Tilray Brands (TLRY) Q4 2024 earnings summary

Executive summary

• Achieved record financial results in FY 2024, with 26% net revenue growth to $789 million and record adjusted EBITDA of $60.5 million, driven by strong cannabis and beverage-alcohol performance.

• Net loss narrowed significantly to $222.4 million from $1.4 billion, primarily due to lower non-cash expenses.

• Strategic acquisitions in cannabis, beverage, and wellness segments, including Hexo, Redecan, Truss Beverages, and eight ABI craft brands, strengthened market position across North America and Europe.

• Operates in over 20 countries with a diversified portfolio of 44 consumer brands across cannabis, beverages, spirits, and wellness.

• Reduced net convertible debt by approximately $300 million, improving the balance sheet.

Financial highlights

• Net revenue grew 26% year-over-year to $788.9 million; beverage alcohol revenue up 113%, cannabis up 24%, wellness up 5%.

• Gross profit increased 52% to $223.4 million; gross margin rose to 28% from 23% last year.

• Adjusted EBITDA grew 3% to $60.5 million; adjusted net income was $6.2 million, up from $0.4 million; net loss per share improved to $(0.33) from $(2.35).

• Adjusted free cash flow was $6.6 million; cash and marketable securities totaled $260.5 million at year-end.

• Q4 net revenue rose 25% to $229.9 million; Q4 gross profit was $82.4 million with a 36% gross margin.

Outlook and guidance

• Fiscal 2025 net revenue guidance: $950 million–$1 billion, with mid-single digit organic growth expected.

• Double-digit organic growth anticipated in cannabis and beverage segments; low to mid-single digit growth in wellness; no growth expected in CC Pharma distribution.

• Focus on improving gross margins in beverage alcohol through integration and operational efficiencies.

• CapEx expected to remain around $20–$30 million; no significant increase in working capital anticipated.

• Management expects continued growth through diversification, innovation, and further integration of recent acquisitions.