Canada's Tilray Brands posted a narrowed loss in its first fiscal quarter on a growing alcohol segment that is becoming a larger part of the business.
The cannabis-lifestyle and consumer-packaged-goods company Thursday reported a net loss of $34.7 million, or 4 cents a share in the three months ended Aug. 31, compared with a loss of $55.9 million, or 10 cents a share, in the same quarter last year.
The net loss per share matched the forecast from analysts polled by FactSet. The company's adjusted loss came in at 1 cent a share.
Net revenue rose to $200 million from $176.9 million, missing analyst forecasts of $218.7 million.
A major contributor to the rise in revenue was from the Leamington, Ontario company's alcohol-beverage segment that more than doubled to $56 million, helped by acquisitions. The segment is becoming a larger part of the business, going from 13% of total revenue a year ago to 27%.
Meanwhile, revenue in what was once its largest segment, the cannabis business, declined to $62.8 million from $70.3 million, and now contributing 31% of total revenue, down from 40%.
Distribution rose slightly to $70.4 million, up from $69.2 million.
Chief Executive Irwin Simon said the next U.S. election could be positive for cannabis policy in the country, and therefore the business, and said he was optimistic about the industry.
"We believe that there is a greater likelihood that the upcoming U.S. Presidential elections will result in improved regulatory changes in the cannabis industry, as both candidates have publicly confirmed their support for further legalization," Simon said.