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Bullboard - Stock Discussion Forum Tilray Brands Inc TLRY

Alternate Symbol(s):  T.TLRY

Tilray Brands, Inc. is a global lifestyle and consumer packaged goods company. The Company operates through four segments: Cannabis operations, Distribution business, Beverage alcohol business and Wellness business. The Cannabis operations, which encompasses the production, distribution, sale, co-manufacturing and advisory services of both medical and adult-use cannabis. The Beverage alcohol... see more

NDAQ:TLRY - Post Discussion

Tilray Brands Inc > TLRY Tilray Brands.
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Post by CaneIsAbel on Apr 11, 2024 9:56am

TLRY Tilray Brands.

Cannabis operator Tilray lowers 2024 expectations, eyes Canada tax savings

 

By Solomon Israel

April 9, 2024 - Updated April 10, 2024

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Did you miss the webinar “Women Leaders in Cannabis: Shattering the Grass Ceiling?” Head to MJBiz YouTube to watch it now!

 

Canadian cannabis and beverage alcohol company Tilray Brands has lowered its financial guidance, reducing expectations for investors in its third-quarter earnings announcement.

Tilray’s previous guidance for fiscal year 2024 of $68 million-$78 million in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) “is no longer feasible,” Chief Financial Officer Carl Merton said during a Tuesday earnings call.

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“We have therefore lowered our adjusted EBITDA range to be between $60 (million) and $63 million,” he said.

Merton also said Tilray no longer expects to meet its previous guidance of achieving positive adjusted free cash flow for the full 2024 fiscal year.

Tilray attributed that change “to delayed timing for collecting cash on various asset sales,” according to a news release.

New York- and Leamington, Ontario-based Tilray, which reports its earnings in U.S. dollars, reported a $105 million net loss for the third quarter ended Feb. 29.

Tilray posted net revenue of $188.3 million, up roughly 30% from $145.6 million in revenue during the same quarter in 2023 but down from $194 million in net revenue during the company’s second quarter of 2024.

The company’s quarterly net revenue mix included:

  • $54.7 million from beverage alcohol.
  • $63.4 million from cannabis.
  • $56.8 million from distribution.
  • $13.4 million from wellness.

Tilray executives commented on Canada’s challenging cannabis excise tax structure in advance of next week’s federal budget release after a parliamentary finance committee proposed capping excise taxesat 10% of the value of a marijuana product.

CEO Irwin Simon said Tilray would save $80 million annually if that recommendation were implemented.

Tilray paid $21.8 million in Canadian cannabis excise taxes during the third quarter.

Simon said the company believes “the rescheduling of cannabis from Schedule 1 to Schedule 3 in the United States would provide a path for Tilray to sell pharmaceutical-grade medical cannabis in the U.S., subject to doctor prescriptions.”

“This is a different strategy from what (American marijuana multistate operators) are doing today,” Simon said during his prepared remarks.

Asked to provide further details during a Q&A session with equity analysts, Simon said: “Is there a possibility with (the North American Free Trade Agreement) or with other rules that we can export cannabis from Canada that’s GMP-certified?”

“Today you can export cannabis from Canada to other countries around the world if it’s GMP-certified, so I’m not sure why that wouldn’t be the case in the U.S. if that happens.”

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Tilray operates a medical marijuana-distribution business in Germany, which recently legalized recreational cannabis without creating a full commercial market.

In Germany, Simon said, “new opportunities for Tilray flow mostly from the removal of medical cannabis from the Narcotics Act.”

“This de-schedule change is expected to significantly expand the medical cannabis market in Germany, as it would allow for more doctors to prescribe medical cannabis more easily to patients and potentially allow for broader health insurance coverage.”

Tilray reported $146.3 million in cash and equivalents as of the end of the quarter.

Shares of the company trade as TLRY on the Nasdaq and the Toronto Stock Exchange.

Solomon Israel can be reached at solomon.israel@mjbizdaily.com.

Comment by CaneIsAbel on Apr 11, 2024 9:58am
Rescheduling does help TLRY more so then even MSO's who engage in recreational and many not medical GMP certified. We will be able to import to USA. We also pay our taxes owe nothing 
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