Released on October 4, 2023, Tilray Brands Inc (TLRY, Financial) announced its Q1 2024 financial results, showcasing a record net revenue of $177 million. This represents a 15% growth year over year (YoY), driven by strategic diversification and acquisitions.
Financial Performance Highlights
Net revenue for the first quarter increased by 15% to $177 million compared to $153 million in the prior year quarter. The gross profit was $44 million, while the adjusted gross profit was $49 million. The gross margin was 25%, while the adjusted gross margin declined to 28% from 32% in the prior year quarter.
Cannabis net revenue increased by 20% to $70 million in the first quarter compared to $59 million in the prior year quarter. Beverage alcohol net revenue increased by 17% to $24 million in the first quarter from $21 million in the prior year quarter. Distribution net revenue increased by 14% to $69 million in the first quarter compared to $61 million in the prior year quarter.
The net loss narrowed to $56 million in the first quarter compared to a net loss of $66 million in the prior year quarter. Adjusted EBITDA was $11.4 million in the first quarter compared to $13.5 million in the prior year quarter.
Strategic Acquisitions and Market Position
Tilray Brands Inc (TLRY, Financial) has strategically diversified its company globally over the past several years. As a result, Tilray is now ideally positioned to capture a wide range of opportunities across multiple industries driving value through organic and acquisitive revenue growth, operating efficiencies, and improved margins and profitability. Since the beginning of FY 2024, Tilray has closed on three transactions: HEXO Corp. in June, Truss Beverage Co. in August, and the acquisition of eight beer and beverage brands from Anheuser-Busch earlier this week.
Looking Forward
For its fiscal year ending May 31, 2024, the Company is reiterating its adjusted EBITDA target of $68 million to $78 million representing growth of 11% to 27% as compared to fiscal year 2023. In addition, the Company expects to generate positive adjusted free cash flow.
With its diverse business model and strategic acquisitions, Tilray Brands Inc (TLRY, Financial) continues to solidify its position as a leading global cannabis-lifestyle and consumer packaged goods company.
