Tilray Brands Reports $210.95 Million Revenue with Increased Losses in Latest Quarter

Tilray Brands, Inc. reported a net revenue of $210.95 million for the quarter ending November 30, 2024, marking an increase of 9% from $193.77 million in the same period last year. For the first half of the fiscal year, the company achieved a total revenue of $410.99 million, up 11% from $370.72 million in the prior year. Despite the revenue growth, Tilray experienced a net loss of $85.28 million for the quarter, compared to a loss of $46.18 million in the previous year, reflecting an 85% increase in losses. The company attributed the increased losses to higher operating expenses, which rose by 16% to $103.44 million, driven largely by costs associated with recent acquisitions and restructuring efforts.

The company has made significant strategic moves, including the acquisition of a portfolio of craft beverage brands from Molson Coors Beverage Company, effective September 1, 2024. This acquisition is part of Tilray's broader strategy to enhance its beverage segment, which saw revenue growth of 36% year-over-year, reaching $63.08 million for the quarter. Additionally, the company has focused on SKU rationalization as part of its Project 420 initiative, which aims to streamline its product offerings and improve profitability. However, this rationalization has also led to a temporary reduction in revenue as the company phases out slower-growing products.

Operationally, Tilray's cannabis segment reported a slight decline in revenue, with net cannabis revenue of $65.65 million for the quarter, down 2% from $67.11 million in the previous year. The decrease was attributed to a focus on maintaining higher average selling prices amid price compression in the adult-use market. The company continues to lead the Canadian cannabis market, although its market share dipped from 9.8% to 9.4% during the quarter. In contrast, international cannabis revenue increased by 25% to $14.87 million, driven by growth in Germany and Poland.

Tilray's total assets decreased to $4.19 billion as of November 30, 2024, down from $4.22 billion at the end of the previous fiscal year. The company reported cash and cash equivalents of $189.70 million, a decline from $228.34 million, while marketable securities increased to $62.55 million. The company’s employee headcount has also grown, reflecting its expansion efforts, particularly in the beverage segment. Looking ahead, Tilray remains focused on integrating its recent acquisitions and optimizing its operations to drive future growth, while also navigating the complexities of the cannabis market and regulatory landscape.