Cannabis company Tilray-Brands is growing strongly

by Team Inc.

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Tilray-Brands shares spiked Wednesday after the Canadian cannabis producer reported a smaller loss for its fiscal fourth quarter than a year ago with solid sales.

Although a Canadian company, Tilray has positioned itself as a leader in the US market for cannabis for adults. However, plans were hampered by difficulties with the bank and uncertainties surrounding federal legalization.

Rise in cannabis stocks

Meanwhile, sales rose 20% to $184,2 million, up from $153,3 million in the same period last year. That came in 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 approximately $56 million in June. The sale cemented Tilray's leading position in the Canadian cannabis market. The company, which is engaged in the cultivation, production, distribution and sale of cannabis products for both medicinal and adult use, 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 largest federally legalized cannabis market in the world,” Tilray CEO Irwin Simon said in a statement. The company also plans to expand its product distribution in Canada and international markets.

Tilray also saw healthy industry growth in its beverage and distribution businesses, which generated $32,4 million and $72,6 million in revenues during the period, respectively, representing a year-over-year increase of 43% and 19%. For fiscal year 2024, the company forecasts EBITDA of $68 million to $78 million, representing growth of 11% to 27% from fiscal year 2023.

Source: (EN)

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