Cannabis, Alcohol Acquisitions Boost Revenue For Tilray
April 16, 2024Cannabis and beverage alcohol player Tilray saw revenue grow 30% to $188 million year-on-year in its fiscal third quarter ended in February, propelled by recent craft beer acquisitions in the U.S. and cannabis purchases in Canada. Adjusted EBITDA was $10.2 million for the quarter, down from $13 million a year ago.
Tilray says it continues to lead the Canadian cannabis market in revenue and volume, with an 11.6% market share and leadership in the cannabis flower, oils, concentrates, and THC beverages product categories. The company boosted its position in cannabis beverages in particular with its acquisition of Hexo Corp and Truss Beverage, which it says also “strengthened low-cost operations and complementary distribution across all Canadian geographies.” Cannabis net revenue grew 33% to $63 million in the third quarter.
In the U.S., Tilray has been focused on the beverage alcohol space, with brands including SweetWater Brewing, Montauk Brewing, and Breckenridge Distillery, among others. Its third-quarter beverage alcohol sales more than doubled to $55 million after it tacked on several craft beer brands from AB InBev over the past year.
Looking ahead, Tilray is betting heavily on federal cannabis legalization to unlock value in the U.S. market. “We believe that Tilray is well-positioned to immediately leverage its strong U.S. leadership position and strategic strengths across operations, distribution, and brands to include THC-infused products,” the company said. “We further believe that our MedMen investment in the U.S. will position us to maximize commercial opportunities providing additional revenue opportunities in cannabis.”
Tilray CEO Irwin Simon will be among the featured speakers at the 48th Impact Annual Marketing Seminar in New York on September 25.—Daniel Marsteller
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