FY2022 net income grew 22% to $628 million compared to the prior year; On a constant currency basis, net income rose 29%
Fourth quarter net income grew 8% to $153 million compared to the year-ago period; On a constant currency basis, net income rose 14% to $163 million
The company expects to generate between $70 million and $80 million of adjusted EBITDA and positive free cash flow in its operating business units in fiscal 2023
Foundation in place for profitable and sustainable growth
- International cannabis in the fourth quarter increased 205% over the fourth quarter of the previous year; Tilray Medical leads the European medical cannabis market with a 20% market share in Germany
- Delivered $85 million in cost savings to date, exceeding the original goal on an accelerated schedule; The company now expects to deliver $100 million by the end of fiscal 2023
- Significantly strengthened balance sheet, reduced debt and closed fiscal year 2022 with $416 million in cash
- Tilray Brands Lays Groundwork for Next Cannabis Evolution Following HEXO Transaction, Positioning Company for Additional Growth Opportunities in Canada, Europe and US
NEW YORK and LEAMINGTON, Ontario, July 28, 2022 (GLOBE NEWSWIRE) — Tilray Brands, Inc. (“Tilray” or the “Company”) (Nasdaq: TLRY; TSX: TLRY), a leading global consumer and lifestyle cannabis packaged products company inspiring and empowering the global community to live their best lives, today reported financial results for the fourth quarter and full fiscal year ended May 31, 2022. All financial information in this press release is reported in U.S. dollars unless otherwise indicated. , and is presented in accordance with US generally accepted accounting principles (“GAAP”).
Irwin D. Simon, President and CEO of Tilray Brands, stated: “Over the past year, we have accelerated the optimization of our operations and improved execution against our most profitable core business opportunities in medicine, adult use, wellness and beverage-alcohol in Canada, Europe and the US At the same time, we accelerated our growth potential through tactical execution and strategic initiatives that enable accelerated revenue growth through crop improvement, brand creation and distribution. These actions should also contribute to improved bottom line performance through production efficiency and cost reduction. The result of this work is that we have driven top-line growth in our markets, significantly improved our operating performance and strengthened our balance sheet.”
He continued: “We are confident that our proactive steps to plan for the evolution of the cannabis business in each of our markets have positioned Tilray Brands to be at the forefront of the industry globally while delivering profitability and creating value for shareholders”.
Financial highlights – Fourth fiscal quarter 20221
- Net income grew 8% to $153.3 million in the fourth quarter from $142.2 million in the year-ago quarter. At constant exchange rates, net income increased by 14.5%.
- Net loss of $457.8 million in the fourth quarter compared to net income of $33.6 million in the year-ago quarter. The fiscal fourth quarter 2022 net loss includes a non-cash impairment of $395.0 million primarily affecting inventory, goodwill and other intangible assets. The impact was related to changes in market opportunities that led to a change in our strategic priorities and market conditions, including higher borrowing rates and lower exchange rates.
- Adjusted EBITDA of $11.5 million, marking the 13th consecutive quarter of positive Adjusted EBITDA.
Financial Highlights: Fiscal Year 2022
- Net income rose 22% to $628.4 million in fiscal 2022, from $513.1 million in the prior fiscal year. The increase was driven by 17.9% growth in cannabis net revenue to $237.5 million, a 150.0% increase in spirits net revenue of $71.5 million and a 928.8% increase in net welfare income to $59.6 million. At constant exchange rates, net income increased by 29%.
- The net loss of $434 million in fiscal 2022 includes the non-cash impairment of $395.0 million in the fourth quarter (discussed above).
- Adjusted EBITDA increased 17.8% to $48.0 million in fiscal 2022 from $40.8 million in the prior fiscal year.
- It ended the year with a strong balance sheet and liquidity, including cash and cash equivalents of $415.9 million.
Cost saving synergies and strengthened balance sheet
Since the closing of the Tilray-Aphria transaction, the company has delivered $85 million in cost synergies, exceeding its original target of $80 million in cost savings by the end of fiscal 2023. These synergies are due to the consolidation in key areas of cultivation. and production, purchasing cannabis and products, sales and marketing, and corporate expenses. The company has subsequently identified an additional $20 million in savings and now expects to deliver a total of $100 million in cost synergies from the transaction by the end of fiscal 2023.
Additionally, with the benefit of an additional $80 million in shared cost savings, synergies and financial benefits over the next two years associated with the HEXO transaction, management expects Tilray Brands to be free cash flow positive in its business units in fiscal year 2023.
Upside potential of the HEXO transaction
Tilray Brands’ acquisition of HEXO Corp.’s highly favorable senior secured convertible note closed on July 12, 2022, providing immediate accretion to the company and facilitating collaboration and ‘exchange of best practices that will help Tilray Brands drive continuity. international expansion and take advantage of the opportunities provided by federal legalization in the US. Additionally, due to significant operational efficiencies, the companies expect to deliver a total of $80 million in shared cost savings over the next two years.
Highlights of strategic growth actions in fiscal year 2022
United States:
- Aug ’21 – Tilray acquires majority position in modified MedMen convertible notes
- November 21: Tilray’s SweetWater brand enters the spirits category with a new ready-to-drink cocktail now available in the US
- Dec ’21 – Tilray strengthens strategic position in US with acquisition of Breckenridge Distillery
- December 21 – SweetWater Brewing announced the acquisition of Alpine Beer Company and Green Flash Brewing Company
- Jan ’22: Manitoba Harvest launches 2022 Wellness Improvement Campaign
- Feb ’22 – SweetWater Brewing Company expands its distribution in California
- February 22 – SweetWater Brewing Company continues rapid expansion with distribution rollout in Washington and Oregon
- April 22 – SweetWater Brewing Company Celebrated 25th Anniversary and Hosted 420 Music Festivals in Atlanta, Georgia with 75,000 Festival Attendees
- April 22: Manitoba Harvest enters into an exclusive partnership with Whole Foods Market
- April 22: Breckenridge Distillery Takes Two Double Golds and One Gold at the 2022 San Francisco World Spirits Competition
- April 22: Breckenridge Distillery Launches New Collector’s Art Series Featuring Denver Artist Alexandrea Pangburn
Canada:
- June ’21 – Tilray launches new medical cannabis brand, Symbios
- June 21: Tilray launches Canadian craft cannabis brand Broken Coast in the US with Broken Coast Lager
- August 21: Tilray Medical launches new medical cannabis edibles in Canada
- October ’21 – Tilray strengthens leadership position in Canada with new addition of Blair MacNeil, President of Canada
- Oct ’21 – Tilray expands distribution across Canada with Great North distributors
- December 21: Launch of Tilray Fast-Acting Oral Strips Highlights Commitment to Medical Cannabis Innovation and Patient Care
- March ’22 – Good Supply Brand expands its award-winning cannabis portfolio with Hash Bats™; A new “high impact” infused pre-roll.
- March ’22: The Solei brand launches a new wellness product for nighttime use
- April 22: The Solei brand launches the first cannabis edible available in Quebec
- April 22: Tilray Brands hosts sold-out 420 Budtender ‘Holy Smokes’ event in Toronto
- May ’22: Good Supply Brand Expands High Potency Cannabis Portfolio with Launch of Liquid Wax Vapors and Exclusive New Strains
Europe and International:
- July ’21: Tilray’s Aphria RX GmbH completes first harvest and delivery of medicinal cannabis grown in Germany
- Oct ’21 – Tilray launches medical cannabis in Luxembourg
- November ’21 – Tilray expands medical cannabis footprint in Malta
- Jan ’22 – Tilray expands offering of medical cannabis products in Australia
- February 22 – Tilray Brands consolidates its global medical offering into Tilray Medical, a complete portfolio of brands and products
- Feb ’22 – Tilray launches medical cannabis products in Malta
- March ’22 – Tilray Medical expands offer in Malta and launches first medical cannabis oil products on the market
- May 22: Announced launch of CBD lifestyle brand, POLLEN, on Amazon UK
Webcast
Tilray Brands will host a webcast to discuss these results today at 8:30 am ET. Investors may join the live webcast available on the investor section of the company’s website at www.tilray.com. The webcast will also be archived once the call is over.
About Tilray Brands
Tilray Brands, Inc. (Nasdaq: TLRY; TSX: TLRY), is a leading global cannabis lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia and Latin America that is changing people’s lives. better: one person at a time. Tilray Brands fulfills this mission by inspiring and empowering the global community to live their best lives, enhanced by moments of connection and well-being. Patients and consumers trust Tilray Brands to be the most…