Tilray Reports 13% Decline in Cannabis Revenue for Q1 FY25

LOS ANGELES- Tilray Brands, a lifestyle and consumer packaged goods company, announced a 13% decline in its cannabis revenue for the first quarter of fiscal year 2025, ending August 31, 2024. Despite overall growth in other business segments, the cannabis division reported net revenue of $61.2 million. This comes as the company faces broader challenges in the cannabis market, though it continues to invest in its diversified portfolio, which includes cannabis, hemp, beverage, and wellness products.

Financial Highlights:

• Total net revenue for Q1 increased by 13% to $200 million, driven largely by beverage alcohol sales, which surged 132% to $56 million.
• Gross profit for the quarter rose by 35% to $59.7 million, reflecting a gross margin improvement to 30%.
• Cannabis gross margin stood at 40%, while distribution and wellness gross margins were 12% and 32%, respectively.
• Despite improving margins, the company reported a net loss of $34.7 million for the quarter, a 38% improvement from the $55.9 million loss in the same quarter last year.
• Adjusted EBITDA came in at $9.3 million, slightly down from $10.7 million in the prior year quarter.

Stock Performance and Outlook:

Tilray’s shares have dropped 29.1% year-to-date, underperforming the S&P 500, which has gained 21.4% over the same period. Investors are watching closely to see how the company’s revenue growth trends and cost management strategies evolve, as future stock movement will likely hinge on earnings outlooks and potential revisions.