Tilray Brands experienced a significant increase in their stock value after announcing their fiscal fourth-quarter results. Compared to the same period last year, the company reported a narrower loss and exceeded revenue expectations.
Tilray’s net loss for the three-month period ending on May 31 was $119.8 million, or 15 cents per share, a notable improvement from the $457.8 million loss, or 99 cents per share, in the previous year. Analysts surveyed by Refinitiv had anticipated a loss of only 5 cents per share. Additionally, their revenue soared 20% to $184.2 million, surpassing analysts’ expectations of $154 million.
Despite being a Canadian company, Tilray has been positioning itself as a frontrunner in the U.S. adult-use cannabis market. However, the lack of significant progress in banking reform and federal legalization has posed challenges to their plans.
Tilray’s cannabis segment experienced strong year-over-year growth, thanks to their acquisition of Canadian competitor HEXO in June for approximately $56 million. This acquisition solidified Tilray’s leading position in the Canadian cannabis market. The segment reported a 21% increase in revenue, reaching $64.4 million for the quarter.
According to Tilray CEO Irwin Simon, the recent completion of the HEXO transaction enhanced the company’s competitive position in Canada, which is the largest federally legalized cannabis market worldwide. Simon also mentioned the company’s focus on its consumer packaged goods business, along with plans to expand product distribution in Canada and international markets.
Furthermore, Tilray witnessed substantial growth in its beverage alcohol and distribution businesses, generating $32.4 million and $72.6 million in revenue during the period, respectively. This represents year-over-year increases of 43% and 19%.
Looking ahead to their fiscal year 2024, Tilray forecasts adjusted EBITDA of $68 million to $78 million, indicating growth of 11% to 27% compared to fiscal year 2023. This outlook reflects the company’s confidence in its continued success and expansion.
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