Tilray Brands (NASDAQ: TLRY) shares plunged almost 10% in regular trading on Tuesday after the company reported lower-than-expected second-quarter income. However, the cannabis company maintained its full-year guidance, citing robust performances in its marijuana and beverage divisions that contributed to a record-high revenue.
Tilray Brands (TLRY) has announced a 14% drop in second-quarter income, falling short of analysts’ estimates.
The company disclosed that its quarterly adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) slipped to $10.1 million for the three months ended on November 30. This figure fell below Bloomberg consensus expectations of $13.9 million. The decrease in earnings was attributed to pre-acquisition liabilities and exit costs associated with the $56 million purchase of rival Hexo Corp last year.
The acquisition of Hexo Corp in April was a strategic move by Tilray to capitalize on its Canadian peer’s lower valuation. The cannabis industry has been facing challenges since 2018, including falling market caps, primarily due to federal-level prohibitions on marijuana in the U.S., restricting access to capital for cannabis groups.
The cannabis company reported a record net revenue of $194 million, reflecting a 34% increase compared to last year. This growth was driven by solid sales in both cannabis and beverage offerings.
Tilray Brands (NASDAQ: TLRY) reaffirmed its full-year adjusted core profit forecast, ranging from $68 million to $78 million. The company also highlighted its progress toward achieving up to $35 million in annual savings related to the Hexo deal.
Mark Glenn is a financial journalist and breaking news reporter for ABBO News. Mark is known for his ability to deliver real-time news updates on market developments, mergers and acquisitions, corporate earnings reports, and regulatory changes, helping investors stay informed and make sound financial decisions.
