Tilray Sees Revenue Decline On A Sequential Basis In Third Quarter

Tilray Brands (TSX: TLRY) this morning posted its third quarter financial results. Despite much blustering within the associated news release, revenues were down on a quarter over quarter basis at $151.9 million, while the company posted a net income of $52.5 million, largely due to non-operating income.

Revenue for the quarter was down on a sequential basis from $155.2 million to $151.9 million. Gross profits meanwhile improved from $32.8 million to $39.8 million, with no explanation provided for the notable increase.

The revenue breakdown saw cannabis revenue continue to decline on a percentage basis of total revenue, with cannabis revenue of $55.0 million accounting for 36% of third quarter revenues, as compared to revenues of $58.8 million accounting for 38% of second quarter sales. Distribution revenue also fell, dropping from $68.9 million in the second quarter to $62.5 million in the third quarter. Beverage alcohol meanwhile rose from 9% of revenue to 13% of revenue on a sequential basis, climbing from $13.7 million to $19.6 million, while wellness revenue improved marginally from $13.8 million to $14.7 million.

Despite the quarterly decline, CEO Irwin Simon commented, “Our third quarter results reflect progress and momentum across all of our key business segments and geographies, setting the stage to achieve our target for $4B in revenue by the end of fiscal 2024.” It is still unclear how the firm intends achieve this significant revenue improvement within the next two fiscal years.

While gross profits improved for the quarter, the firm is still significantly short of posting an operating income, with total operating expenses amounting to $59.6 million, which includes a change in fair value of contingent consideration to the tune of negative $29.1 million. General and administrative expenses were the largest expense this quarter, coming in at $38.4 million, followed by amortization of $24.6 million and selling expenses of $8.6 million.

The company overall posted an operating loss of $19.8 million for the quarter, as compared to an operating loss of $54.9 million in the second quarter. After adding non-operating income of $72.7 million, the company overall posted a net income of $52.5 million for the three month period. Adjusted EBITDA reportedly came in at $10.1 million.

The company meanwhile saw its cash position decline from $331.8 million to $279.2 million during the quarter.

Tilray Brands last traded at $8.76 on the TSX.

Information for this briefing was found via Edgar and Tilray. 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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