Tilray's Beer Business Now Brings In $101.5 Million A Quarter While Cannabis Sales Fall To $56.1 Million
Tilray reported a $40.0 million first-quarter net loss on higher sales and reaffirmed its $68 million to $75 million adjusted EBITDA forecast.
Tilray Brands reported first-quarter net revenue of $257.1 million, up 23% from $209.5 million a year earlier, but the growth came from beer and distribution while cannabis shrank. The company posted a net loss of $40.0 million, or $0.32 per share, which it said was driven predominantly by non-cash charges, in an 8-K filed Thursday.
What the results show
Gross profit rose 35% to $77.5 million from $57.5 million, and gross margin, the share of each sales dollar left after production costs, widened to 30% from 27%, according to the company's press release.
Beverage revenue rose 82% to $101.5 million from $55.7 million, which the company tied to the BrewDog acquisition. Beverage gross margin was 41%, versus 38% a year earlier.
Cannabis revenue fell to $56.1 million from $64.5 million. Cannabis gross profit slipped to $22.0 million from $23.3 million, though its margin widened to 39% from 36%.
Distribution revenue rose 14% to $84.3 million from $74.0 million, at an unchanged 11% gross margin. Wellness revenue was $15.3 million, consistent with the prior year, and its margin narrowed to 29% from 32%.
Profit measures and the balance sheet
Adjusted EBITDA, a profit measure that strips out items such as stock pay and restructuring, was $9.2 million versus $10.2 million a year earlier. The company said the latest figure was burdened by about $1.7 million of global fuel surcharges. Adjusted net loss was $3.0 million, or $0.02 per share.
Cash, restricted cash and marketable securities stood at $221.4 million at quarter end. The company said that gives it room to invest in growth and integration, and that it cut total debt by $42 million so far this fiscal year.
The company reaffirmed its forecast for adjusted EBITDA of $68 million to $75 million for the fiscal year ending May 31, 2027. It said results typically lean toward the second half, strengthening significantly in the fourth quarter.
What management said and what to watch
Chairman and CEO Irwin D. Simon said: "We are no longer dependent on a single market or regulatory catalyst." He also said Carlsberg will begin producing and selling its brands in the U.S. through Tilray starting January 1, 2027.
Tilray hosted a webcast on the results at 8:30 a.m. ET Thursday. The stock closed at $3.71 on Wednesday, down 1.72% (market data).
The January 1, 2027 start of Carlsberg's U.S. production and sales through Tilray is the next dated event the company has named.
Sources
- 8-K Filing — Tilray Brands, Inc. (TLRY) — SEC EDGAR
- Exhibit exh_991.htm — Tilray Brands, Inc. 8-K exhibit — SEC EDGAR
