Tilray Reports FY Record 26% Revenue Growth
The TDR Three Key Takeaways: Tilray Brands’ Record Revenue Growth
- Tilray Brands reported a 26% increase in net revenue for fiscal 2024, beating Wall Street analyst estimates of $783M, reaching $789 million.
- Tilray achieved significant growth in its beverage-alcohol sector, with net revenue increasing by 113%.
- Wall Street analysts expect strong future revenue growth and a narrowing of losses, but total profitability is not expected until the 2027 fiscal year.
Tilray Brands (Nasdaq: TLRY; TSX: TLRY) has released strong financial results for the fiscal year ending May 31, 2024. The company reported a 26% increase in net revenue for fiscal 2024, reaching $789 million. This beat the average estimates of Wall Street analysts that had predicted $783M.
This growth was driven by strong contributions from the cannabis and beverage-alcohol segments. The beverage-alcohol sector experienced remarkable growth, with net revenue soaring by 113% to $202 million. The cannabis segment also showed strong performance, with a 24% increase in net revenue to $273 million.
Tilray’s revenue growth was assisted by past strategic acquisitions, including HEXO Corp., Truss Beverage Co., and eight craft brands from Anheuser-Busch. These acquisitions have significantly strengthened Tilray’s market position.
In the United States, Tilray has become the fifth-largest craft brewer. In Canada, the company holds the top position in the recreational cannabis market and is a leader in medical cannabis across Europe.
Tilray has also achieved several global milestones outside of North America this year:
- Yesterday, Tilray’s Aphria RX has received a cannabis trading license in Germany. This license allows Tilray to import and distribute medical cannabis in Germany.
- On July 24th, Tilray Medical receives approval for Tilray Solucao Oral THC10 in Portugal.
- On July 22, a new license boosted German cannabis production fivefold and from three to 31 strains. On June 20, Launched Broken Coast in Australia, offering four THC cannabis varieties.
- On March 14, Tilray Medical received approval for its first medical cannabis extract in Portugal.
The company achieved record gross profit and adjusted EBITDA for fiscal 2024. Gross profit increased to $223 million, while adjusted EBITDA rose by 37% in the fourth quarter compared to the previous year.
Irwin D. Simon, Chairman and Chief Executive Officer, stated, “Tilray Brands is leading the convergence of cannabis, beverages, and wellness on a global scale. In Fiscal 2024, the Company achieved remarkable growth across its businesses, with a 26% increase in net revenue over the prior year, record-breaking performance in gross profit and adjusted EBITDA, and generated positive adjusted free cash flow for the fiscal year. We have also significantly reduced our net convertible debt by ~$300 million and surpassed our cost-saving synergy target, strengthening our balance sheet. These results were driven by the successful execution of our diversification strategy, which we started in 2020, and the hard work of our team.”
Net loss decreased to ($222.4) million in fiscal 2024 compared to net loss of $(1.4) billion in the prior fiscal year, almost all resulting from non-cash expenses. Net loss per share narrowed to $(0.33) and improved compared to a net loss of $(2.35) in the prior fiscal year.
Will Tilray experience profitability in 2025, or will investors have to wait longer?
According to Wall Street analysts, Tilray is expected to continue strong revenue growth in 2026 and 2027, with revenue expected to surpass $1B in 2027. However, balancing reinvestment and growth is expected to narrow losses each year but not make Tilray close to fully profitable based on net income until the fiscal year 2027.
Investors will focus on watching fast-growing companies like Tilray balance their working capital requirements with their expansion plans.
