Tilray Brands narrows net loss but misses sales forecast for Q1
Published: 11:23 10 Oct 2024 EDT
Tilray Brands (NASDAQ:TLRY) shares moved lower after the cannabis-focused consumer packaged goods firm’s fiscal first quarter sales missed estimates.
Revenue for the quarter ended August 31 was $200 million, up 13% year-over-year but below the consensus estimate of $218.9 million.
Sales from its cannabis business declined to $62.8 million from $70.3 million, contributing 31% of total revenue.
On a positive note, beverage alcohol revenue including acquisitions was up 132% to $56 million with a gross margin of 41%.
Its German medical cannabis flower revenue increased by 50% following legalization in the nation.
Tilray’s loss per share of $0.04 beat analyst estimates of a loss per share of $0.05, and marked an improvement from a loss per share of $0.10 in the year-ago quarter.
Its net loss improved by 38% to a loss of $34.7 million from a loss of $55.9 million in the previous year’s quarter.
Tilray’s CEO Irwin Simon expressed optimism about the future of the cannabis industry, noting potential opportunities including the upcoming US presidential election.
“We believe that there is a greater likelihood that the upcoming US presidential election will result in improved regulatory changes in the cannabis industry, as both candidates have publicly confirmed their support for further legalization,” Simon said.
Shares of Tilray traded down 3% at US$1.58 post-earnings.
