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Tilray Sees Q3 Revenue Rise By $28 Million Year-Over-Year, As Diverse Portfolio Grows

April 12, 2022

Leamington, Ontario-based cannabis producer Tilray saw net revenue of $152 million in its fiscal third quarter ended in February, down slightly from the prior quarter’s $155.2 million but still representing a major gain over the year-earlier period, when net revenue was at $123.9 million. Tilray has a more diversified set of revenue streams than some of its competitors, with $55 million coming from cannabis, $62.5 million from distribution, nearly $20 million from beverage alcohol (including U.S. holdings like SweetWater Brewing and Breckenridge Distillery), and $14.7 million from wellness products.

The quarter was a busy one for Tilray, going back to December when it acquired Breckenridge Distillery, strengthening its position in the U.S. as it positions for federal cannabis reform. December also saw Tilray acquisition SweetWater Brewing Company acquire craft brands Alpine Beer and Green Flash Brewing. In January Tilray announced an expansion of its medical cannabis exports to Australia. And just after the end of the period in question, Tilray announced its strategic alliance with Hexo Corp, giving it a 37% stake in the company.

“The Hexo transaction will be immediately accretive, creates a pathway to a meaningful equity position in Hexo, generates substantial shared operational efficiencies of approximately $80 million, allows us to partner for product innovation that we would benefit from in Canada and across the globe as legalization continues to gain traction,” CEO Irwin Simon said on an earnings call.

“In the U.S., legalization would be a milestone for Tilray Brands and the industry. Given uncertainty as to actual legislative reform, we are pursuing the next best thing, optionality. Our investment in MedMen is the best example of this approach,” Simon said. “And with our strong balance sheet, leadership experience, operating profitable CPG businesses and growing brands that consumers love, we see a clear path to additional acquisition opportunities across the U.S. and remain optimistic that recent House passes of the MORE Act will provide additional momentum for legalization.”

Tilray also broke out its net cannabis revenue by market channel. Unsurprisingly, the biggest chunk comes from adult-use sales in Canada, which made up 63% of cannabis revenue at $43.5 million. Canadian medical sales contributed $7 million, international sales were worth $15.8 million, and wholesale revenue was $2.8 million. All told, total cannabis revenue was at $69.2 million before $14.1 million, or 20%, went to excise taxes.—Danny Sullivan

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