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Tilray’s Revenues Top $600 Million On Double-Digit Growth

August 2, 2022

Leamington, Ontario-based cannabis producer Tilray reported earnings for the quarter and fiscal year ended May 31, with net revenue growing 22% to $628 million, up from $513 million in fiscal 2021. Among other factors, the increase was driven by 18% growth in cannabis net revenue to $237 million, a 150% increase in beverage alcohol net revenue of $71.5 million, and a 929% increase in wellness net revenue to $59.6 million. The company showed gains on an underlying basis as well, as its adjusted EBITDA increased 18% to $48 million in fiscal year 2022.

The strong performance was tempered slightly in the fourth quarter due to a non-cash impairment of $395 million that led to a quarterly loss of $457.8 million. The impairment stemmed from inventory, goodwill, and other intangible assets related to changes in market opportunities, Tilray said. Nonetheless, net revenue for the quarter was up 8% compared to the same period last year to $153.3 million, and adjusted EBITDA reached $11.5 million to mark 13 consecutive quarters where the metric was in the black.

Tilray’s adult-use cannabis portfolio includes the Good Supply, Broken Coast, Riff, Solei, Canaca, Chowie Wowie, and The Batch brands, handled across Canada by Southern Glazer’s affiliate Great North Distributors. In the U.S., the company has been laying the groundwork for expansion with the acquisitions of Breckenridge Distillery last year and SweetWater Brewing in 2020, as well as with a stake in cannabis retailer MedMen.

Tilray saw the results of its merger with Aphria in this fiscal year after the blockbuster deal closed in early May 2021. The combined company realized $85 million in cost synergies over the last year, overshooting the target it planned to hit by the end of its next fiscal year. The cost saving stems primarily from consolidation in key areas of cultivation and production, cannabis and product purchasing, sales and marketing, and corporate expenses. Tilray now expects to deliver a total of $100 million in cost synergies from the transaction by the end of fiscal year 2023. And Tilray’s recent bailout of Hexo promises to produce an additional $80 million of cost savings over the next two years.

“Over the past year, we have accelerated the optimization of our operations and sharpened execution against our most profitable core business opportunities in medical, adult-use, wellness, and beverage-alcohol across Canada, Europe, and the U.S.,” said CEO Irwin Simon. “The outcome of this work is that we have driven top line growth across our markets, significantly improved our operating performance, and strengthened our balance sheet.”—Danny Sullivan

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