Tilray (NASDAQ:TLRY) Brands, Inc. (NASDAQ:TLRY) reported a record first quarter for fiscal 2024, with net revenue of $177 million, marking a 15% year-over-year growth. This aligns with the real-time metrics provided by InvestingPro, which shows a 15.49% revenue growth for the first quarter of 2024. The company saw significant growth in both its cannabis and international businesses, including a 16.5% increase in Canadian cannabis revenue and a 37% increase in international cannabis revenue. The company also discussed its growth strategy and plans for the German market, as well as its focus on the beverage alcohol and wellness segments during an earnings call.
Key takeaways from the call:
- Tilray is the market leader in medical cannabis across Europe and has a strong presence in the hemp food industry.
- The company recently acquired eight craft beer and beverage brands from Anheuser-Busch, solidifying its position as the fifth largest craft beer brewer in the US.
- Tilray's wellness segment is delivering higher gross profits and remains an important element of the company's US strategy.
- The company is well-positioned for future growth opportunities, including potential US federal cannabis legalization and the German legalization of adult-use cannabis.
- The company's beverage alcohol business generated $24.2 million in revenue in Q1, a 17% growth from the previous year. The company projects pro forma revenue for this segment, including recently acquired brands, to be around $300 million.
- In Q1, total net revenue was $177 million, representing a 15% growth from the previous year. Gross profit was $44.2 million, with a gross margin of 25%. Adjusted EBITDA was $11.4 million, down from $13.5 million in the previous year. According to InvestingPro, the company's gross profit for the last twelve months was $147.02 million, which indicates a strong performance in Q1.
- The company's cash and marketable securities balance was $464.9 million as of August 31. The company settled its obligations under a $50 million convertible promissory note and paid in full its Tilray '23 Convertible Note after quarter-end.
During the earnings call, CEO Irwin Simon discussed the company's growth and cost reduction plans, including the launch of a new product, Gummies, and expansion into new states and international markets, particularly in Poland, Germany, and Italy. Simon also highlighted the company's recent acquisitions and its goal of reducing costs by $27 million. He expressed optimism about the cannabis market in Canada and the opportunities in the beverage category.
Simon also discussed the potential opportunities for Tilray in the cannabis industry, highlighting the importance of regulation in ensuring the safety of cannabis products and collecting tax revenue. He acknowledged the challenges of building brands in the Canadian market due to advertising restrictions but expressed confidence in Tilray's strategy and its ability to generate profits.
The CEO of Tilray also highlighted their focus on building brand equity in the Canadian market for their hemp business, Manitoba Harvest, and their strong relationships with doctors and distributors in the European market for their medical business, Tilray Pharma. He emphasized the company's strategy of making money and managing their balance sheet, and expressed confidence in their portfolio and highlighted the potential for growth and the option to sell off assets if needed.
InvestingPro Tips suggest that Tilray operates with a moderate level of debt, which aligns with the CEO's emphasis on managing their balance sheet. Also, despite the company's profitable performance in the first quarter, analysts do not anticipate the company to be profitable this year. This aligns with the real-time metrics from InvestingPro, which shows a negative P/E ratio of -0.95. For more detailed insights and tips, readers might want to consider the InvestingPro product, which includes additional tips and real-time metrics. For more information, visit InvestingPro Pricing.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.