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Tilray’s Sales Slip On Canadian Market Disruptions

October 11, 2022

Tilray saw sales decline 9% to $153 million year-on-year in its fiscal first quarter ended in August, held back by disruptions in the Canadian market including strikes in British Columbia and Quebec as well as a cyberattack on Ontario’s wholesale and retail cannabis platform. Still, net cannabis revenue was up 10% sequentially to $59 million, and the company posted adjusted EBITDA of $13.5 million for the quarter.

In the U.S., Tilray’s businesses include SweetWater Brewing Company and Breckenridge Distillery in the drinks segment as well as CBD player Manitoba Harvest. The company says it’s “focused on driving revenue gains across each of these businesses, which will ultimately create a strong channel for additional revenue in adult-use cannabis, pending federal legalization.” “From a U.S. standpoint, what we’re going to continuously do is look at acquisitions in the consumer area with adjacency to cannabis,” chairman and CEO Irwin Simon told analysts.

Among its recent moves, Tilray recently renewed and expanded its distribution deal for Breckenridge Distillery with RNDC, extending the partnership to 38 states. “This opens new doors for Breckenridge and gives us full access to their premier distribution network, setting a new stage for accelerated brand growth,” said Simon.

“We also recently signed a distribution agreement with Southern Glazer’s, the leading distributor of beverage alcohol and CBD beverages in the U.S., to serve as the exclusive distribution partner for the Tilray Wellness CBD beverage portfolio across 13 states in the U.S. with additional opportunity to scale nationwide,” he added. “This strategic agreement allows Tilray brands to launch a wanted U.S. CBD beverage portfolio within familiar retail channels such as independent national grocery chains, convenience stores, local bars, restaurants and gas stations.”—Daniel Marsteller

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