Tilray Brands, a Canadian cannabis company, experienced significant growth in the second quarter due to acquisitions and expansion efforts abroad. The company's revenue surged by over a third, while it managed to reduce its loss compared to the same period last year.
Improving Financials
In the quarter ending on November 30th, Tilray Brands reported a loss of $46 million, down from $62 million in the previous year. On a per-share basis, the loss amounted to seven cents, a decrease from eleven cents in Q2 of the previous year. Analysts surveyed by FactSet had projected a loss of five cents per share.
When adjusted for one-time items, the loss was $2.7 million, which translates to a near breakeven outcome on a per-share basis.
Revenue Growth
Tilray Brands also witnessed impressive revenue growth, with total revenue rising 34% to reach $194 million, surpassing analyst expectations of $193.7 million.
Cannabis revenue specifically increased by 35% to $67 million. However, the gross margin in the cannabis business declined to 31%, or 35% on an adjusted basis, compared to 43% in the previous year. This decline was partially offset by Tilray's expansion into emerging medical markets internationally.
In addition to its cannabis business, Tilray saw a significant boost in revenue from its alcoholic beverage segment, which more than doubled to $47 million. This growth followed the company's acquisition of Shock Top, Blue Point Brewing Company, and six other beer and beverage brands from Anheuser-Busch.
However, the gross margin for the beverage unit fell to 34% from 47% in the previous year. On an adjusted basis, it dropped to 38% from 52%. Excluding the newly acquired brands, the adjusted gross margin would have been 55%.
While Tilray Brands continues to face challenges in terms of profitability, the company's revenue growth and efforts to expand into new markets indicate promising opportunities for future success.
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