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Nov 30, 2023
Tilray Q2 2024 Earnings Report
Tilray reported record Q2 net revenue, driven by growth in cannabis and beverage alcohol segments.
Key Takeaways
Tilray Brands reported a record Q2 fiscal year 2024 net revenue of $194 million, a 34% increase over the prior year period. The company is reiterating its adjusted EBITDA target of $68 million to $78 million for fiscal year 2024 and continues to expect to generate positive adjusted free cash flow.
Tilray Brands achieved record Q2 net revenue of $194 million, a 34% increase over the prior year period.
The company maintained its #1 market share in Canada with 31% growth in Canadian cannabis net revenue.
Tilray is the medical cannabis leader in Europe, experiencing 55% growth in international cannabis net revenue.
The company's beverage alcohol net revenue increased by 117% over the prior year period, positioning it to become a top 12 beverage-alcohol company.
Tilray
Tilray
Forward Guidance
The Company is reiterating its adjusted EBITDA target of $68 million to $78 million, representing growth of 11% to 27% as compared to fiscal year 2023. In addition, the Company continues to expect to generate positive adjusted free cash flow.
Positive Outlook
- Reiterating adjusted EBITDA target of $68 million to $78 million.
- Expecting to generate positive adjusted free cash flow.
- On track to achieve $30-$35 million in annual savings related to Integration of HEXO Acquisition
- Tilray Brands is a major force at the forefront of innovation, disrupting the global CPG industry across medical and adult-use cannabis, wellness foods and snacks, and craft beverages.
- Tilray Brands’ position as the #1 cannabis operation and brand portfolio in Canada by sales volume and market share, the European market leader in medical cannabis, and the leader in branded hemp products.
Challenges Ahead
- Management’s guidance for adjusted EBITDA is provided on a non-GAAP basis and excludes transaction expenses, restructuring charges, litigation costs, facility start-up and closure costs, purchase price accounting step-up, changes in fair value of contingent consideration and other items carried at fair value, non-operating income (expenses), and other non-recurring items that may be incurred during the Company's fiscal year 2024
- The Company cannot reconcile its expected adjusted EBITDA to net income or adjusted free cash flow to operating cash flow under “Fiscal Year 2024 Guidance” without unreasonable effort because of certain items that impact net income and other reconciling metrics are out of the Company’s control and/or cannot be reasonably predicted at this time.
- Many factors could cause actual results, performance or achievement to be materially different from any forward-looking statements, and other risks and uncertainties not presently known to the Company or that the Company deems immaterial could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein.
- The Company is unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures but would not impact the non-GAAP measures.
- Such items may include litigation and related expenses, transaction costs, impairments, foreign exchange movements and other items. The unavailable information could have a significant impact on the Company's GAAP financial results.