Tilray Cuts Guidance As Losses Widen In Q3
Tilray Brands (TSX: TLRY) has seen its revenue decline on a sequential basis for the third quarter of 2024. Revenues fell from $194 million in the second quarter to $188 million in the third quarter on a net basis, while growing by 30% on a year over year basis.
Gross profit however improved to $49.4 million, up from $47 million in the second quarter, with gross margins coming in at 26%.
Cannabis remained the largest segment for Tilray in the third quarter, with net revenues of $63.4 million, a decline from $67 million in the second quarter. The beverage-alcohol segment meanwhile reported revenues of $54.7 million, compared to $47 million previously, while distribution revenue fell from $67 million to $56.8 million.
Tilray meanwhile remains unprofitable, with the net loss in the third quarter climbing to $105 million, more than double the $46 million loss reported in the second quarter. Adjusted EBITDA totaled $10.2 million for the third quarter, a marginal improvement over the $10.1 million reported in the second quarter.
READ: Tilray Closes Purchase Of Molson Coors’ Interest In Truss Beverage
In terms of liquidity, the firms balance sheet position worsened over the quarter with its liquidity position declining from $261 million to $226 million. Tilray’s cash position improved from $143 million to $146.3 million, however marketable securities fell from $116 million to $79.6 million.
After reiterating guidance in the second quarter, Tilray also cut its Adjusted EBITDA guidance this morning for 2024, dropping the target range from $68 to $78 million to that of $60 to $63 million. Tilray also is no longer calling for positive adjusted free cash flow, which it is blaming on “delayed timing for collecting cash on various asset sales.”
Tilray Brands last traded at $3.50 on the TSX.
Information for this briefing was found via Edgar, 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.
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