Investing.com -- Tilray (TSX:TLRY) Brands (NASDAQ:TLRY) has reported a 14% drop in second-quarter income, missing analysts' estimates, but the cannabis company still backed its full-year guidance following strong performance at its marijuana and beverage divisions that boosted revenue to a new high.
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Quarterly adjusted earnings before interest, taxes, depreciation and amortization subsequently slipped to $10.1 million during the three months ended on Nov. 30, below Bloomberg consensus expectations of $13.9M.
The New York-based firm said pre-acquisition liabilities and exit costs associated with its $56 million purchase of rival Hexo Corp (TSX:HEXO) last year led to increased cash use.
Tilray agreed to buy Hexo last April, as it looked to take advantage of its Canadian peer's lower valuation. Cannabis groups have seen their market caps fall sharply since 2018, weighed down in part by federal-level prohibitions on marijuana in the U.S. that have narrowed their access to capital.
However, Tilray still posted record net revenue of $194M, an uptick of 34% compared to the corresponding period last year, thanks in part to strong sales of its cannabis and beverage offerings.
The company also reiterated its full-year forecast for adjusted core profit of $68M-$78M, adding that it is on track to achieve as much as $35M in annual savings related to the Hexo deal.