AUS
NZ
UK
CA
USA
IND
Tilray Brands (TLRY) saw a notable increase in its share price on Tuesday following the release of its fourth-quarter financial results, which exceeded analysts' expectations on both revenue and earnings. The company’s shares initially surged by as much as 17.5% and were up 10.1% by 3:53 p.m.
In Q4, Tilray reported revenue of $229.9 million, marking a 25% increase from the same period last year and surpassing Wall Street's consensus estimate of $227 million. This growth was largely driven by Tilray’s alcoholic beverage segment, which saw a remarkable 137% increase in sales to $76.7 million. This segment’s performance outpaced the company's cannabis revenue of $71.9 million.
The company’s expansion into the alcoholic beverage market, including its acquisition of eight beer brands from Anheuser-Busch last year, has positioned Tilray as the fifth-largest craft brewer in the U.S., contributing significantly to its revenue boost.
Strong Fourth-Quarter Earnings
Tilray’s fourth-quarter earnings were equally impressive. The company reported adjusted earnings per share (EPS) of $0.04, far exceeding analysts' consensus estimate of a $0.02 loss. This positive earnings surprise reflects the company’s successful execution of its growth strategies and operational efficiencies.
Financial Improvements and Debt Reduction
Management also highlighted key improvements in Tilray’s financial health. The company reduced its net convertible debt by $300 million during the fiscal year, contributing to its improved financial stability. Additionally, Tilray’s adjusted gross profit for fiscal 2024 was reported at $235.6 million.
Despite finishing fiscal 2024 with a net loss of $224.4 million, this represents a substantial improvement compared to the net loss of $1.4 billion in the previous year. The reduction in losses underscores Tilray’s progress in managing costs and improving operational efficiency.
