pre-market session.

Photo: Courtesy of Tim Foster via Unsplash