Tilray Brands, Inc. (TLRY), reported financial results for the second quarter, fiscal 2023, ended November 30, 2022 on Monday.

Q2 Financial Highlights

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

• Net Revenue: decreased 5.9% to $144.1M
  • Cannabis Business: declined 14.8% to $49.9M
    • 34% of Net Revenue; Adj. Gross Margin: 37% 
      • Recreational: declined 10.3% to $52.4M
      • Medical: declined 1.6% to $6.4M
      • Wholesale: declined 50% to $0.2M
  • Distribution Business: declined 0.7% to $60.2M
    • 42% of Net Revenue; Adj. Gross Margin: 13%
  • Alcohol Beverage Business: increased 8.1% to $21.4M
    • 15% of Net Revenue; Adj. Gross Margin: 52%
  • Wellness Business: increased 27.3% to $12.6M
    • 9% of Net Revenue; Adj. Gross Margin: 31%
• Adj. Gross Profit: decreased 17.1% to $41.2M
• SG&A Expenses: increased 9.3% to $60.1M
• Adj. EBITDA: decreased 13.3% to $11.7M
• Net Income (Loss): increased 25.1% to $(73.3)M
• Net Income (Loss) per Share: declined 15.4% to $(0.11)
• Cash on Hand: $433.5M 

Management Commentary

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

• “...We are close to achieving our increased annualized cost savings target of $130 million, consistent with our commitment to building a lean, efficient, and dynamic business that will realize tangible and immediate benefits as the market improves.
• Tilray Brands’ re-positioning as a global diversified portfolio of brands will drive our ability to seize top-line opportunities across geographies and business lines.
  • • In the U.S., this includes investing in, acquiring or building compelling and profitable lifestyle CPG brands across craft beverage-alcohol and wellness consumer products that are cannabis adjacent, resonate powerfully with consumers, and are strongly positioned in key markets.
    • In Canada, we will be patient and strategic in building our competitive positioning amid the price compression and difficult operating conditions that we expect will, inevitably, consolidate the oversupply of licensed producers.
    • In Europe, we believe that we are extremely well-positioned overall in a cannabis market.
  • These efforts will be supported and enhanced by one of the strongest balance sheets in the industry with close to $433.5 million in cash and marketable securities on-hand.”

Stock Performance

Tilray's stock price declined 14.9% during Q2 (September, October, November), declined another 31.0% in December but, as of this past Friday, was up 10.5%.

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