Tilray Brands Reports 15% Increase in Net Revenue for Q1, Expands into Beer Industry
Cannabis company Tilray Brands has announced impressive first-quarter earnings, with net revenue reaching $177 million, reflecting a 15% increase compared to the same period last year. The company’s foray into the beer industry through acquisitions has been credited for its revenue growth.
Tilray has been actively acquiring brands outside of its core recreational cannabis business in Canada, and earlier this week, it successfully completed the acquisition of eight beer brands from Anheuser-Busch. This move further diversifies Tilray’s portfolio and paves the way for its expansion into the beer market.
The company reported that its cannabis division generated $70 million in net revenue, marking a 20% year-over-year increase. Additionally, Tilray was able to narrow its net loss to $55.9 million during the first quarter, compared to a loss of $65.8 million in the same period last year.
While Tilray is a multinational cannabis company based in Canada, it has been strategically expanding into other industries, especially the U.S. craft beer market. The company’s move into different sectors is driven by the uncertain legal environment for marijuana worldwide. CEO Irwin Simon believes that mergers and acquisitions in the beverage industry will accelerate growth and allow Tilray to broaden its footprint beyond recreational cannabis. He emphasized the need to navigate the legal complexities surrounding marijuana, particularly in key markets like the United States and Europe.
Tilray has experienced robust growth in Canada, with a 16.5% increase in cannabis revenue and a strengthened market share of 13.4%. Canada is one of the few major markets where recreational cannabis is federally legal.
Simon expressed optimism about potential legalization in the United States, stating that Tilray is well-positioned to capitalize on the opportunity. However, if legalization does not occur, the company can rely on its thriving beverage business.
In recent years, Tilray has been engaging in strategic acquisitions to tap into fast-growing markets, including craft beers and cannabis-infused beverages. Alongside the Anheuser-Busch deal, the company also acquired full ownership of Truss Beverage, a cannabis-infused drinks manufacturer, from Molson Coors Canada. The transaction details for both deals were undisclosed.
Tilray’s beverage alcohol revenue witnessed a 17% increase, reaching $24 million in the first quarter, compared to $21 million in the same period last year. The growth was attributed in part to the success of Montauk Brewing Company, a subsidiary of Tilray. The company acquired Montauk, an expanding brewer in the New York metropolitan area, in 2022.
CEO Irwin Simon hailed the company’s global diversification efforts over the past years, stating that Tilray is now ideally positioned to seize numerous opportunities across multiple industries. With the impressive earnings report and its expanding presence in the beer market, Tilray Brands continues to solidify its position as a key player in the cannabis industry.