In the first quarter of fiscal year 2024, Tilray Brands Inc., a global cannabis-lifestyle and consumer packaged goods company, reported a record net revenue with significant growth in domestic and international markets. The acquisition of craft beer and beverage brands further solidifies its position as one of the most prominent players in the consumer goods industry.
Financial Highlights for Q1 2024
- Record net revenue of $177 million, representing a 15% YoY growth
- Market share in Canadian cannabis market grows to 13.4%
- Canadian cannabis revenue increased by 16.5%
- International cannabis revenue saw a substantial growth of 37%
- 8 craft beer and beverage brands recently acquired
In the first quarter of fiscal year 2024, Tilray Brands achieved several financial milestones that bode well for future growth. Its net revenue increased by 15% to reach $177 million compared to the same period last year while also increasing its market share in Canada’s competitive cannabis market to 13.4%.
Apart from domestic growth, Tilray reported impressive international sales figures, with Canadian cannabis revenue growing by 16.5% and, even more significantly, international cannabis revenue growing by 37%.
The recent acquisition of eight craft beer and beverage brands enabled Tilray Brands to emerge as the fifth-largest player in the U.S.
With a focus on investing in product innovation, expanded distribution, and cost savings through synergy realization strategies, the company envisions potentially targeting a multi-billion-dollar valuation in the coming years.
$TLRY Reports Q1 2024 Financial Results.
— Tilray Brands (@tilray) October 4, 2023
Tilray Brands’ Core Sectors- Medical and Adult-use Cannabis, Beverages, Wellness Products, and Medical Distribution
As part of its long-term growth strategy, Tilray Brands aims to maintain a diverse portfolio focused on various sectors, including medical and adult-use cannabis businesses, beverages, wellness products, and medical distribution services. The company’s primary focus has been product innovation and expanding its distribution network, keeping visionaries like HEXO Corp., Truss Beverage Co., and other global operations as examples of success.
Gross Margin and Adjusted Gross Margin
Regarding financial performance for Q1 2024, the gross margin was at 25%, while the adjusted gross margin slightly declined from 32% to 28%. However, the company witnessed encouraging results from the sales figures for its core business verticals:
- Cannabis net revenue increased by 20%, reaching $70 million
- Beverage alcohol net revenue saw a 17% growth, standing at $24 million
- Distribution net revenue showcased a solid 14% increase, accumulating up to $69 million
Global Expansion Through Acquisitions and Partnerships
Aiming to expand its market share across international markets, Tilray Brands has strategically acquired companies such as HEXO Corp. and Truss Beverage Co., positioning itself as a leader in the global cannabis industry. As more countries worldwide continue to legalize medical marijuana – most notably Europe – Tilray is primed to capture emerging markets and secure a dominant position internationally.
Growth in Craft-beverage Brands: Revenue and Adjusted Gross Profit
The acquisition of craft beer and beverage brands played a significant role in Tilray Brands’ strong performance in the first quarter of fiscal year 2024. Revenue and adjusted gross profit from these acquisitions showed remarkable growth, contributing to the firm’s overall success during this period.
Projections for Fiscal Year Ending May 31st, 2024
For the fiscal year ending on May 31st, 2024, Tilray Brands projects an adjusted EBITDA target of $68 million to $78 million, representing an 11% to 27% growth compared to previous projections. Through strategic partnerships, acquisitions, diversified portfolios, and a focus on product innovation, the company is well-positioned to scale new heights as it expands its global footprint in the cannabis lifestyle and consumer packaged goods industry.