Tilray Brands, Inc. reported a net revenue of $200.0 million for the three months ended August 31, 2024, marking a 13% increase from $176.9 million in the same period of 2023. The growth was primarily driven by a significant rise in beverage alcohol revenue, which surged to $56.0 million, up 132% from $24.2 million in the prior year, largely due to the acquisition of craft brands from Anheuser-Busch Companies, LLC. In contrast, cannabis revenue decreased to $81.2 million from $96.9 million, reflecting a 16% decline attributed to price compression and competitive pressures in the Canadian market.

Gross profit for the quarter was $59.7 million, a 35% increase from $44.2 million in the previous year. However, total operating expenses rose to $96.3 million, up 23% from $78.6 million, driven by higher selling expenses and restructuring costs related to the HEXO acquisition. The net loss for the quarter improved to $34.7 million, compared to a net loss of $55.9 million in the same period last year, indicating a 38% reduction in losses.

Tilray's total assets increased to $4.3 billion as of August 31, 2024, from $4.2 billion at the end of May 2024. Current assets also rose, reaching $725.9 million, while cash and cash equivalents decreased to $205.2 million. The company’s stockholders' equity increased to $3.5 billion, reflecting a positive trend in financial stability.

Strategically, Tilray completed the acquisition of a portfolio of craft brands from Anheuser-Busch for $83.7 million in cash on September 29, 2023, which is expected to enhance its beverage segment. Additionally, on September 1, 2024, Tilray acquired four craft beer brands from Molson Coors for $23.1 million, further expanding its market presence.

The company also reported restructuring charges of $4.2 million for the quarter, significantly higher than $0.9 million in the prior year, primarily due to costs associated with the HEXO acquisition and integration of the craft beverage portfolio. Non-operating income improved to $12.6 million, compared to a loss of $4.4 million in the previous year, driven by foreign exchange gains.

Overall, Tilray's performance in the latest quarter reflects a strategic pivot towards beverage alcohol, while navigating challenges in the cannabis sector.

About Tilray Brands, Inc.

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