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Tilray Q4 Loss Narrows; Revenue Rises 20% Quarter over Quarter

Published 2023-07-26, 10:19 a/m
© Reuters.

By Ketki Saxena

Investing.com -- Cannabis company Tilray (TSX:TLRY) Brands Inc. reported a narrower loss for the fourth quarter ending May 31, 2023, accompanied by a record revenue increase, despite missing Wall Street's expectations. The company's net loss was reduced by approximately 74% year-over-year to $120 million, while its adjusted EBITDA for the period grew by around 93% YoY to $22 million. Revenue rose by 20% to $184.19 million, surpassing analyst projections of $154 million.

The company's gross margin improved to 37% during the quarter from -4% in the prior-year period. The annualized run-rate savings from the company’s $30M cost optimization plan reached approximately $22M during FY23.

Tilray's cannabis, beverage alcohol, and distribution businesses contributed significantly to the revenue growth. These sectors brought in net revenues of $67M, $32.4M, and $64M respectively, reflecting YoY growth of ~21%, ~43%, and ~19%.

Despite a strong quarter, Tilray's full-year revenue remained mostly unchanged at $627M. However, its net loss surged over threefold to $1.4B, while adjusted EBITDA rose about 28% YoY to $61M.

Looking ahead to fiscal 2024, Tilray projects an adjusted EBITDA between $68M–$78M, indicating an 11%–27% YoY growth with positive adjusted free cash flow.

The recent closing of the HEXO transaction has also bolstered Tilray's market position in Canada, which is currently the largest federally legalized cannabis market in the world. The company's market share improved to approximately 13% following this acquisition.

CEO Irwin Simon stated that their financial performance underscores Tilray as "the leading, most diversified cannabis lifestyle and consumer packaged goods company in the world."

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