Cannabis Company Tilray-Brands Demonstrates Strong Growth Rates
Shares of Tilray-Brands soared Wednesday after the Canadian cannabis producer reported a smaller loss in its fiscal fourth quarter than a year ago on solid sales.
Although a Canadian company, Tilray has positioned itself as a leader in the U.S. adult-use cannabis market. However, plans were hampered by difficulties with the bank and uncertainties surrounding federal legalization.
Rising cannabis stocks.
Meanwhile, revenue rose 20% to $184.2 million, up from $153.3 million in the same period last year. That was well above analyst expectations of $154 million, according to Refinitiv. Tilray’s cannabis segment experienced strong year-over-year growth after the company acquired Canadian rival HEXO for about $56 million in June. The sale solidified Tilray’s leadership position in the Canadian cannabis market. The company, which is engaged in the cultivation, production, distribution and sale of medical and adult-use cannabis products, saw sales increase 21% to $64.4 million in the quarter.
“The recent completion of the HEXO transaction has boosted our competitive position in Canada, the world’s largest federally legalized cannabis market,” Tilray CEO Irwin Simon said in a statement. The company also plans to expand its product distribution in Canada and international markets.
Tilray also experienced healthy industry growth in its beverage and distribution businesses, which generated $32.4 million and $72.6 million in revenue during the period, respectively, representing year-over-year increases of 43% and 19%. For fiscal 2024, the company forecasts EBITDA of $68 million to $78 million, representing growth of 11% to 27% from fiscal 2023.
Source: CNBC.com (EN)
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