Net Loss 2022
Canadian cannabis and alcohol company Tilray Brands posted a $457.8 million net loss for its fourth quarter and a $434 million net loss for its 2022 financial year.
The quarterly and annual net loss includes a $395 million noncash impairment charge “primarily impacting inventory, goodwill, and other intangible assets.”
Tilray reports its earnings in U.S. dollars.
On a Thursday call with analysts and investors, Tilray CEO Irwin Simon attributed the impairment charge to “both market conditions and therefore the work that we have done to optimize our operations.”
Simon said the corporate now aims to generate up to $4 billion in revenue by the end of its 2024 fiscal year, “depending upon federal (cannabis) legalization within the U.S. and Germany.”
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Tilray’s net revenue for the 2022 financial year was $628.4 million, representing a growth of twenty-two .5% over the previous financial year.
By the top of Tilray’s 2023 fiscal year, Simon said the corporate expects to be free-cash-flow positive and achieve $100 million in cost savings following its megamerger with Aphria.
The company said it has already realized $85 million in cost synergies related to that merger.
In Europe, Tilray’s chief strategy officer and head of international, Denise Faltischek, said the corporate expects “to establish ourselves as a market leader to legalize broadly (the) adult-use cannabis market in Germany and seize a large portion of that market.”
Faltischek said Tilray believes “all of Europe could legalize medical-use cannabis within the subsequent two years or sooner, with certain countries legalizing adult-use shortly after that.”
Blair MacNeil, president of Tilray’s Canadian business, said the domestic cannabis market is challenging, “characterized by an oversupply of cannabis, unreasonable regulatory barriers, and punitive excise taxation exacerbated by price compression.”
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MacNeil said Tilray’s Canadian adult-use market share declined from 10.2% to 8.3% within the previous quarter, citing “challenging industry conditions, (stock-keeping unit) rationalizations and discontinuation of partner brands.”
However, MacNeil said Tilray believes that trend will reverse because of improvements to its cannabis flower portfolio.
Tilray’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the fourth quarter were $11.5 million, a 13.9% increase over the previous quarter’s adjusted EBITDA.
Net revenue for the fourth quarter grew to $153.3 million, a rise of 0.9% over Tilray’s previous quarter.
The company’s annual net revenue of $628.4 million comprised 38% cannabis revenue, 42% distribution revenue, 11% beverage alcohol revenue, and 9% wellness revenue.
Tilray reported cash and cash equivalents worth $415.9 million at the top of the quarter on March 31.
The company’s shares trade as TLRY on the Nasdaq and Toronto stock market.
