Irwin Simon, CEO of Tilray Brands Inc., said the company has weathered its second-quarter loss and is looking to grow its alcohol business in the United States and adult cannabis use in the United Kingdom by increasing the number of companies on both sides of the Canadian border. We are eyeing further acquisitions. White North.
completed its acquisition of New York, USA-based Montauk Brewing Co. in the second quarter of the fiscal year ended November 30. Breckenridge Distillery; Manitoba Harvest is a specialist in hemp, CBD and wellness products.
Tilray does not expect cannabis legalization at the federal level in the United States in the near future and sees an opportunity to grow its business through its alcohol business.
“We are not sitting around waiting for the government to legalize,” Simon told MarketWatch.
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Tilray has an option to acquire MedMen MMNFF if the US legalizes cannabis.
But until then, we will focus on the legal beverage market.
Constellation Brands Inc. STZ,
Brown-Forman Corp. BF.A,
“There is no reason not to be in these businesses,” Simon said. “It may be adjacent to the cannabis business.”
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Overall, Tilray’s alcoholic beverage sales in the second quarter increased 56% to $21.4 million on acquisition revenue.
Meanwhile, cannabis sales declined 15% to $49.9 million after considering the weaker Canadian dollar, pricing pressure and a one-time charge of $3.1 million related to product returns in Israel. .
In Canada, Tilray retains its #1 cannabis market share position with 8.3% market share in the second quarter. During the fourth quarter, the company extended its lead over his second largest licensed producer to 176 basis points.
He said the company would consider an acquisition in the Canadian cannabis sector.
Tilray ended the quarter with $433.5 million in cash and securities.
Tilray’s second quarter loss was $61.64 million, or 11 cents per share, compared to net income of $5.8 million, breakeven per share, in the year-ago quarter.
The adjusted loss totaled 6 cents per share, in line with analyst estimates in the FactSet study.
The company’s second-quarter net revenues were $144.14 million, down from $155.15 million a year ago. On a constant currency basis, his most recent quarter net earnings totaled $157.6 million.
Tilray said it is close to meeting its $130 million annual cost savings goal. Simon declined to say how many jobs he cut in the quarter, but said the company is currently on a hiring freeze.
Tilray said it would consider growing other types of products, such as fruits and vegetables, in its 3 million-square-foot greenhouse, given the opportunity.
“We want to maximize the use of assets that can generate cash,” he said.
“We are working to ensure that all assets are available.”
He also believes that THC-containing drinks are more likely in Canada.
“Someday you’ll be able to walk into a Canadian bar and get a drink on draft, or buy it at a liquor store instead of a cannabis dispensary,” he said.
Tilray shares fell 4.9% on Monday. The stock has fallen 56.3% in the last 12 months and is up 4% so far in 2023. Cannabis ETF THCX,
It has decreased by 67.3% in the last 12 months and will increase by 2.7% so far in 2023.
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