NASDAQ$TLRY

Tilray Brands Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Tilray reported record Q2 net revenue, driven by growth in cannabis and beverage alcohol segments.

Tilray Brands reported a record Q2 fiscal year 2024 net revenue of $194 million, a 34% increase over the prior year period. The company is reiterating its adjusted EBITDA target of $68 million to $78 million for fiscal year 2024 and continues to expect to generate positive adjusted free cash flow.

  • Tilray Brands achieved record Q2 net revenue of $194 million, a 34% increase over the prior year period.
  • The company maintained its #1 market share in Canada with 31% growth in Canadian cannabis net revenue.
  • Tilray is the medical cannabis leader in Europe, experiencing 55% growth in international cannabis net revenue.
  • The company's beverage alcohol net revenue increased by 117% over the prior year period, positioning it to become a top 12 beverage-alcohol company.

Headline financials

Total Revenue

$194M

Previous: $144M+34.4%
EPS

-$0.07

Previous: -$0.06-16.7%
Capital Expenditures

-$5.74M

No prior period
Free Cash Flow

-$49M

Previous: -$69.5M+29.4%
Net Income

-$49M

Previous: -$69.5M+29.4%
Operating Income

-$41.8M

Previous: -$51.8M+19.4%
Gross Profit

$47.4M

Previous: $40.1M+18.2%
Cash & Equivalents

$143M

Previous: $190M-24.6%
Total Assets

$4.33B

Previous: $5.47B-20.9%
R&D Expense

$56K

No prior period
Stock-Based Comp

$8.2M

No prior period

Revenue & EPS history

Tilray · Revenue · Quarterly

$194M

Q2 2024+34.4%vs Q2 2023
Beat estimate in 6 of 13 quarters(46%)
ActualEstimate

Revenue by segment

Tilray · $152M total across 4 segments · Q3 2022

  • Distribution
    $62.5M-11.0%
  • Cannabis
    $55M+31.9%
  • Beverage
    $19.6M+64.1%
  • Wellness
    $14.7M

Forward guidance

The Company is reiterating its adjusted EBITDA target of $68 million to $78 million, representing growth of 11% to 27% as compared to fiscal year 2023. In addition, the Company continues to expect to generate positive adjusted free cash flow.

Tailwinds

  • Reiterating adjusted EBITDA target of $68 million to $78 million.
  • Expecting to generate positive adjusted free cash flow.
  • On track to achieve $30-$35 million in annual savings related to Integration of HEXO Acquisition
  • Tilray Brands is a major force at the forefront of innovation, disrupting the global CPG industry across medical and adult-use cannabis, wellness foods and snacks, and craft beverages.
  • Tilray Brands’ position as the #1 cannabis operation and brand portfolio in Canada by sales volume and market share, the European market leader in medical cannabis, and the leader in branded hemp products.

Headwinds

  • Management’s guidance for adjusted EBITDA is provided on a non-GAAP basis and excludes transaction expenses, restructuring charges, litigation costs, facility start-up and closure costs, purchase price accounting step-up, changes in fair value of contingent consideration and other items carried at fair value, non-operating income (expenses), and other non-recurring items that may be incurred during the Company's fiscal year 2024
  • The Company cannot reconcile its expected adjusted EBITDA to net income or adjusted free cash flow to operating cash flow under “Fiscal Year 2024 Guidance” without unreasonable effort because of certain items that impact net income and other reconciling metrics are out of the Company’s control and/or cannot be reasonably predicted at this time.
  • Many factors could cause actual results, performance or achievement to be materially different from any forward-looking statements, and other risks and uncertainties not presently known to the Company or that the Company deems immaterial could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein.
  • The Company is unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures but would not impact the non-GAAP measures.
  • Such items may include litigation and related expenses, transaction costs, impairments, foreign exchange movements and other items. The unavailable information could have a significant impact on the Company's GAAP financial results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-2.1%

Avg return

Earnings day

-4.2%

Avg return

5 days after

-3.5%

Avg return

30 days after

34%

11 / 32 earnings

Positive

+27.4%

Q4 2023

Best reaction

-22.0%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-2.9%-9.2%
Q2 2026+0.2%+8.4%-17.0%
Q1 2026+21.2%-7.0%-27.9%
Q3 2025-21.2%-15.5%-24.1%
Q2 2025-13.9%-13.9%-27.0%
Q1 2025+0.0%-3.7%-8.6%
Q4 2024+9.8%+1.6%-7.1%
Q3 2024-22.0%-29.7%-23.6%
Q2 2024-14.5%-20.1%-19.2%
Q1 2024-5.4%-9.4%-14.3%
Q4 2023+27.4%+50.6%+39.3%
Q3 2023-3.1%-8.8%+5.8%
Q2 2023-5.4%+7.5%+2.7%
Q1 2023-21.3%-21.0%-2.3%
Q4 2022+12.0%+19.6%+17.5%
Q3 2022-7.8%-9.4%-32.6%
Q2 2022+15.0%+6.9%+7.8%
Q1 2022-2.8%-4.7%-0.8%
Q4 2021+21.1%+14.8%+5.4%
Q3 2021+1.4%+0.1%-16.8%
Q4 2020-21.7%-24.1%-26.8%
Q2 2021+4.3%+10.2%+109.7%
Q3 2020-13.5%-20.6%-17.8%
Q2 2020-7.1%-2.8%-24.3%
Q1 2020-4.0%-0.1%+24.6%
Q4 2019-9.8%-30.6%-59.1%
Q3 2019-4.5%-9.1%-13.6%
Q2 2019-8.1%-26.3%-28.0%
Q1 2019+5.2%-1.7%-12.4%
Q4 2018-3.7%-7.4%-30.1%
Q3 2018-9.8%-2.6%-33.4%
Q2 2018+16.3%+22.0%+145.7%
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2012
Q4 2012
Q3 2011
Q2 2011

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