Tilray Brands Inc (TLRY) Q1 2025 Earnings Call Highlights: Record Revenue Growth and Strategic ...

GuruFocus News
4 min read

In This Article:

  • Net Revenue: $200 million, a 13% growth year over year.

  • Gross Profit: Increased by 35% to $59.7 million.

  • Gross Margin: Increased by over 500 basis points to 30%.

  • Net Loss: Improved by 38% to $34.7 million.

  • Adjusted Net Loss: $6.1 million, a 78% improvement year over year.

  • Adjusted EBITDA: $9.3 million, compared to $10.7 million in the prior-year quarter.

  • Cash Flow Used in Operations: $35.3 million.

  • Beverage Alcohol Net Revenue: $56 million, up 132% from the prior year.

  • Cannabis Net Revenue: $61.2 million, a 13% decrease from the prior year.

  • Distribution Net Revenue: $68.1 million, compared to $69.2 million in the prior-year quarter.

  • Wellness Net Revenue: Grew 11% to $14.8 million.

  • Cash and Marketable Securities: $280.1 million as of October 31.

Release Date: October 10, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Tilray Brands Inc (NASDAQ:TLRY) achieved record first-quarter net revenue of $200 million, representing a 13% growth year over year.

  • The company's beverage business, including craft beer and spirits, grew 132% in net revenue year over year.

  • Tilray Brands Inc (NASDAQ:TLRY) strengthened its leadership position as the fifth largest US craft beer brewer with a 5% market share.

  • The company reported a 35% increase in gross profit and a gross margin increase of over 500 basis points compared to the prior-year quarter.

  • Tilray Brands Inc (NASDAQ:TLRY) has a strong financial foundation with ample cash reserves, reduced debt levels, and flexibility to explore potential new acquisitions.

Negative Points

  • The cannabis net revenue decreased by 13% compared to the prior-year period, largely due to price compression and strategic focus on margins.

  • Adjusted EBITDA decreased from the prior-year quarter, primarily due to increased investment in marketing and promotions at Tilray Beverages.

  • Cash flow used in operations was $35.3 million, compared to $15.8 million in the prior-year quarter, indicating increased demand on working capital.

  • The international cannabis revenue decreased by 14%, driven by variability in the timing of import and export permits.

  • The beverage alcohol gross margin decreased to 41% from 53% in the prior-year quarter, reflecting challenges in optimizing production and controlling costs.

Q & A Highlights

Q: Can you provide an update on how volumes are trending in the Canadian adult-use market? A: Irwin Simon, CEO, explained that while there is significant volume in Canada, Tilray is focusing on profitable volume. The company has improved margins and introduced new products, selling over 80 million pre-rolls and 350 metric tonnes of flower annually. Blair MacNeil, President of Tilray Canada, added that the industry is seeing healthy growth, with dollar volume up 4.5% to 5% and category volume growing at 9% to 10%.

Recommended Stories