Tilray Brands, Inc. TLRY

MMs want you to Sell what their Buying & vice-versa

[Savage97]

During Q2, we generated record net revenue for Tilray Brands of $194 million, we grew our Canadian net revenue by 31% , with approximately 12.5% market share in adult-use cannabis. This is 570 basis points ahead of the next LP. Tilray leads Canadian adult-use cannabis sales and is number one in Ontario, Quebec and British Columbia, which represents approximately 60% of the Canadian population on a combined basis. During Q2, we grew our international cannabis net revenue by 55%, and are the market leader in medical cannabis across Europe, with leading shares in Germany and Poland and other countries in which we participate. Beverage alcohol revenue in Q2 was $46.5 million, representing a 117% growth year-over-year, and we're only getting started in ramping up this segment. By segment, cannabis net revenue rose 35% in total, with international cannabis up 55% and Canadian cannabis up 31%, despite $3.6 million of price compression in Canada.During Q2, we renegotiated a supply agreement between Aphria Inc., a wholly-owned subsidiary, and Aphria Diamond, a non-wholly-owned subsidiary, that is expected to result in $33 million annually in additional income being allocated to Tilray shareholders as opposed to the non-controlling interests. We also significantly reduced our convertible debt by $127 million in the quarter, an additional $18 million after the quarter, and plan to further reduce our indebtedness, optimizing our capital structure and enhancing our financial flexibility. Having now completed half of our fiscal year, we are reiterating our fiscal '24 guidance of adjusted EBITDA between $68 million and $78 million.  beer business was up 10% in this quarter, where traditional beer businesses have been down or flat.

Irwin Simon: So, we’re seeing some good organic growth from our beer business. We’re seeing good organic growth from our cannabis business. You saw what happened in Europe. You saw what happened in our Canadian market, and that’s even with price compression.  I see a big opportunity in the beverage category for us in the Canadian market and the edibles. And listen, with our infrastructure in Canada and now having a facility in Belleville and London, it doesn’t stop us from going into the beverage business, the beer business, the craft beer businesses or other businesses in Canada to offset some of our costs of our infrastructure to diversify like we’ve done in the U.S. So, we’re committed to the Canadian market, and we think there’s a lot of opportunities there. At the end of the quarter, we had close to $260 million of cash. Our debt, bank debt and our subordinate debt is basically little less than $500 million and we’re working off the ’24. So, I view us as generating cash, investing back in our businesses. And you got to remember this here, Tamy, as we go into the back half and get more and more cost savings out of this business and generating more and more cash in our alcohol spirits business, our international business, it helps us to reinvest back in our business. So, I come back and see us being in a pretty good place. And then internationally, we like the bev alcohol business internationally. There is some stuff that we’ve looked at there. And how do we expand some of our medical business in our international market, and there’s markets where we could do an acquisition or two. So, we’re looking at strategic. They got to be accretive. They got to be good value there for us and how do we integrate it into our current infrastructure. If you come back and look with the Tilray-Aphria acquisition, we took out over $100 million of cost. With the HEXO business, we’ll take out close to $35 million of cost. With Truss and our beverage business, we will take out additional costs there. If you come back and look at the ABI, SweetWater, Montauk, we will take a good amount of cost out of there. In Europe, again, we’re the largest medical cannabis company in Europe with a 55% growth, which we see lots of opportunities in different countries.

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