Tilray Brands Sees Fourth Quarter Impacted By Massive Impairments, Negative Gross Profit

Tilray Brands (TSX: TLRY) this morning reported its fourth quarter and full year fiscal 2022 financial results. The results were highlighted by slowing quarterly growth, as well as major impairments that resulted in a significant net loss.

Revenue for the quarter amounted to $153.3 million, marking growth of 0.96% on a quarter over quarter basis. The quarter saw the firms cannabis segment slide to 35% of revenues at $53.3 million, while distribution revenue fell to 39% at $61.2 million. Beverage alcohol meanwhile increased to 15% of revenues at $22.7 million, while the remainder came from the wellness segment, at 11%, or $16.2 million.

Gross profit for the quarter meanwhile was negative $6.7 million.

Operating expenses for the quarter totaled $460.7 million, with the massive expensive here being a $378.2 million impairment related to inventory, goodwill and other intangible assets. Commenting on the significant writedowns, the company stated, “The impact was related to changes in market opportunities causing a shift in our strategic priorities.”

Excluding these massive impairments, expenses for the quarter totaled $82.4 million, versus $59.6 million in the third quarter. Despite this, the company told a story of cost-saving synergies that came as a result of the recent merger with Aphria Inc, which are said to have hit $85 million, $5.0 million more than the forecasted figure.

A further $20 million in savings are now expected to be realized as a result of that transaction, while the recent arrangement with Hexo (TSX: HEXO) is expected to deliver an additional $80 million in savings. Whether those savings are enough to reach profitability however is another question.

Overall, the company posted a net loss of $457.8 million for the three month period, along with adjusted EBITDA of $11.5 million.

For the full fiscal year, the company posted revenues of $628.4 million, versus $513.1 million in 2021. Gross profit came in at $116.8 million, while operating expenses totaled $727.2 million. The firm posted a net loss of $434.1 million for the full fiscal year, and adjusted EBITDA of $48.0 million.

In terms of its balance sheet, the company ended the year with $415.9 million in cash on hand, and total current assets of $803.5 million. Total current liabilities meanwhile sit at $280.3 million.

Tilray Brands last traded at $4.18 on the TSX.


Information for this briefing was found via Sedar and Hexo Corp. 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.

Video Articles

Why $50 Silver, $4000 Gold Might Be Closer Than Anyone Thinks | Bradley Langille – GoGold Resources

Why Silver’s True Price Could Be Much Higher | Joaquín Marias – Argenta Silver

Gold Enters A ‘Stronger For Longer’ Phase | Richard Young – i-80 Gold

Recommended

Emerita Resources Intersects Further Mineralization At El Cura, Expanding Deposit

ESGold Sees ANT Survey Reveal Vertically Continuous System To 1,200 Metres Depth

Related News

Tilray Rumoured To Be In Talks With Tobacco Firm

Tilray Inc (NASDAQ: TLRY) saw plenty of action today despite widespread reports that its “biggest...

Tuesday, September 3, 2019, 03:32:05 PM

Tilray: Canaccord Cuts Price Target To $9.00

On January 10th, Tilray Inc (TSX: TLRY) reported their fiscal second-quarter financial results, the company...

Tuesday, January 11, 2022, 04:22:00 PM

Tilray: Analysts Leave Targets Unchanged After MedMen Investment

On August 17, Tilray (NASDAQ: TLRY) made the announcement that they formed a new limited...

Thursday, August 19, 2021, 01:03:00 PM

Cannabis Executives Complain Over Lack of Tax Reform in Canadian Budget… While Making Bank

Top executives from leading cannabis companies in Canada have voiced their dissatisfaction with the absence...

Thursday, April 18, 2024, 11:17:16 AM

Tilray Brands Shares Soar On Fiscal 2024 Growth, Driven by Diversification and Acquisitions

Tilray Brands (TSX: TLRY) has announced its financial results for the fourth quarter and fiscal...

Tuesday, July 30, 2024, 12:20:00 PM