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Tilray Brands Reports Q1 Cannabis Revenue Increase of 9% QoQ and Narrows Net Loss

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Tilray Brands, the leading Canadian cannabis company, has released its financial results for the first quarter of the fiscal year 2024, which ended on August 31, 2023. The company is recognized as the most diversified global cannabis-lifestyle and consumer packaged goods (CPG) company in the world. Its four business segments include medical and adult-use cannabis, beverages (including craft beer, spirits, ready-to-drink mixed cocktails, non-alcoholic drinks, THC and CBD beverages), wellness products, and medical distribution. The company’s CEO, Irwin D. Simon, highlighted the balance achieved through its diversified business model and emphasized Tilray Brands’ position as the top Canadian cannabis LP, the leader in medical cannabis across Europe, a major player in the hemp foods industry, and a strong contender in the fast-growing craft beverage-alcohol industry.

Q1 Financial Highlights

  • Net revenue for the first quarter increased by 15% to $177 million compared to $153 million in the same quarter of the previous year. However, there was a slight sequential drop from $184 million.

  • Cannabis net revenue in the first quarter rose by 20% to $70 million compared to $59 million in the same quarter of the previous year, and $64 million in the previous quarter. On a constant currency basis, net cannabis revenue was $71 million, representing a 22% increase from the previous year quarter.

  • Gross profit for the quarter was $44 million, lower than the $67 million recorded in the previous quarter. The adjusted gross profit was $49 million, compared to $68 million in the previous quarter.

  • The gross margin for the first quarter stood at 25%, while the adjusted gross margin declined from 32% in the previous year quarter to 28%.

  • The net loss for the first quarter narrowed to $56 million from $66 million in the previous year quarter and $120 million in the previous quarter.

  • Adjusted EBITDA in the first quarter was $11.4 million compared to $13.5 million in the previous year quarter. The improvement in adjusted EBITDA was mainly due to the inclusion of HEXO advisory fee revenue in the previous year.

  • Operating cash flow for the first quarter improved to $(16) million compared to $(46) million in the previous year quarter, representing a $30 million improvement.

Simon also mentioned three recent transactions that have further strengthened Tilray Brands’ position in the market. The acquisitions of HEXO Corp. and Truss Beverage Co. have enhanced the company’s competitive cannabis positioning in Canada, the largest federally legalized cannabis market worldwide, by increasing its market share. Additionally, the acquisition of eight beer and beverage brands from Anheuser-Busch has propelled Tilray Brands to the fifth position in the U.S. craft beer brewing industry, from its previous ninth position.

The positive financial results have had a notable impact on the company’s stock price. Tilray shares traded 2.23% higher at $2.29 per share during Wednesday’s pre-market session.

Photo: Courtesy of Tim Foster via Unsplash

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