Tilray Brands - Second Quarter Fiscal 2024 - Jan 09, 2024. Any predictions from Tilray Investors?
Included short summary of
Second Quarter 2022
Second Quarter2023
First Quarter 2024
Financial Highlights – Second Quarter Fiscal 2022
Net income increased to $6 million from a net loss of $89 million in the previous year quarter.
Net revenue increased ~20% to $155 million during the second quarter from $129 million in the prior year quarter.
The increase was driven by 7% growth in cannabis revenue to $58.8 million, net beverage alcohol revenue of $13.7 million from SweetWater, and wellness segment revenue of $13.8 million from Manitoba Harvest.
Adjusted EBITDA of $13.8 million in the second quarter 2022, 8% growth compared to the preceding prior quarter, and the eleventh consecutive quarter of positive Adjusted EBITDA
Gross profit of $32.8 million, a 7% decrease from $35.3 million in the prior year quarter.
Adjusted gross margin in the cannabis segment remained strong at 43%.
Maintained #1 cannabis market share in Canada1 with leading portfolio of comprehensive medical cannabis and adult-use brands, including top position in cannabis flower and pre-rolls.
International medical cannabis market leader and #1 in Germany2 with ~20% market share.
Cost synergies from Aphria-Tilray combination of $70 million achieved on a run-rate basis to date, with actual cash-savings close to $36 million to date. Expect to reach $80 million synergy target, ahead of schedule, by May 31, 2022 and to generate an additional $20 million in synergies in fiscal 2023.
Tilray Brands Reports Second Quarter Fiscal Year 2023 Financial Results
January 9, 2023
Achieved $29.2 Million of Operating Cash Flow and $25.4 Million of Free Cash Flow 15th Consecutive Quarter of Positive Adjusted EBITDA
Maintains Leading Market Share Position in Recreational Cannabis in Canada and Medical Cannabis Across Europe
Net Revenue of $144.1 Million, On a Constant Currency Basis $157.6 million
EPS of -$0.11 and Adjusted EPS of -$0.06
Strategy in Place to Build the World’s Leading and Most Diversified Cannabis Lifestyle Consumer Packaged Goods Company Completes Acquisition of Montauk Brewing Company, #1 Craft Beer in Metro New York
Financial Highlights
Strong financial position with $433.5 million in cash and marketable securities.
Maintained #1 leadership position in Canada with 8.3% cannabis market share.
Beverage-alcohol sales increased 56% to $21.4 million, over the prior year quarter, including revenue from acquisitions.
Gross profit rose to $40.1 million, a 22% increase, year over year. Adjusted gross margin held at 29% compared to the year ago quarter.
Cannabis gross profit increased 37% to $18.6 million from $13.5 million in the prior year quarter, while the gross margin percentage increased to 37% from 23%. This was driven by our success in implementing numerous cost-savings programs, offset in part by our allocated overhead from intentionally reducing production, coupled with the revenue realized from our strategic alliance with HEXO in the current year and in inventory provision in the prior year.
Achieved $119.6 million in annualized cash cost-savings since the closing of the Tilray-Aphria transaction in May 2021, up from $108 million as of August 31, 2022.
Adjusted EBITDA of $11.7 million, marking the 15th consecutive quarter of positive adjusted EBITDA.
Financial Highlights – First Quarter Fiscal Year 2024
- Net revenue increased 15% to $177 million in the first quarter compared to $153 million in the prior year quarter.
- Gross profit was $44 million, while adjusted gross profit was $49 million in the quarter. Gross margin was 25%, while adjusted gross margin declined to 28% from 32% in the prior year quarter.
- Cannabis net revenue increased 20% to $70 million in the first quarter compared to $59 million in the prior year quarter. On a constant currency basis, net cannabis revenue was $71 million in the quarter, up 22% from the prior year quarter.
- Cannabis gross margin decreased to 28% in the quarter from 51% in the prior year quarter and cannabis adjusted gross margin decreased to 35% in the quarter from 51% in the prior year quarter, reflecting the prior year’s inclusion of the HEXO advisory fee revenue and the completion in our first quarter of a wholesale transaction designed to optimize inventory levels and generate $3.1 million of cash.
- Beverage alcohol net revenue increased 17% to $24 million in the first quarter from $21 million in the prior year quarter.
- Beverage alcohol gross margin increased to 53% in the quarter from 47% in the prior year quarter and adjusted gross beverage alcohol margin was 56% in the quarter compared to 53% in the prior quarter, reflecting an increase in beer as a percentage of sales mix along with the positive impact of the Montauk acquisition.
- Distribution net revenue increased 14% to $69 million in the first quarter compared to $61 million in the prior year quarter. On a constant currency basis, distribution revenue was $67 million in the quarter, up 11% from the prior year quarter.
- Distribution gross margin increased to 11% in the quarter from 9% in the prior year quarter, reflecting favorable sales mix and lower production costs.
- Net loss narrowed to $56 million in the first quarter compared to net loss of $66 million in the prior year quarter with a net loss per share of ($0.10) compared to ($0.13).
- Adjusted EBITDA was $11.4 million in the first quarter compared to $13.5 million in the prior year quarter primarily as a result of the prior year including HEXO advisory fee revenue.
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- Achieved $6.8 million in annualized run-rate savings in connection with the $8.0 million cost reduction plan in Europe.
- Strong financial liquidity position of ~$466 million, consisting of $179 million in cash, including restricted cash and $287 million in marketable securities.
- Operating cash flow of $(16) million in the first quarter compared to $(46) million in the prior year quarter, representing an improvement of $30 million.