Tilray Brands (TLRY) Q1 Loss Wider, Revenues Increase Y/Y
Tilray Brands, Inc. TLRY reported wider-than-expected loss in first-quarter fiscal 2024, while the top line beat the Zacks Consensus Estimate.
Over the past three months, shares of this current Zacks Rank #3 (Hold) player have increased 41.3% against the industry’s 17.1% drop.
Q1 Highlights
Tilray Brands posted quarterly loss of 10 cents a share, wider than the Zacks Consensus Estimate of a loss of 5 cents per share. However, the company reported a loss of 13 cents per share in the prior-year period.
Total revenues jumped 15% year over year to $177 million and came above the consensus estimate of $175 million. Cannabis net revenues climbed 20% to $70 million, while net cannabis revenues were $71 million in the quarter, up 22% on a constant-currency basis. Beverage alcohol net revenues jumped 17% to $24 million. Distribution net revenues rose 14% to $69 million, while on a constant-currency basis, distribution revenues came in at $67 million, up 11% from the prior- year quarter.
Tilray Brands, Inc. Price, Consensus and EPS Surprise
Tilray Brands, Inc. price-consensus-eps-surprise-chart | Tilray Brands, Inc. Quote
Adjusted gross profit was $49 million in the quarter, while the adjusted gross margin contracted 400 basis points from the prior-year quarter to 28%.
Adjusted EBITDA came in at $11.4 million, down from $13.5 million in the prior-year quarter, mainly owing to the prior-year HEXO advisory fee revenues.
The company achieved $17.1 million in annualized run-rate savings, which are related to the $27 million synergy plan in connection with the HEXO acquisition. It is on track to achieve its integration plan goals and is confident that HEXO will be a successful acquisition. It has accomplished $6.8 million in annualized run-rate savings related to the $8 million cost reduction plan in Europe.
Other Financial Aspects
Tilray Brands ended the reported quarter with cash and cash equivalents of $177.5 million, net accounts receivable of $82.1 million and stockholders’ equity of $3,379.4 million, excluding non-controlling interest of $22.2 million.
Outlook
For the fiscal year ending May 31, 2024, management reiterated adjusted EBITDA of $68-$78 million, indicating growth of 11-27% versus fiscal 2023.
Additionally, the company anticipates generating positive adjusted free cash flow.
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