Tilray Brands, Inc. (Nasdaq: TLRY; TSX: TLRY), a global leader in the cannabis-lifestyle and consumer packaged goods sector, recently unveiled its financial outcomes for the third quarter ending February 29, 2024. The company reported a notable net revenue of $188.3 million, marking a significant 30% growth compared to the $145.6 million recorded in the same period last year.
This growth was driven by impressive performances across its business segments, particularly in beverage-alcohol and global cannabis.
The beverage-alcohol sector saw a 165% increase in net revenue, reaching $54.7 million, thanks to the successful integration of new Craft Acquisition brands. Meanwhile, the global cannabis segment reported a 33% increase in net revenue, totaling $63.4 million, buoyed by strategic acquisitions and robust growth in key markets like Canada and Germany.
Despite these gains, the company experienced a net loss of $105.0 million, a significant improvement from the $1.2 billion loss in the prior year’s quarter, but still below expectations.
Tilray’s Performance in Q3: -$0.12 EPS, $188.3M in Revenue, Short of Expectations
When compared to market expectations, Tilray’s performance fell short of the anticipated earnings per share (EPS) of—$0.05 and revenue forecast of $198.44 million for the quarter, reporting an EPS of -$0.12 (miss by $0.07) and revenue of $188.3 million for the quarter.
However, the shortfall in expectations was mitigated by the remarkable year-over-year growth in its core business segments and the substantial reduction in net loss. The beverage-alcohol segment’s revenue surge, attributed to the integration of acquired craft brands, and the global cannabis segment’s growth underscore the company’s strategic expansions and operational efficiencies.
Despite the challenges in meeting the expected figures, Tilray’s efforts in reducing its convertible debt balance and improving its cash flow position demonstrate a strong commitment to financial stability and shareholder value.
Tilray Adjusts Guidance for Fiscal Year Ending May 31, 2024
Tilray has updated its guidance for the fiscal year ending May 31, 2024. The company now projects an Adjusted EBITDA target of $60 million to $63 million, adjusting its outlook due to the delayed timing of cash collections on various asset sales.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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