Tilray's Diversified Growth Strategy Is Paying Off, Here's What's Behind 34% YoY Revenue Increase In Q2

Author: Jelena Martinovic | January 09, 2024 09:54am

Tilray Brands, Inc. (NASDAQ:TLRY) (TSX:TLRY) reported a 34% year-over-year revenue increase Tuesday for the second quarter of fiscal 2024, to $194 million.

"Our Q2 financial results demonstrate the strength of our brands, our global team, and our diversified growth strategy," Irwin D. Simon, chairman and CEO of the Canadian cannabis giant that has been pushing to become one of the top beer and alcohol beverage companies in the U.S as well.

Q2 2024 Financial Highlights

Cannabis net revenue increased 35% year-over-year to $67 million.
Beverage alcohol net revenue increased 117% year-over-year to $47 million.
Distribution net revenue increased to $67 million, compared to $60 million in the prior year's quarter.
Gross profit increased 11% year-over-year to $47 million, while adjusted gross profit increased 18% over the same period to $52 million.
Gross margin was 24% and adjusted gross margin was 27%.
Net loss dropped to $46 million from $62 million net loss in the second quarter of 2023. Net loss per share narrowed to $0.07 compared to $0.11 in the prior year quarter.
Adjusted EBITDA came in positive at $10.1 million compared to a $11 million adjusted EBITDA gain in the prior year's quarter.
Achieved $22 million in annualized run-rate savings, and $14 million in actual cash cost savings, as part of the $30 million synergy plan related to the HEXO acquisition.
Strong financial liquidity position of roughly $261 million, consisting of $143 million in cash, including restricted cash of $1.5 million and $116 million in marketable securities.
Reduced outstanding convertible debt by $127 million compared to the first quarter and a further $18 million after the end of the second quarter.

Tilray's Business Expansion

In the meantime, the company continues to grow its medical cannabis business in Europe and internationally.

Last month, Simon traveled to Israel and Germany as legal cannabis seems to be on the horizon.

"I went to meet with other CEOs of consumer package good companies," Simon told Fox Business in an exclusive interview.

In Germany, where the company's Europe-based business branch Tilray Europe is headquartered, he visited the Parliament to discuss cannabis, as German legalization comes closer to the finish line.

In the U.S., Tilray is looking to enter the market once cannabis is legalized on the federal level. For now, the company is growing its presence within the U.S. craft beverage-alcohol market.

"We have also emerged as a disruptor in the craft beverage-alcohol industry by assembling a portfolio of highly sought-after brands that are dominating key regions across the U.S. in the Northeast, the Pacific Northwest, and the Southeast," Simon said in a press release.

In Canada, the acquisitions of HEXO Corp. and Truss Beverage acquisitions together bolstered Tilray's cannabis presence.

The company recently debuted its new RIFF BOOST beverage collection, featuring two new ready-to-drink THC and CBG-infused drinks from premium cannabis brand, RIFF, as well as its seasonal release from its cannabis wellness brand, Solei.