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Tilray Brands Reports Q3 Fiscal 2025 Financial Results
TLRYTilray(TLRY) GlobeNewswire·2025-04-08 11:00

Core Insights - Tilray Brands reported a net revenue of 186millionforthethirdquarter,withaconstantcurrencyrevenueof186 million for the third quarter, with a constant currency revenue of 193 million, impacted by strategic initiatives and SKU rationalization which reduced revenue by 13million[2][16]−Thecompanyconfirmedthatrecenttariffsoninternationaltradewillnotaffectitssales,asitsproductsaremanufacturedanddistributeddomesticallyintheU.S.andCanada,anditswellnessbusinessisexemptfromthetariffs[3][4]−Tilray′scannabissegmentachievedagrossmarginincreaseof800basispoints,maintainingitsleadershipinCanadabysalesperformanceandshowingstrongsalesgrowthinGermany[2][4]FinancialPerformance−Grossprofitincreasedby513 million [2][16] - The company confirmed that recent tariffs on international trade will not affect its sales, as its products are manufactured and distributed domestically in the U.S. and Canada, and its wellness business is exempt from the tariffs [3][4] - Tilray's cannabis segment achieved a gross margin increase of 800 basis points, maintaining its leadership in Canada by sales performance and showing strong sales growth in Germany [2][4] Financial Performance - Gross profit increased by 5% to 52 million, with a gross margin of 28%, up from 26% in the prior year [16] - The net loss for the quarter was (793.5)million,primarilyduetonon−cashimpairmentsandothercharges,whileadjustednetlosswas(793.5) million, primarily due to non-cash impairments and other charges, while adjusted net loss was (2.9) million compared to an adjusted net income of 0.9millionintheprioryear[16][34]−AdjustedEBITDAforthequarterwas0.9 million in the prior year [16][34] - Adjusted EBITDA for the quarter was 9 million, down from 10.2millioninthepreviousyear,affectedbySKUrationalizationandprioritizationofinternationalcannabismarkets[16]StrategicInitiatives−Tilray′sProject420aimstoachieve10.2 million in the previous year, affected by SKU rationalization and prioritization of international cannabis markets [16] Strategic Initiatives - Tilray's Project 420 aims to achieve 33 million in cost savings, with 20.6millionalreadycompleted,focusingonimprovingefficiencyandprofitabilitythroughSKUrationalization[5][6]−ThecompanyexpandeditsU.S.distributionofhemp−derivedTHCdrinksacross10states,generating20.6 million already completed, focusing on improving efficiency and profitability through SKU rationalization [5][6] - The company expanded its U.S. distribution of hemp-derived THC drinks across 10 states, generating 1.4 million in revenue from these sales [6][8] - Tilray's cannabis segment is redirecting inventories to international markets to capitalize on higher margins, with a focus on preserving gross margins and maintaining higher average selling prices [7][8] Balance Sheet and Debt Management - The company reduced total debt by 71million,includinga71 million, including a 58 million reduction in convertible notes, resulting in a net debt to trailing twelve months EBITDA of less than 1.0x [8][16] - As of April 8, 2025, Tilray had 248millionavailableincashandmarketablesecurities,providingflexibilityforstrategicopportunities[8][16]FutureOutlook−Tilrayreviseditsfiscalyear2025guidancefornetrevenuetoarangeof248 million available in cash and marketable securities, providing flexibility for strategic opportunities [8][16] Future Outlook - Tilray revised its fiscal year 2025 guidance for net revenue to a range of 850 million to 900million,withpotentialadjustmentsforconstantcurrencyandstrategicinitiativestotalingapproximately900 million, with potential adjustments for constant currency and strategic initiatives totaling approximately 50 million [12][16] - The company is focused on leveraging advanced technologies, including AI and cryptocurrency, to enhance efficiency and drive growth across its operations [9][10]