Tilray's Q1 Revenue Grows 43% To $168M, Achieves 10th Consecutive Quarter Of Positive Adjusted EBITDA

Canadian cannabis giant Tilray, Inc. TLRY TLRY released its financial results Thursday for the first fiscal quarter ended August 31, 2021, with net revenue of $168 million, up by 43% from $117 million in the same period of fiscal 2021.  Reported revenues were below the consensus estimates of $174.93 million.

The New York and Ontario-based company reported that the revenue increase was driven by a 38% improvement in net cannabis revenue to $70 million, net beverage alcohol revenue of $15 million following the SweetWater acquisition and revenue of $15 million from Manitoba Harvest.

Financial Highlights

• Net loss for the period amounted to $34.6 million, which compares to a net loss of $21.7 million in the prior-year quarter;
• Adjusted EBITDA came in positive, reaching $12.7 million, which is 58% higher than in the same quarter of fiscal 2021; this marks the tenth consecutive quarter of positive adjusted EBITDA;
• Gross profit increased 46% to $51 million from $35 million in the prior-year quarter;
• Adjusted gross margin in the cannabis segment has remained strong at 43%;
• Cost-saving synergies of $55 million achieved on a run-rate basis to date, with actual cash-savings close to $20 million; on-track for at least $80 million in cost-savings from Aphria and Tilray business combination synergies.

Two Objectives

“Tilray’s first quarter 2022 results affirm that, amid the paradigm shift towards global cannabis legalization, we are unquestionably executing against two key objectives,” Irwin D. Simon, Tilray’s chairman and CEO stated. “The first is maximizing near-term profitability through leadership in both higher-margin international medical markets and in Canada, complemented by incremental growth at SweetWater and Manitoba Harvest in the U.S. These efforts are augmented by the cost benefits of our increased scale that we are realizing through our integration process. The tangible results include our tenth consecutive quarter of positive adjusted EBITDA and meaningful net revenue growth despite continued impacts from COVID-19 in Canada as retail cannabis stores only began opening in mid-June. The second objective is to fully realize the promise and potential of Tilray by capitalizing on the nearly $200 billion global cannabis market opportunity.”

First Quarter Business Milestones

• On August 19, 2021, Tilray completed the acquisition of amended convertible notes in MedMen MMNFF, a premier retailer in the $80 billion U.S. cannabis market – a potentially transformative step towards Tilray’s objective of leading the U.S. market when legalization allows.
• On August 17, 2021, Tilray launched medical cannabis edibles in Canada.
• On July 12, 2021, SweetWater announced its West Coast expansion including a new Colorado Brewery and the opening of SweetWater Mountain Taphouse at Denver International Airport.
•  On July 7, 2021, Tilray announced the completion and shipment of the first successful EU GMP-certified medical cannabis harvest grown in Germany for German distribution.
• On June 29, 2021, Tilray launched a new medical cannabis brand in Canada, Symbios, the inaugural brand developed to offer patients a broader spectrum of medical cannabis formats and cannabinoid ratios at a better price point.

Price Action

Tilray’s shares were trading 0.46% higher at $10.84 per share during Thursday’s pre-market session.

Photo: Courtesy of Elsa Olofsson on Unsplash