Tilray Brands' Q1 Financials Show Major Improvement Over Previous Quarter

Tilray Brands, Inc. (TLRY), reported financial results for the first quarter, fiscal 2023, ended August 31, 2022 on Friday.

Q1 Financial Highlights

The results below compare results with the previous quarter and are presented in USD.

  • Net Revenue: decreased 9.5% to $153.2M
    • Cannabis Business: increased 10.0% to $58,570M
      • Medical: declined 10.0% to $6,520M
      • Recreational: increased 24.5% to $58,355M
      • Wholesale: increased 178% to $392M
    • Distribution Business: declined 0.9% to $60,585M
    • Alcohol Beverage Business: declined 9.1% to $20,654M
    • Wellness Business: declined 17.2% to $13,402M
  • Gross Profit: increased to $48.6M from $(6,733)M
  • SG&A Expenses: decreased 19.3% to $41,179M
  • Adj. EBITDA: increased 17.4% to $13.5M
  • Net Loss: declined 85.6% to $(65.8)M
  • Net Loss/Share: declined 85.6% to $(0.13)

Management Commentary of Operational Highlights

Irwin D. Simon, Tilray’s Chairman, and Chief Executive Officer, stated:

  •  “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.
    • 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.
    • We have also optimized our performance through an ambitious and expanded cost savings across the platform.
      • 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.”

Stock Performance

Tilray's stock price declined 26.2% during Q1 (June, July and August), declined another 17.9% in September and, as of this past Friday, has declined 54.9% YTD.

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