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Tilray Brands, Inc. (TLRY) reported its financial results for the fourth quarter ended May 31st, 2024, yesterday. All financial data is reported in U.S. dollars, unless otherwise indicated and in comparison to the previous quarter. Highlights are as follows:

Q4 Financial Highlights

• Net Revenue: UP 22.3% to $229.9M
  • Cannabis Business: UP 13.4% to $71.9M (net)
    • as a % of Net Revenue: DOWN to 31.3%
      • Canadian Medical: DOWN 1.6% to $4.9M (net)
        • as a % of Cannabis Business: UP to 6.8%
      • Adult-use: DOWN 0.2% to $47.0M (net)
        • as a % of Cannabis Business: UP to 65.4%
      • Wholesale: UP 36.4% to $9.9M (net)
        • as a % of Cannabis Business: UP to 13.8%
      • International: DOWN 9.0% to $10.0M (net)
        • as a % of Cannabis Business: DOWN to 13.9%
  • Beverage Alcohol Business: UP 40.2% to $76.7M
    • As a % of Net Revenue: UP to 33.4%
  • Distribution Business: UP 15.5% to $65.6M
    • As a % of Net Revenue; UP to 28.5%
  • Wellness Business: UP 17.2% to $15.7M
    • As a % of Net Revenue: UP to 6.8%
• Gross Profit: UP 66.8% to $82.4M
  • Gross Profit Margin as a % of Net Revenue: UP to 36% from 26%
    • (Gross Profit Margin is the profit remaining after subtracting the cost of goods sold from revenue. A high gross profit margin indicates that a company is successfully producing profit over and above its costs.)
    • Cannabis Business: UP to 40% from 33%
    • Wellness Business: UP to 31% from 30%
    • Beverage Alcohol Business: UP to 53% from 38%
    • Distribution Business: Up to 12% from 10%
• Selling, General and Admin (SG&A) including Marketing and R&D Expenses: UP 7.7% to $69.8M
  • SG&A as a % of Net Revenue: DOWN to 30.4% from 32.5%
    • (SG&A expenses are the costs a company incurs to run its business, which include salaries, marketing, rent, utilities, and office supplies and the SG&A margin is the percentage of revenue consumed by these expenses and shows how much revenue is being absorbed by overhead costs. In this instance a lower margin reflects how efficiently a company manages its operating expenses.)
• Net Profit (Loss): DOWN from $(105.0)M to $(15.4)M
  • Net Profit (Loss) as a % of Net Revenue: Improved to (6.7)% from (49.2)%
    • (Net profit margin, or simply net margin, measures how much net income or profit a company generates as a percentage of its revenue. The net profit margin illustrates how much of each dollar in revenue collected by a company translates into profit. A higher margin reflects the cash profit generated by the company's operations.)
  • Net Loss/Share: reduced to $(0.04) from $(0.12)
• Adj. EBITDA: UP 189.2% to $29.5M from $10.2M
  • Adj. EBITDA as a % of Net Revenue: UP to 12.8% from 3.4%
    • (Adjusted EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization, represents the cash profit generated by the company's operations excluding non-recurring, irregular, and one-time items such as unrealized gains or losses; non-cash expenses such as depreciation and amortization; litigation expenses; gains or losses on foreign exchange; goodwill impairments; non-operating income; and share-based compensation that may distort the EBITDA. Remember, a higher margin reflects the cash profit generated by the company's operations.)
• Cash/Marketable Securities on Hand: DOWN 13.1% to $226M 

Management Commentary:

Irwin D. Simon, Chairman and CEO, stated:

• “....Tilray Brands is leading the convergence of cannabis, beverages, and wellness...driven by our successful execution of our diversification strategy, which we started in 2020, and the hard work of our team...[and] is poised to continue to disrupt the CPG industry globally.
• In the U.S., Tilray Beverages is the 5th largest craft brewer and Tilray Wellness is the leader in hemp products.
• In Canada, Tilray Cannabis holds the #1 recreational cannabis market share.
• In Europe, Tilray is the market leader in medical cannabis.”

Stock Price

Tilray's stock price is UP 10% as of mid-day July, 30th and is now UP 21.7% MTD but is DOWN 12.2% YTD.

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