Amid U.S. Acquisition Drive, Tilray’s Sales Slip, But Bottom Line Improves
January 11, 2022Canadian cannabis giant Tilray saw net revenue falter in the three months through November, but cost-saving measures enhanced the company’s bottom line. Net revenue for the three-month period totaled $155.2 million, down from $168 million the previous quarter. However, total operating expenses fell dramatically to $87.5 million from $119.5 million in the prior quarter, pushing the company toward profitability. That difference made for net income of $5.8 million, a flip from the net loss of $34 million in the previous three months. Tilray logged an adjusted EBITDA gain of $13.8 million.
Breaking it down, Tilray saw a 7% bump in cannabis revenue that pushed it to $58.8 million in the quarter. Nearly half of the company’s revenue came from distribution operations, which generated $68.9 million. The acquisition of Georgia’s Sweetwater Brewing contributed $13.7 million in revenue and wellness segment revenue from its Manitoba Harvest acquisition accounted for another $13.9 million; together, Sweetwater and Manitoba Harvest represent 20% of the company’s revenue.
Tilray CEO Irwin Simon acknowledged both “sector-specific and macro-economic headwinds” during the quarter. “We maintained our No. 1 cannabis market share position in Canada on the strength of our brands and adept pricing and marketing adjustments. Importantly, we believe these adjustments will enable us to aggressively recapture share when the market right-sizes,” he noted. “SweetWater Brewing and Manitoba Harvest continued to invest in product innovation and acquisitions to enhance awareness and distribution. These profitable businesses further provide an opportunity to launch THC-based products upon federal legalization in the U.S.”
Since the end of the quarter in question Tilray has continued making moves as it looks to the future. On December 8, the company acquired Colorado’s Breckenridge Distillery, and shortly thereafter on December 21, through SweetWater Brewing, acquired Alpine Beer and Green Flash Brewing in California. SweetWater has also rolled out spirits-based RTD cocktails under Tilray’s Riff brand. As part of its push into more sectors as it works to transform itself into a global CPG company, the company also announced that it is now officially called Tilray Brands.—Danny Sullivan
Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.
