Canadian marijuana giant Tilray Brands, Inc. (NASDAQ:TLRY) (TSX:TLRY) reported Friday financial results for the first fiscal quarter ended August 31, 2022, with net revenue of $153.2 million, which compares to revenue of $168.02 million for the same period last year.
“Tilray Brands’ top and bottom-line results during the first quarter reflect successful realignment of the business to maximize revenue and market share gains across core business segments and geographies,” Irwin D. Simon, Tilray’s chairman and chief executive officer, stated. “Most notably, we are now the leader in net cannabis revenue worldwide, highlighted by medical cannabis leadership globally and adult-use cannabis market share primacy in Canada. These achievements affirm that, amid market disruption and macroeconomic challenges, we have leveraged our scale, marketing acumen and CPG expertise to deliver strong – and sustainable – top line growth.”
First Quarter Highlights
-
Net loss was $65.8 million or 13 cents per share, versus net loss of $34.6 million or $0.08 in the first quarter of 2021.
-
Adjusted EBITDA of $13.5 million, marking the 14th consecutive quarter of positive adjusted EBITDA and second highest achieved in the company’s history. In the coressponding period of 2021, adjusted EBITDA was a gain of $12.7 million.
-
Gross profits was $48.6 million, compared to $50.96 million in the same period of 2021.
-
Achieved $108 million in annualized cash cost-savings since the closing of the Tilray – Aphria transaction in May 2021, up from $85 million as of May 31, 2022.
-
International cannabis revenue was $10.4 million.
-
Maintained #1 position in Canada with 8.5% cannabis market share, driven by Tilray’s comprehensive portfolio of adult-use brands.
“We have also optimized our performance through an ambitious and expanded cost savings across the platform,” Simon added. “Through the end of the first quarter, we have realized $95 million of our revised and increased $100 million goal of annualized cost savings. In addition, we realized an additional $13 million of cost savings from our recently launched $30 million cost optimization plan for our existing cannabis business. In aggregate, we expect to remove $130 million of costs from the business. We also plan to realize an additional $40 million in revenue and interest payments from the strategic HEXO transaction. These initiatives, combined with our market share and revenue gains, should position Tilray Brands extraordinarily well for the future, allowing us to reconfirm our guidance of $70 - $80 million of adjusted EBITDA and be free cash flow positive.”
Price Action
Tilray Brand’s closed Thursday market session 30% higher, driven by the historic industry news of President Biden giving pardons for all federal marijuana possession convictions.
During the Friday pre-market session Tilray shares traded 3.08% higher at $4.02 per share.
Related News
Tilray Medical Relaunches Cannabis Oral Solution Across Ireland With Reimbursement Approval
Tilray's SweetWater Brewing Company Unveils New Fall Craft-Beer Lineup
Photo: Benzinga Edit; Source: Pixabay
