Tilray Brands (TSX: TLRY) this morning reported its second quarter financial results, posting topline revenue of $211 million for the three month period ended November 30, 2024.
“In our fiscal second quarter, Tilray achieved strong results while making significant progress on our strategic plan. Our dedication to operational excellence has improved Gross Margins, Gross Profit, and overall profitability across our business segments, positioning us favorably for future success,” commented Irwin Simon, CEO of Tilray.
Net revenue improved 9% on a year over year basis, climbing from $193.8 million. Gross profit improved by 29%, hitting $61.2 million, while gross margins improved to 29%, versus 24% in the year ago period.
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On a segmented basis, distribution revenue remained the firms largest segment with revenue of $68 million, while cannabis brought in net revenue of $66 million, beverage alcohol contributed $63 million, and wellness accounted for $15 million in net revenues.
Despite the improvements however Tilray has still failed to reduce its cost structure to a point where it will be profitable, with operating expenses totaling $103.4 million during the second quarter. The largest expenditures here are General and Administrative at $46.0 million, Amortization at $22.9 million, and Selling at $16.2 million. Operating losses for the quarter as a result hit $42.2 million.
Net losses for the quarter came in at $85.3 million, an 85% increase verses the $46.2 million loss posted in the second quarter of 2024, with the increase a result of non-operating expenses of $33.3 million. On an adjusted basis, losses came in at $2 million. versus an adjusted loss of $3 million in the year ago period. Adjusted EBITDA meanwhile hit $9 million, as compared to $10 million in Q2 2024.
Tilray also confirmed its fiscal year 2025, with net revenues expected to come in between $950 million and $1.0 billion.
The company ended the quarter with cash and cash equivalents of $189.7 million.
Tilray last traded at $1.99 on the TSX.
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