• Tilray Brands Reports Record Financial Results, Achieves 26% Net Revenue Growth

    Source: Nasdaq GlobeNewswire / 29 Jul 2024 16:05:57   America/New_York

    Record Fiscal 2024 Gross Profit

    Reduced Net Convertible Debt by ~$300 Million in Fiscal 2024

    Fiscal 2024 Net Revenue Reaches $789 Million, Led by Cannabis Net Revenue of $273 Million and Beverage-Alcohol Net Revenue of $202 Million

    Successfully Executing on Diversified Lifestyle Business Strategy;
    Tilray Cannabis, Tilray Beverages, Tilray Spirits and Tilray Wellness

    NEW YORK and LEAMINGTON, Ontario, and NEÜMUNSTER, Germany, July 29, 2024 (GLOBE NEWSWIRE) -- Tilray Brands, Inc. (“Tilray”, “our”, “we” or the “Company”) (Nasdaq: TLRY; TSX: TLRY), a global lifestyle consumer packaged goods company elevating lives through moments of connection, today reported financial results for its fourth quarter and fiscal year ended May 31, 2024.

    Irwin D. Simon, Chairman and Chief Executive Officer, stated, “Tilray Brands is leading the convergence of cannabis, beverages, and wellness on a global scale. In Fiscal 2024, the Company achieved remarkable growth across its businesses, with a 26% increase in net revenue over the prior year, record-breaking performance in gross profit and adjusted EBITDA, and generated positive adjusted free cash flow for the fiscal year. We have also significantly reduced our net convertible debt by ~$300 million and surpassed our cost-savings synergy target, which has strengthened our balance sheet. These results were driven by our successful execution of our diversification strategy, which we started in 2020, and the hard work of our team.”

    Mr. Simon continued, “Tilray Brands also successfully completed three acquisitions - the eight iconic craft brands from Anheuser-Busch Companies, LLC., HEXO Corp., and Truss Beverage Co. These acquisitions were strategic in fortifying Tilray’s house of brands, strengthening our operations, and positioning the Company as a leader across several industries and regions. In the U.S., Tilray Beverages is the 5th1 largest craft brewer and Tilray Wellness is the leader in hemp products. In Canada, Tilray Cannabis holds the #1 recreational cannabis market share, while in Europe, it is the market leader in medical cannabis. Leading the convergence of cannabis, beverages, and wellness, Tilray Brands is poised to continue to disrupt the CPG industry globally.”

    Financial Highlights – 2024 Fiscal Fourth Quarter

    • Net revenue increased 25% to $229.9 million in the fourth quarter compared to $184.2 million in the prior year quarter.
    • Gross profit was $82.4 million in the fourth quarter compared to $67.2 million in the prior year quarter. Gross margin and adjusted gross margin2 were both 36%.
    • Beverage-alcohol net revenue increased 137% to $76.7 million in the fourth quarter from $32.4 million in the prior year quarter. The increase was led by new product innovation and contributions from our Craft Acquisition brands.
      • Beverage-alcohol gross profit increased 146% to $40.8 million in the fourth quarter from $16.6 million in the prior year quarter. Adjusted beverage-alcohol gross profit increased 130% to $41.0 million from $17.8 million in the prior year quarter.
      • Beverage-alcohol gross margin increased to 53% in the fourth quarter compared to 51% in the prior year quarter and adjusted gross beverage alcohol margin2 was 53% in the fourth quarter compared to 55% in the prior year quarter.
    • Cannabis net revenue increased 12% to $71.9 million in the fourth quarter compared to $64.4 million in the prior year quarter, driven in part by the acquisitions of HEXO and Truss.
      • Cannabis gross profit and adjusted gross profit2 decreased to $28.8 million in the fourth quarter from $39.5 million in the prior year quarter.
      • Cannabis gross margin and adjusted gross margin2 were 40% in the fourth quarter compared to 61% in the prior year quarter. A substantial portion of the decrease is a result of the completion of the HEXO advisory services agreement in Q1 fiscal 2024.
    • Distribution net revenue was $65.6 million in the fourth quarter compared to $72.6 million in the prior year quarter. The decrease was driven by management’s focus on discontinuing less profitable product lines demonstrated by Distribution’s gross margin increasing to 12% in the fourth quarter compared to 9% in the prior year quarter.
    • Wellness net revenue increased 6% to $15.7 million in the fourth quarter from $14.8 million in the prior year quarter.
    • Net loss narrowed to ($15.4) million in the fourth quarter compared to net loss of ($119.8) million in the prior year quarter, almost all of which is a result of non-cash expenses. Adjusted net income2 was $35.1 million in the fourth quarter compared to a loss of ($11.8) million in the prior year quarter
    • Net loss per share narrowed to ($0.04) compared to ($0.15) in the prior year quarter. Adjusted net income (loss) per share2 was $0.04 compared to a loss of ($0.02) in the prior year quarter.
    • Adjusted EBITDA2 increased 37% to $29.5 million in the fourth quarter compared to $21.5 million in the prior year quarter.

    Financial Highlights – 2024 Fiscal Year

    • Net revenue increased 26% to $788.9 million in fiscal 2024 compared to $627.1 million in the prior fiscal year.
    • Gross profit was $223.4 million, while adjusted gross profit2 increased 14% to $235.6 million in fiscal 2024. Gross margin was 28% and adjusted gross margin2 was 30%.
    • Beverage-alcohol net revenue increased 113% to $202.1 million in fiscal 2024 from $95.1 million in the prior fiscal year.
      • Beverage-alcohol gross profit increased 91% to $88.6 million in fiscal 2024 from $46.3 million in the prior fiscal year. Adjusted beverage-alcohol gross profit2 increased to $93.2 million from $50.8 million in the prior fiscal year.
      • Beverage-alcohol gross margin was 44% in fiscal 2024 compared to 49% in the prior fiscal year and adjusted gross beverage alcohol margin2 was 46% in fiscal 2024 compared to 53% in the prior fiscal year, reflecting lower contribution margins from the acquired brands.
    • Cannabis net revenue increased 24% to $272.8 million in fiscal 2024 compared to $220.4 million in the prior fiscal year, reflecting the acquisitions of HEXO and Truss as well as growth across international markets.
      • Cannabis gross profit increased to $90.2 million in fiscal 2024 from $57.7 million in the prior fiscal year. Adjusted gross profit2 was $97.8 million compared to $112.7 million in the prior fiscal year as a result of the advisory service agreement concluding in Q1 fiscal 2024.
      • Cannabis gross margin was 33% in fiscal 2024 compared to 26% in the prior fiscal year. Adjusted cannabis gross margin2 was 36% compared to 51% in the prior fiscal year.
    • Distribution net revenue and gross margin remained consistent at ~$259 million and 11% in fiscal 2024 compared to the prior fiscal year.
    • Wellness net revenue increased 5% to $55.3 million in fiscal 2024 from $52.8 million in the prior fiscal year.
      • Wellness gross margin was 30% in fiscal 2024 compared to 29% in the prior fiscal year.
    • Net loss decreased to ($222.4) million in fiscal 2024 compared to net loss of $(1.4) billion in the prior fiscal year, almost all of which is a result of non-cash expenses. Net loss per share narrowed to $(0.33) and improved compared to a net loss of $(2.35) in the prior fiscal year.
    • Adjusted net income2 increased to $6.2 million in fiscal 2024 compared to adjusted net income2 of $0.4 million in the prior fiscal year. Adjusted net income per share2 narrowed to $0.01 compared to $0.00 in the prior fiscal year.
    • Adjusted EBITDA2 increased to $60.5 million in fiscal 2024 compared to $58.7 million in the prior fiscal year.
    • Strong financial liquidity position of ~$260.5 million, consisting of $228.3 million in cash and $32.2 million in marketable securities.
    • Reduced outstanding principal of the net convertible debt by $291.0 million compared to the previous fiscal year.
    • Net cash used in operating activities was $(30.9) million in fiscal 2024 compared to $7.9 million net cash from operating activities in the prior year.
    • Adjusted free cash flow2 of $6.6 million in fiscal 2024 compared to $19.1 million in the prior year.

    Live Audio Webcast

    Tilray Brands will host a webcast to discuss these results today at 4:30 p.m. Eastern Time. Investors may join the live webcast available on the Investors section of the Company’s website at www.Tilray.com. A replay will be available and archived on the Company’s website.

    About Tilray Brands

    Tilray Brands, Inc. (“Tilray”) (Nasdaq: TLRY; TSX: TLRY), is a leading global lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is leading as a transformative force at the nexus of cannabis, beverage, wellness, and entertainment, elevating lives through moments of connection. Tilray’s mission is to be a leading premium lifestyle company with a house of brands and innovative products that inspire joy, wellness and create memorable experiences. Tilray’s unprecedented platform supports over 40 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and craft beverages.

    For more information on how we are elevating lives through moments of connection, visit Tilray.com and follow @Tilray on all social platforms.

    Cautionary Statement Concerning Forward-Looking Statements

    Certain statements in this press release constitute forward-looking information or forward-looking statements (together, “forward-looking statements”) under Canadian securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be subject to the “safe harbor” created by those sections and other applicable laws. Forward-looking statements can be identified by words such as “forecast,” “future,” “should,” “could,” “enable,” “potential,” “contemplate,” “believe,” “anticipate,” “estimate,” “plan,” “expect,” “intend,” “may,” “project,” “will,” “would” and the negative of these terms or similar expressions, although not all forward-looking statements contain these identifying words. Certain material factors, estimates, goals, projections or assumptions were used in drawing the conclusions contained in the forward-looking statements throughout this communication.

    Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things: the Company’s ability to become a leading lifestyle consumer packaged goods company; the Company’s ability to become a leading beverage alcohol Company; the Company’s ability to achieve long term profitability; the Company’s ability to achieve operational scale, market share, distribution, profitability and revenue growth in particular business lines and markets; the Company’s ability to successfully achieve revenue growth, margin and profitability improvements, production and supply chain efficiencies, synergies and cost savings; the Company’s expected revenue growth, sales volume, profitability, synergies and accretion related to any of its acquisitions; expected opportunities in the U.S., including upon U.S. federal cannabis legalization or rescheduling; the Company’s anticipated investments and acquisitions, including in organic and strategic growth, partnership efforts, product offerings and other initiatives; and the Company’s ability to commercialize new and innovative products.

    Many factors could cause actual results, performance or achievement to be materially different from any forward-looking statements, and other risks and uncertainties not presently known to the Company or that the Company deems immaterial could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. For a more detailed discussion of these risks and other factors, see the most recently filed annual information form of the Company and the Annual Report on Form 10-K (and other periodic reports filed with the SEC) of the Company made with the SEC and available on EDGAR. The forward-looking statements included in this communication are made as of the date of this communication and the Company does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.

    Use of Non-U.S. GAAP Financial Measures

    This press release and the accompanying tables include non-GAAP financial measures, including Adjusted gross margin (consolidated and for each of our reporting segments), Adjusted gross profit (consolidated and for each of our reporting segments), Adjusted EBITDA, Adjusted net income (loss), Adjusted net income (loss) per share , free cash flow, adjusted free cash flow, constant currency presentations of revenue and cash and marketable securities. Management believes that the non-GAAP financial measures presented provide useful additional information to investors about current trends in the Company's operations and are useful for period-over-period comparisons of operations. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read only in connection with the Company's Consolidated Statements of Operations and Cash Flows presented in accordance with GAAP.

    Certain forward-looking non-GAAP financial measures included in this press release are not reconciled to the comparable forward-looking GAAP financial measures. The Company is not able to reconcile these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts because the Company is unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures but would not impact the non-GAAP measures. Such items may include litigation and related expenses, transaction costs, impairments, foreign exchange movements and other items. The unavailable information could have a significant impact on the Company's GAAP financial results.

    The Company believes presenting net sales at constant currency provides useful information to investors because it provides transparency to underlying performance in the Company's consolidated net sales by excluding the effect that foreign currency exchange rate fluctuations have on period-to-period comparability given the volatility in foreign currency exchange markets. To present this information for historical periods, current period net sales for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average monthly exchange rates in effect during the corresponding period of the prior fiscal year, rather than at the actual average monthly exchange rate in effect during the current period of the current fiscal year. As a result, the foreign currency impact is equal to the current year results in local currencies multiplied by the change in average foreign currency exchange rate between the current fiscal period and the corresponding period of the prior fiscal year.

    Adjusted EBITDA is calculated as net income (loss) before income tax benefits, net; interest expense, net; non-operating income (expense), net; amortization; stock-based compensation; change in fair value of contingent consideration; purchase price accounting step-up; impairments; inventory valuation allowance; Other than temporary change in fair value of convertible notes receivable; facility start-up and closure costs; litigation costs; restructuring costs, transaction (income) costs and (Gain) loss on sale of capital assets – non-operating facility. A reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release. Historically, we have included lease expenses for leases that were treated differently under IFRS 16 and ASC 842 in the calculation of adjusted EBITDA, aiming to align our definition with industry peers reporting under IFRS. The decision to include these lease expenses in the Company's definition of adjusted EBITDA was based on our efforts to maintain comparability with peers. However, as the Company has continued to diversify, particularly with strategic acquisitions such as the newly acquired beverage alcohol business portfolio, this comparison is no longer relevant, accordingly, we are no longer including this adjustment. Had the Company continued to include lease expenses that were treated differently under IFRS 16 and ASC 842, the impact to adjusted EBITDA would have been $4.6 million for the year ended May 31, 2024. In comparison, under the previous reconciliation, the impact to adjusted EBITDA would have been $2.8 million and $3.1 for the years ended May 31, 2023, and May 31, 2022, respectively.

    Adjusted net income (loss) is calculated as net loss attributable to stockholders of Tilray Brands, Inc., less; non-operating income (expense), net; amortization; stock-based compensation; change in fair value of contingent consideration; impairments; inventory valuation allowance; Other than temporary change in fair value of convertible notes receivable, attributable to stockholders of Tilray Brands, Inc. facility start-up and closure costs; litigation costs; restructuring costs and transaction (income) costs. A reconciliation of Adjusted net income (loss) to net loss attributable to stockholders of Tilray Brands, Inc., the most directly comparable GAAP measure, has been included below in this press release.

    Adjusted net income (loss) per share is calculated as net loss attributable to stockholders of Tilray Brands, Inc., net; non-operating income (expense), net; amortization; stock-based compensation; change in fair value of contingent consideration; facility start-up and closure costs; litigation costs; restructuring costs and transaction (income) costs, divided by weighted average number of common shares outstanding. A reconciliation of Adjusted net income (loss) per share to net loss attributable to stockholders of Tilray Brands, Inc., the most directly comparable GAAP measure, has been included below in this press release. Adjusted net income (loss) per share is not calculated in accordance with GAAP and should not be considered an alternative for GAAP net income (loss) per share or as a measure of liquidity.

    Adjusted gross profit (consolidated and for each of our reporting segments), is calculated as gross profit adjusted to exclude the impact of purchase price accounting valuation step-up and inventory valuation adjustments. A reconciliation of Adjusted gross profit, excluding purchase price accounting valuation step-up and inventory valuation adjustments, to gross profit, the most directly comparable GAAP measure, has been provided in the financial statement tables included above in this press release. Adjusted gross margin (consolidated and for each of our reporting segments), excluding purchase price accounting valuation step-up and inventory valuation adjustments, is calculated as revenue less cost of sales adjusted to add back amortization of inventory step-up and inventory valuation adjustments, divided by revenue. A reconciliation of Adjusted gross margin, excluding purchase price accounting valuation step-up and inventory valuation allowance, to gross margin, the most directly comparable GAAP measure, has been provided in the financial statement tables included above in this press release.

    Free cash flow is comprised of two GAAP measures which are net cash flow provided by (used in) operating activities less investments in capital and intangible assets, net. A reconciliation of net cash flow provided by (used in) operating activities to free cash flow, the most directly comparable GAAP measure, has been provided in the financial statement tables included above in this press release. Adjusted free cash flow is comprised of two GAAP measures which are net cash flow provided by (used in) operating activities less investments in capital and intangible assets, net, and the exclusion of growth CAPEX from investments in capital and intangible assets, net, which excludes the amount of capital expenditures that are considered to be associated with growth of future operations rather than to maintain the existing operations of the Company, and excludes our integration costs related to HEXO and the Craft Acquisition and the cash income taxes related to Aphria Diamond to align with management’s prescribed guidance. A reconciliation of net cash flow provided by (used in) operating activities to adjusted free cash flow, the most directly comparable GAAP measure, has been provided in the financial statement tables included above in this press release.

    Constant currency presentations of revenue are used to normalize the effects of foreign currency. To present this information for historical periods, current period net sales for entities reporting in currencies other than the U.S. Dollar are translated into U.S. Dollars at the average monthly exchange rates in effect during the corresponding period of the prior fiscal year rather than at the actual average monthly exchange rate in effect during the current period of the current fiscal year. As a result, the foreign currency impact is equal to the current year results in local currencies multiplied by the change in average foreign currency exchange rate between the current fiscal period and the corresponding period of the prior fiscal year. A reconciliation of prior year revenue to constant currency revenue the most directly comparable GAAP measure, has been provided in the financial statement tables included above in this press release.

    Cash and marketable securities are comprised of two GAAP measures, cash and cash equivalents added to marketable securities. The Company’s management believes that this presentation provides useful information to management, analysts and investors regarding certain additional financial and business trends relating to its short-term liquidity position by combing these two GAAP metrics.

    Contacts:
    Media:
    news@tilray.com

    Investors:
    Investors@tilra.com

    1 Circana volume sales L26W ending 7/7/24
    2 Adjusted EBITDA, Adjusted gross margin, Adjusted net income, adjusted gross profit and adjusted gross margin for each of our segments, and Adjusted net income (loss) are non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures to GAAP Measures” below for a reconciliation of these Non-GAAP Measures to our most comparable GAAP measure.

           
    Consolidated Statements of Financial Position      
      May 31, May 31,  
    (in thousands of US dollars) 2024 2023  
    Assets      
    Current assets      
    Cash and cash equivalents $228,340  $206,632   
    Marketable securities  32,182   241,897   
    Accounts receivable, net  101,695   86,227   
    Inventory  252,087   200,551   
    Prepaids and other current assets  31,332   37,722   
    Assets held for sale  32,074   —   
    Total current assets  677,710   773,029   
    Capital assets  558,247   429,667   
    Operating lease, right-of-use assets  16,101   5,941   
    Intangible assets  915,469   973,785   
    Goodwill  2,008,884   2,008,843   
    Interest in equity investees  —   4,576   
    Long-term investments  7,859   7,795   
    Convertible notes receivable  32,000   103,401   
    Other assets  5,395   222   
    Total assets $4,221,665  $4,307,259   
    Liabilities      
    Current liabilities      
    Bank indebtedness $18,033  $23,381   
    Accounts payable and accrued liabilities  241,957   190,682   
    Contingent consideration  15,000   16,218   
    Warrant liability  3,253   1,817   
    Current portion of lease liabilities  5,091   2,423   
    Current portion of long-term debt  15,506   24,080   
    Current portion of convertible debentures payable  330   174,378   
    Total current liabilities  299,170   432,979   
    Long - term liabilities      
    Contingent consideration  —   10,889   
    Lease liabilities  60,422   7,936   
    Long-term debt  158,352   136,889   
    Convertible debentures payable  129,583   221,044   
    Deferred tax liabilities, net  130,870   167,364   
    Other liabilities  90   215   
    Total liabilities  778,487   977,316   
    Stockholders' equity      
    Common stock ($0.0001 par value; 1,198,000,000 common shares authorized; 831,925,373 and 656,655,455 common shares issued and outstanding, respectively)  83   66   
    Preferred shares ($0.0001 par value; 10,000,000 preferred shares authorized; nil and nil preferred shares issued and outstanding, respectively)  —   —   
    Additional paid-in capital  6,146,810   5,777,743   
    Accumulated other comprehensive loss  (43,499)  (46,610)  
    Accumulated Deficit  (2,660,488)  (2,415,507)  
    Total Tilray Brands, Inc. stockholders' equity  3,442,906   3,315,692   
    Non-controlling interests  272   14,251   
    Total stockholders' equity  3,443,178   3,329,943   
    Total liabilities and stockholders' equity $4,221,665  $4,307,259   
           


    Condensed Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss)           
     For the three months
    ended May 31,    		 Change % 
    Change    		 For the twelve months
    ended May 31,    		 Change % 
    Change
    (in thousands of U.S. dollars, except for per share data) 2024   2023  2024 vs. 2023  2024   2023  2024 vs. 2023
    Net revenue$229,882  $184,188  $45,694  25% $788,942  $627,124  $161,818  26%
    Cost of goods sold 147,532   117,025   30,507  26%  565,591   480,164   85,427  18%
    Gross profit 82,350   67,163   15,187  23%  223,351   146,960   76,391  52%
    Operating expenses:               
    General and administrative 43,589   47,774   (4,185) (9)%  167,358   165,159   2,199  1%
    Selling 12,796   9,048   3,748  41%  37,233   34,840   2,393  7%
    Amortization 19,052   21,617   (2,565) (12)%  84,752   93,489   (8,737) (9)%
    Marketing and promotion 12,999   7,800   5,199  67%  41,933   30,937   10,996  36%
    Research and development 394   180   214  119%  635   682   (47) (7)%
    Change in fair value of contingent consideration 1,000   292   708  242%  (15,790)  855   (16,645) (1,947)%
    Impairments —   —   —  NM  —   934,000   (934,000) (100)%
    Other than temporary change in fair value of convertible notes receivable  —   64,954   (64,954) (100)%  42,681   246,330   (203,649) (83)%
    Litigation costs, net of recoveries (188)  1,465   (1,653) (113)%  8,251   (505)  8,756  (1,734)%
    Restructuring costs 6,833   (1,482)  8,315  (561)%  15,581   9,245   6,336  69%
    Transaction costs (income), net 2,401   5,495   (3,094) (56)%  15,462   1,613   13,849  859%
    Total operating expenses 98,876   157,143   (58,267) (37)%  398,096   1,516,645   (1,118,549) (74)%
    Operating loss (16,526)  (89,980)  73,454  (82)%  (174,745)  (1,369,685)  1,194,940  (87)%
    Interest expense, net (9,456)  (5,027)  (4,429) 88%  (36,433)  (13,587)  (22,846) 168%
    Non-operating income (expense), net (17,022)  (16,680)  (342) 2%  (37,842)  (66,909)  29,067  (43)%
    Loss before income taxes (43,004)  (111,687)  68,683  (61)%  (249,020)  (1,450,181)  1,201,161  (83)%
    Income tax (recovery) expense (27,629)  8,132   (35,761) (440)%  (26,616)  (7,181)  (19,435) 271%
    Net loss$(15,375) $(119,819) $104,444  (87)% $(222,404) $(1,443,000)  1,220,596  (85)%
    Net loss per share - basic and diluted$(0.04) $(0.15) $0.11  (73)% $(0.33) $(2.35) $2.02  (86)%
                    


    Condensed Consolidated Statements of Cash Flows         
      For the twelve months     
      Ended May 31, Change % Change 
    (in thousands of US dollars)  2024   2023  2024 vs. 2023 
    Cash provided by (used in) operating activities:         
    Net loss $(222,404) $(1,443,000) $1,220,596  (85)% 
    Adjustments for:         
    Deferred income tax recovery  (38,872)  (31,953)  (6,919) 22% 
    Unrealized foreign exchange (gain) loss  3,756   17,768   (14,012) (79)% 
    Amortization  126,913   130,149   (3,236) (2)% 
    Gain on sale of capital assets  (4,198)  (48)  (4,150) 8,646% 
    Accretion of convertible debt discount  14,459   3,848   10,611  276% 
    Inventory valuation write down  —   55,000   (55,000) (100)% 
    Impairments  —   934,001   (934,001) (100)% 
    Other than temporary change in fair value of convertible notes receivable   42,681   246,330   (203,649) (83)% 
    Other non-cash items  13,626   11,406   2,220  19% 
    Stock-based compensation  31,769   39,595   (7,826) (20)% 
    Loss on long-term investments & equity investments  4,855   2,190   2,665  122% 
    (Gain) loss on derivative instruments  21,172   27,365   (6,193) (23)% 
    Change in fair value of contingent consideration  (15,790)  855   (16,645) (1,947)% 
    Change in non-cash working capital:         
    Accounts receivable  (6,575)  4,168   (10,743) (258)% 
    Prepaids and other current assets  13,069   3,122   9,947  319% 
    Inventory  (15,578)  (12,934)  (2,644) 20% 
    Accounts payable and accrued liabilities  212   20,044   (19,832) (99)% 
    Net cash provided by (used in) operating activities  (30,905)  7,906   (38,811) (491)% 
    Cash provided by (used in) investing activities:         
    Investment in capital and intangible assets  (29,249)  (20,800)  (8,449) 41% 
    Proceeds from disposal of capital and intangible assets  8,509   4,304   4,205  98% 
    Disposal (purchase) of marketable securities, net  209,715   (241,897)  451,612  (187)% 
    Business acquisitions, net of cash acquired  (60,626)  (26,718)  (33,908) 127% 
    Net cash provided by (used in) investing activities  128,349   (285,111)  413,460  (145)% 
    Cash provided by (used in) financing activities:         
    Share capital issued, net of cash issuance costs  8,619   129,593   (120,974) (93)% 
    Shares effectively repurchased for employee withholding tax  —   (1,189)  1,189  (100)% 
    Proceeds from long-term debt  32,621   1,288   31,333  2,433% 
    Repayment of long-term debt  (22,402)  (21,336)  (1,066) 5% 
    Proceeds from convertible debt  21,553   145,052   (123,499) (85)% 
    Repayment of convertible debt  (107,330)  (187,394)  80,064  (43)% 
    Repayment of lease liabilities  (2,900)  (1,114)  (1,786) 160% 
    Net increase (decrease) in bank indebtedness  (5,348)  5,258   (10,606) (202)% 
    Net cash provided by (used in) financing activities  (75,187)  70,158   (145,345) (207)% 
    Effect of foreign exchange on cash and cash equivalents  (549)  (2,230)  1,681  (75)% 
    Net decrease in cash and cash equivalents  21,708   (209,277)  230,985  (110)% 
    Cash and cash equivalents, beginning of period  206,632   415,909   (209,277) (50)% 
    Cash and cash equivalents, end of period $228,340  $206,632  $21,708  11% 
              


    Net Revenue by Operating Segment                
                   
    (In thousands of U.S. dollars) For the three
    months
    ended
    May 31, 2024    		 % of Total Revenue  For the three
    months
    ended
    May 31, 2023    		 % of Total Revenue  For the
    year ended
    May 31, 2024    		 % of Total Revenue  For the
    year ended
    May 31, 2023    		 % of Total Revenue
    Beverage alcohol business $76,739  33% $32,404  18% $202,094  25% $95,093  15%
    Cannabis business  71,919  31%  64,413  35%  272,798  35%  220,430  35%
    Distribution business  65,566  29%  72,612  39%  258,740  33%  258,770  41%
    Wellness business  15,658  7%  14,759  8%  55,310  7%  52,831  9%
    Total net revenue $229,882  100% $184,188  100% $788,942  100% $627,124  100%
                     
                     
    Net Revenue by Operating Segment in Constant Currency              
                     
      For the
    three months
    ended
    May 31, 2024    		   For the
    three months
    ended
    May 31, 2023    		   For the
    year ended
    May 31, 2024    		   For the
    year ended
    May 31, 2023    		  
    (In thousands of U.S. dollars) as reported
    in
    constant
    currency    		 % of
    Total
    Revenue     		 as reported
    in
    constant
    currency    		 % of
    Total
    Revenue     		 as reported
    in
    constant
    currency    		 % of
    Total
    Revenue     		 as reported
    in
    constant
    currency    		 % of
    Total
    Revenue
    Beverage alcohol business $76,739  33% $32,404  18% $202,094  25% $95,093  15%
    Cannabis business  72,577  31%  64,413  35%  274,763  35%  220,430  35%
    Distribution business  69,209  29%  72,612  39%  259,671  33%  258,770  41%
    Wellness business  15,689  7%  14,759  8%  55,533  7%  52,831  9%
    Total net revenue $234,214  100% $184,188  100% $792,061  100% $627,124  100%
                     
                     
    Net Cannabis Revenue by Market Channel                
                   
    (In thousands of U.S. dollars) For the
    three months
    ended
    May 31, 2024    		 % of
    Total
    Revenue    		 For the
    three months
    ended
    May 31, 2023    		 % of
    Total
    Revenue    		 For the
    year ended
    May 31, 2024    		 % of
    Total
    Revenue    		 For the
    year ended
    May 31, 2023    		 % of
    Total
    Revenue
    Revenue from Canadian medical cannabis $6,418  9% $6,080  9% $25,211  9% $25,000  11%
    Revenue from Canadian adult-use cannabis  61,496  86%  58,256  90%  266,846  98%  214,319  97%
    Revenue from wholesale cannabis  12,992  18%  750  1%  25,340  9%  1,436  1%
    Revenue from international cannabis  13,110  18%  15,725  24%  53,295  20%  43,559  20%
    Less excise taxes  (22,097) (31)%  (16,398) (24)%  (97,894) (36)%  (63,884) (29)%
    Total $71,919  100% $64,413  100% $272,798  100% $220,430  100%
                     
                     
    Net Cannabis Revenue by Market Channel in Constant Currency
     
      For the
    three months
    ended
    May 31, 2024    		   For the
    three months
    ended
    May 31, 2024    		   For the
    year ended
    May 31, 2024    		   For the
    year ended
    May 31, 2024    		  
    (In thousands of U.S. dollars) as
    reported
    in
    constant
    currency    		 % of
    Total
    Revenue     		 as
    reported
    in
    constant
    currency    		 % of
    Total
    Revenue     		 as
    reported
    in
    constant
    currency    		 % of
    Total
    Revenue     		 as
    reported
    in
    constant
    currency    		 % of
    Total
    Revenue
    Revenue from Canadian medical cannabis $6,447  9% $6,080  9% $25,441  10% $25,000  11%
    Revenue from Canadian adult-use cannabis  61,826  85%  58,256  90%  269,534  98%  214,319  97%
    Revenue from wholesale cannabis  13,092  18%  750  1%  25,651  9%  1,436  1%
    Revenue from international cannabis  13,427  19%  15,725  24%  53,036  19%  43,559  20%
    Less excise taxes  (22,215) (31)%  (16,398) (24)%  (98,899) (36)%  (63,884) (29)%
    Total $72,577  100% $64,413  100% $274,763  100% $220,430  100%
                     


    Other Financial Information: Gross Margin and Adjusted Gross Margin
    		  
      For the three months ended May 31, 2024
    (In thousands of U.S. dollars) Beverage Cannabis Distribution Wellness Total
    Net revenue $76,739  $71,919  $65,566  $15,658  $229,882 
    Cost of goods sold  35,907   43,087   57,750   10,788   147,532 
    Gross profit  40,832   28,832   7,816   4,870   82,350 
    Gross margin  53%  40%  12%  31%  36%
    Adjustments:          
    Purchase price accounting step-up  176   —   —   —   176 
    Adjusted gross profit  41,008   28,832   7,816   4,870   82,526 
    Adjusted gross margin  53%  40%  12%  31%  36%
               
               
      For the three months ended May 31, 2023
    (In thousands of U.S. dollars) Beverage Cannabis Distribution Wellness Total
    Net revenue $32,404  $64,413  $72,612  $14,759  $184,188 
    Cost of goods sold  15,838   24,955   65,866   10,366   117,025 
    Gross profit  16,566   39,458   6,746   4,393   67,163 
    Gross margin  51%  61%  9%  30%  36%
    Adjustments:          
    Purchase price accounting step-up  1,259   —   —   —   1,259 
    Adjusted gross profit  17,825   39,458   6,746   4,393   68,422 
    Adjusted gross margin  55%  61%  9%  30%  37%
               
               
      For the twelve months ended May 31, 2024
    (In thousands of U.S. dollars) Beverage Cannabis Distribution Wellness Total
    Net revenue $202,094  $272,798  $258,740  $55,310  $788,942 
    Cost of goods sold  113,522   182,594   230,596   38,879   565,591 
    Gross profit  88,572   90,204   28,144   16,431   223,351 
    Gross margin  44%  33%  11%  30%  28%
    Adjustments:          
    Purchase price accounting step-up  4,602   7,628   —   —   12,230 
    Adjusted gross profit  93,174   97,832   28,144   16,431   235,581 
    Adjusted gross margin  46%  36%  11%  30%  30%
               
               
      For the twelve months ended May 31, 2023
    (In thousands of U.S. dollars) Beverage Cannabis Distribution Wellness Total
    Net revenue $95,093  $220,430  $258,770  $52,831  $627,124 
    Cost of goods sold  48,770   162,755   231,309   37,330   480,164 
    Gross profit  46,323   57,675   27,461   15,501   146,960 
    Gross margin  49%  26%  11%  29%  23%
    Adjustments:          
    Inventory valuation adjustments  —   55,000   —   —   55,000 
    Purchase price accounting step-up  4,482   —   —   —   4,482 
    Adjusted gross profit  50,805   112,675   27,461   15,501   206,442 
    Adjusted gross margin  53%  51%  11%  29%  33%
               


                     
    Other Financial Information: Adjusted Earnings Before Interest, Taxes and Amortization            
      For the three months
    ended May 31,    		Change % Change For the year
    ended May 31,    		Change% Change 
    (In thousands of U.S. dollars)  2024   2023  2024 vs. 2023  2024   2023  2024 vs. 2023 
    Net loss $(15,375) $(119,819) $104,444  (87)% $(222,404) $(1,443,000) $1,220,596 (85)% 
    Income tax (recovery) expense  (27,629)  8,132   (35,761) (440)%  (26,616)  (7,181)  (19,435)271% 
    Interest expense, net  9,456   5,027   4,429  88%  36,433   13,587   22,846 168% 
    Non-operating income (expense), net  17,022   16,680   342  0,002%  37,842   66,909   (29,067)(43)% 
    Amortization  31,730   28,993   2,737  9%  126,913   130,149   (3,236)(2)% 
    Stock-based compensation  7,252   9,829   (2,577) (26)%  31,769   39,595   (7,826)(20)% 
    Change in fair value of contingent consideration  1,000   292   708  0,242%  (15,790)  855   (16,645)(1,947)% 
    Impairments  —   —   —  NM  —   934,000   (934,000)(100)% 
    Other than temporary change in fair value of convertible notes receivable   —   64,954   (64,954) (100)%  42,681   246,330   (203,649)(83)% 
    Inventory valuation adjustments  —   —   —  NM  —   55,000   (55,000)(100)% 
    (Gain) loss on sale of capital assets - non-operating facility  (3,987)  —   (3,987) NM  (3,987)  —   (3,987)NM 
    Purchase price accounting step-up  176   1,259   (1,083) (86)%  12,230   4,482   7,748 173% 
    Facility start-up and closure costs  800   700   100  14%  2,100   7,600   (5,500)(72)% 
    Litigation costs, net of recoveries  (188)  1,465   (1,653) (113)%  8,251   (505)  8,756 (1734)% 
    Restructuring costs  6,833   (1,482)  8,315  (561)%  15,581   9,245   6,336 69% 
    Transaction costs (income), net  2,401   5,495   (3,094) (56)%  15,462   1,613   13,849 859% 
    Adjusted EBITDA $29,491  $21,525  $7,966  37% $60,465  $58,679  $1,786 3% 
                     
                     
      For the three months
    ended May 31,    		Change % Change For the year
    ended May 31,    		Change% Change 
    (In thousands of U.S. dollars)  2024   2023  2024 vs. 2023  2024   2023  2023 vs. 2022 
    Net loss attributable to stockholders of Tilray Brands, Inc. $(31,747) $(138,713) $106,966  (77)% $(244,981) $(1,452,656) $1,207,675 (83)% 
    Non-operating income (expense), net  17,022   16,680   342  0,002%  37,842   66,909   (29,067)(43)% 
    Amortization  31,730   28,993   2,737  9%  126,913   130,149   (3,236)(2)% 
    Stock-based compensation  7,252   9,829   (2,577) (26)%  31,769   39,595   (7,826)(20)% 
    Change in fair value of contingent consideration  1,000   292   708  0,242%  (15,790)  855   (16,645)(1,947)% 
    Impairments  —   —   —  NM  —   934,000   (934,000)(100)% 
    Other than temporary change in fair value of convertible notes receivable, attributable to stockholders of Tilray Brands, Inc.  —   64,954   (64,954) (100)%  29,023   208,641   (179,618)(86)% 
    Inventory valuation adjustments  —   —   —  NM  —   55,000   (55,000)(100)% 
    Facility start-up and closure costs  800   700   100  14%  2,100   7,600   (5,500)(72)% 
    Litigation costs, net of recoveries  (188)  1,465   (1,653) (113)%  8,251   (505)  8,756 (1,734)% 
    Restructuring costs  6,833   (1,482)  8,315  (561)%  15,581   9,245   6,336 69% 
    Transaction costs (income), net  2,401   5,495   (3,094) (56)%  15,462   1,613   13,849 859% 
    Adjusted net income (loss) $35,103  $(11,787) $46,890  (398)% $6,170  $446  $5,724 1,283% 
    Adjusted net income (loss) per share - basic and diluted $0.04  $(0.02) $0.06  (321)% $0.01  $—  $0.01 NM 
                     
                     
    Other Financial Information: Free Cash Flow                
      For the three months
    ended May 31,    		Change % Change For the year
    ended May 31,    		Change% Change 
    (In thousands of U.S. dollars)  2024   2023  2024 vs. 2023  2024   2023  2023 vs. 2022 
    Net cash provided by (used in) operating activities $30,707  $43,598  $(12,891) (30)% $(30,905) $7,906  $(38,811)(491)% 
    Less: investments in capital and intangible assets, net  (2,367)  (10,277)  7,910  (77)%  (20,740)  (16,496)  (4,244)26% 
    Free cash flow $28,340  $33,321  $(4,981) (15)% $(51,645) $(8,590) $(43,055)501% 
    Add: growth CAPEX  2,596   9,850   (7,254) (74)%  16,243   9,850   6,393 65% 
    Add: cash income taxes related to Aphria Diamond  —   5,085   (5,085) (100)%  16,333   17,855   (1,522)(9)% 
    Add: integration costs related to HEXO  (325)  —   (325) NM  25,630   —   — NM 
    Adjusted free cash flow $30,611  $48,256  $(17,645) (37)% $6,561  $19,115  $(12,554)(66)% 
                     


    Other Financial Information: Key Operating Metrics        
      For the three months
    ended, May 31,    		 For the year ended
    May 31,
    (in thousands of U.S. dollars)  2024   2023   2022   2023 
    Net beverage alcohol revenue $76,739  $32,404  $202,094  $95,093 
    Net cannabis revenue  71,919   64,413   272,798   220,430 
    Distribution revenue  65,566   72,612   258,740   258,770 
    Wellness revenue  15,658   14,759   55,310   52,831 
    Beverage alcohol costs  35,907   15,838   113,522   48,770 
    Cannabis costs  43,087   24,955   182,594   162,755 
    Distribution costs  57,750   65,866   230,596   231,309 
    Wellness costs  10,788   10,366   38,879   37,330 
    Adjusted gross profit (excluding PPA step-up)  82,526   68,422   235,581   206,442 
    Beverage alcohol adjusted gross margin (excluding PPA step-up)  53%  55%  46%  53%
    Cannabis adjusted gross margin (excluding PPA step-up)  40%  61%  36%  51%
    Distribution gross margin  12%  9%  11%  11%
    Wellness gross margin  31%  30%  30%  29%
    Adjusted EBITDA  29,491   21,525   60,465   58,679 
    Cash and marketable securities as at the period ended:  260,522   448,529   260,522   448,529 
    Working capital as at the year ended:  378,540   340,050   378,540   340,050 
             



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