Tilray Brands (TSX: TLRY) this morning posted its first quarter financial results, with revenues staying flat on a quarter over quarter basis. The company meanwhile maintained that it retained the top spot within Canadian markets in terms of market share, with an 8.5% stake in the market.
Revenue for the quarter came in at $153.2 million, versus $153.3 million in the prior quarter, and $168.0 million in the year ago period. Of the revenue recorded, cannabis amounted to 38% of revenue at $61.6 million, while distribution revenue came in at $70.6 million, or 42%, beverage alcohol came in at $20.7 million, or 12%, and the wellness division came in at $13.7 million, or 8%. Gross profit meanwhile amounted to $48.6 million.
“Tilray Brands’ top and bottom-line results during the first quarter reflect successful realignment of the business to maximize revenue and market share gains across core business segments and geographies. Most notably, we are now the leader in net cannabis revenue worldwide [in federally legal markets], highlighted by medical cannabis leadership globally and adult-use cannabis market share primacy in Canada. These achievements affirm that, amid market disruption and macroeconomic challenges, we have leveraged our scale, marketing acumen and CPG expertise to deliver strong — and sustainable — top line growth,” commented Irwin Simon, CEO of Tilray.
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While gross profit improved over the negative $6.7 million recorded in the fourth quarter, Tilray has yet to effectively grab control of its costs, with operating expenses totaling $69.8 million for the three month period, resulting in an operating loss of $21.2 million for the quarter. This was largely driven by general and administrative expenses of $40.5 million and amortization expenses of $24.4 million, and offset by transaction income of $12.8 million.
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Overall, Tilray reported a net loss of $65.8 million, or $0.13 per share. Adjusted EBITDA was reported at $13.5 million. The company also confirmed guidance of $70 to $80 million in positive adjusted EBITDA for the fiscal year, and to be free cash flow positive in its operating business units this year. Free cash flow for the current quarter meanwhile was negative $47.8 million.
In terms of its balance sheet, the company saw its cash position improve to $490.6 million, while total assets overall grew to $910.9 million from $803.5 million. Total current liabilities meanwhile declined from $280.3 million to $273.3 million.
Tilray Brands last traded at $5.37 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
