As of the end of the fourth quarter, Tilray Brands’ net loss was $457.8 million, or $434 million for the entire fiscal year of 2022. A $395 million non-cash impairment charge “primarily impacting inventory, goodwill, and other intangible assets” is included in the quarterly and yearly net loss.
U.S. dollars are the currency of choice for Tilray’s financial reporting. Tilray CEO Irwin Simon blamed the impairment charge on “both market conditions and the work that we have done to optimize our operations.” For its 2024 fiscal year-end, the company now expects to generate up to $4 billion in income “depending on federal (cannabis) legalization in the United States and Germany,” according to Simon.
There was a 22.5 per cent increase in Tilray’s net revenue for the 2022 fiscal year to $628.4 million compared to the previous fiscal year. According to Simon, Tilray intends to generate free cash flow and save $100 million as a result of its megamerger with Aphria by the end of its fiscal year 2023.
There have already been $85 million in cost savings as a result of the acquisition. “To establish ourselves as a market leader to broadly legalize (the) adult-use cannabis market in Germany, and seize a sizable portion of that market,” Tilray’s chief strategy officer and head of international, Denise Faltischek, said.
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“All of Europe could legalize medical-use cannabis within the next two years or sooner, with certain countries legalizing adult-use cannabis shortly thereafter,” Faltischek said of Tilray. Canada’s cannabis industry is “characterized by an abundance of cannabis, unreasonable regulatory barriers, and punitive excise taxation exacerbated by price compression,” Tilray’s Canadian business president Blair MacNeil stated.
As a result of “challenging industry conditions, (stock-keeping unit) rationalizations and the discontinuation of partner brands,” MacNeil said Tilray’s Canadian adult-use market share decreased from 10.2 per cent to 8.3 per cent in the preceding quarter. In contrast, MacNeil said Tilray expects that trend to change as a consequence of changes to its cannabis flower portfolio.
According to Tilray’s fourth-quarter adjusted EBITDA report, the company made $11.5 million, a 13.9% rise over the previous quarter’s adjusted EBITDA. Tilray’s net revenue for the fourth quarter increased by 0.9 per cent to $153.3 million.
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Its yearly net sales of $628.4 million comprised 38 per cent cannabis revenue, 42 per cent distribution revenue, 11 per cent beverage alcohol revenue, and 9 per cent wellness revenue. ‘ Tilray had $415.9 million in cash and cash equivalents at the end of the third quarter on March 31.
The company’s stock is listed on the Nasdaq and the Toronto Stock Exchange as TLRY, respectively.