Tilray Brands Reports 30% Revenue Growth

By Bobby Samwell • Tuesday, April 09 15:20 • Permanent Link

Tilray Brands, Inc. has reported its financial results for the third quarter ended February 29, 2024, demonstrating significant growth and operational achievements compared to the prior year quarter.

Net revenue for the quarter was $188.3 million, marking a robust growth of approximately 30% over the prior year quarter's $145.6 million. Furthermore, the company achieved a gross profit of $49.4 million, with adjusted gross profit increasing by 17% to $51.6 million. The gross margin was reported at 26%, and the adjusted gross margin was 27%.

In terms of business segments, the beverage-alcohol net revenue saw a remarkable increase of 165% to $54.7 million from $20.6 million in the prior year quarter. However, the gross margin for beverage-alcohol decreased to 34% from 48% in the prior year quarter due to the addition of acquired craft brands, which currently have lower margins than the historical business.

Cannabis net revenue also experienced significant growth, increasing by 33% to $63.4 million in the third quarter compared to $47.5 million in the prior year quarter. The company's cannabis gross profit increased to $20.9 million from $(32.8) million in the prior year quarter, with an adjusted gross profit of $21.1 million.

Notably, Tilray Brands reduced its outstanding convertible debt by $50.7 million compared to the second quarter and a further $41.9 million subsequent to the end of the third quarter. The company also improved its net cash used in operating activities to $(15.4) million in the third quarter compared to $(18.6) million in the prior year quarter.

The company's net loss decreased to $105.0 million in the third quarter compared to a net loss of $1.2 billion in the prior year quarter, with net loss per share narrowing to ($0.12) compared to ($1.90) in the prior year quarter. Adjusted EBITDA was reported at $10.2 million in the third quarter compared to $13.3 million in the prior year quarter.

Tilray Brands' strategic growth actions during the third quarter included expansions and launches across its business segments, highlighting efforts to strengthen its market position and drive revenue growth.

The market has reacted to these announcements by moving the company's shares -21.4% to a price of $2.04. For the full picture, make sure to review Tilray Brands's 8-K report.

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