- Tilray Brands (TSX:TLRY), a global cannabis stock, posted improved financial results in Q1 fiscal 2025, ended Aug. 31, 2024, including robust increases in gross profit and net beverage revenue
- Net loss also fell by 38 per cent year-over-year from -US$55.9 million to -US$34.7 million
- Tilray Brands is a global cannabis and consumer packaged goods company supporting more than 40 brands in more than 20 countries
- Tilray stock has given back 26.80 per cent year-over-year and more than 90 per cent since 2019
Tilray Brands (TSX:TLRY), a global cannabis stock, posted improved financial results in Q1 fiscal 2025, ended Aug., 2024, including robust increases in gross profit and net beverage revenue and a steep decrease in net losses.
Tilray’s financial highlights for Q1 2025
- Net revenue increased by 13 per cent year-over-year (YoY) to US$200 million.
- Gross profit increased by 35 per cent YoY to US$59.7 million, while gross margin increased from 25 to 30 per cent.
- Net loss dwindled by 38 per cent YoY from -US$55.9 million to -US$34.7 million, improving net loss per share from -US$0.10 to -US$0.04 over the period.
- Adjusted net loss per share improved to -US$0.01 from -US$0.04 YoY.
- Adjusted EBITDA was US$9.3 million, down from US$10.7 million YoY.
- Beverage alcohol net revenue including acquisitions reached US$56 million, up by 132 per cent YoY, including a gross margin of 41 per cent in Q1 2025, with management confident in further momentum after the launch of Tilray Alternative Beverages in October to capture more of the hemp-derived Delta-9 THC market in the United States.
- Cannabis net revenue reached US$61.2 million with a gross margin of 40 per cent, driven by a 50 per cent increase in German medical cannabis flower revenue after legalization.
- Distribution net revenue was US$68.1 million with a gross margin of 12 per cent.
- Wellness net revenue was US$14.8 million, up by 11 per cent YoY, achieving a gross margin of 32 per cent in the quarter.
The cannabis company’s notable Q1 follows a strong fiscal 2024, during which it cut net losses by more than five times YoY supported by double-digit gains in revenue (26 per cent) and adjusted gross profit (14 per cent) and stable adjusted EBITDA of more than US$60 million, up from US$58.7 million in fiscal 2023.
While Tilray has grown revenue by more than 3.75 times and gross profitability by almost 10 times since 2020, its operations have reported more than US$2.7 billion in cumulative net losses over the period.
Leadership insights
“I am excited to lead a company that is disrupting the consumer-packaged goods industry through innovative products that are transforming the way consumers eat, drink and unwind with cannabis, hemp and beverage products,” Irwin D. Simon, Tilray’s chairman and chief executive officer, said in a statement. “Our investments in the cannabis, wellness, beverage and distribution industries are focused on shaping the future and staying ahead of the curve. We are dedicated to executing our strategic plan to increase revenue, drive operational efficiencies and improve margins and profitability while investing in our continued growth. Our commitment to innovation and growth is unwavering.”
“We believe that there is a greater likelihood that the upcoming U.S. presidential elections will result in improved regulatory changes in the cannabis industry, as both candidates have publicly confirmed their support for further legalization,” Simon added. “We are optimistic about the future of the cannabis industry and look forward to the potential opportunities that lie ahead.”
About Tilray Brands
Tilray Brands is a global cannabis and consumer packaged goods company supporting more than 40 brands in more than 20 countries.
Tilray stock (TSX:TLRY) is down by 5.33 per cent, trading at C$2.13 per share as of 9:57 am ET. The stock has given back 26.80 per cent year-over-year and over 90 per cent since 2019.
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(Top image: Tilray Brands)