Tilray’s Q3’24 shows mixed results: solid revenue growth YoY; but lower EBITDA and increased loss per share. Strategic focus on debt reduction, core segment strength, and integration efforts amidst evolving industry conditions.
Net Revenue: Despite missing estimates, Tilray Brands reported solid net revenue of $188.3 million for Q3’24, reflecting a growth of approximately 30% year-over-year. (Est. $198.3M)
Adjusted EBITDA: The adjusted EBITDA stood at $10.2 million, below the estimated $13.6 million, signaling some operational challenges.
Loss per Share: The company reported a loss per share of 12 cents, higher than the estimated loss of 5.5 cents.
Revised FY’24 Guidance: Tilray Brands revised its full-year adjusted EBITDA guidance to $60 million to $63 million, down from the previous range of $68 million to $78 million. Additionally, it no longer expects to achieve positive adjusted free cash flow for FY’24.
Financial and Operational Highlights:
– Global cannabis net revenue increased by 33%, with international cannabis revenue growing by 44%.
– Beverage-alcohol net revenue experienced significant growth, soaring by 165% to $54.7 million.
– The company successfully reduced outstanding convertible debt by $50.7 million during Q3.
– It maintained a strong liquidity position, with approximately $226 million in liquidity.
Additional Comments:
– Management emphasized notable achievements such as revenue growth across core business segments and increased adjusted gross profit.
– Integration of recently acquired craft beverage brands progressed well, along with realizing operating synergies from the HEXO acquisition.
– Tilray Brands completed cost reduction plans for both Canadian and international cannabis operations, contributing to strengthening the balance sheet.
