Tilray Brands Inc. (TLRY, Financial) recently held a conference call to discuss its financial results for the first quarter of the 2024 fiscal year, which ended on August 31, 2023. The company reported a record Q1 with net revenue of $177 million, representing a 50% growth year over year. The company's strategic diversification into various product categories and markets has allowed it to address changing cannabis market conditions while driving market share in the industries in which it competes.
Financial Highlights
TLRY's financial results for Q1 2024 showed significant growth in several areas. The company's net revenue rose to $177 million, a 15% increase from the prior-year quarter. Gross profit was $44.2 million, while the net loss improved to $55.9 million compared to $65.8 million in the prior-year quarter. The company's operating cash flow also improved by $30.5 million to a loss of $15.8 million from a loss of $46.3 million in the prior-year quarter.
Segment Performance
TLRY's cannabis segment was its largest by net revenue, comprising approximately 40% of the total revenue. Gross revenue from Canadian adult-use cannabis increased 22%, driven by innovation and share growth in dried flower, vapes, and pre-roll. The company's international cannabis revenue grew by 37%, and it is now the market leader in medical cannabis across Europe.
The company's distribution segment, primarily through CC Pharma, saw a 14% increase in revenue to $69.2 million. The beverage alcohol segment saw a 17% increase in revenue to $24.2 million, while the wellness segment held steady at $13.3 million.
Future Outlook
Looking ahead, TLRY plans to continue focusing on maximizing revenue growth, optimizing efficiency, and maintaining its balance sheet strength as it invests in its industry-leading brands. The company's strategic execution and achievements affirm that it has emerged as the most diversified cannabis lifestyle and CPG company globally with four distinct and complementary business segments.
TLRY's CEO, Irwin Simon, expressed confidence in the company's future, stating, "We believe we're in a great place going forward, well positioned with the resources, infrastructure, and operations, the distribution of brands, sales and marketing, and know-how to lead the revolution of cannabis CBG into the American and European mainstream."
