Tilray Shares Up On Stagnating Revenue Kept In Line By Alcohol Sales, What About Cannabis?

Tilray Brands, Inc. TLRY TLRY, released financial results for the fourth quarter and fiscal year ended May 31, 2023, revealing net revenue of $627 million, a decrease of 0.2% compared to $628 million in the prior fiscal year.

Fiscal Year 2023 Financial Highlights

• Gross profit was $147 million, an increase of 26% compared to gross profit of $116.8 million in FY 2022.

• Gross margin rose to 23% from 19% in the prior fiscal year.

• Cannabis net revenue was $220 million compared to $238 million in the prior fiscal year.

• Beverage alcohol net revenue increased 33% from the prior fiscal year to $95 million.

• Distribution net revenue was $259 million compared to $260 million in the prior fiscal year.

• Net loss of $1.4 billion compared to net loss of $434 million in the prior fiscal year.

• Adjusted EBITDA rose 28% to $61 million from $48 million in the prior fiscal year, marking the fourth consecutive year of positive adjusted EBITDA and in line with our adjusted EBITDA guidance of $60 million to $66 million.

• Ended the period with $207 million in cash and $242 million in marketable securities.

Q4 Fiscal 2023 Financial Highlights

• Net revenue increased 20% to $184 million in the fourth quarter compared to $153 million in the prior year quarter.

• Gross profit was $67 million, compared to a gross loss of $6.7 million in the Q4 FY 2022.

• Gross margin was 36%, compared to negative 4% in Q4 FY 2022.

• Net loss of $120 million in the fourth quarter compared to net loss of $458 million in the prior year quarter.

• Adjusted EBITDA rose 93% to $22 million in the fourth quarter from $12 million in the prior year quarter.

Fiscal Year 2024 Guidance

For its fiscal year ended May 31, 2024, the company expects to achieve adjusted EBITDA targets 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.

Price Action

Tilray shares were trading 15.47% higher at $1.94 during Wednesday’s pre-market session.

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