After expanding its beverage portfolio in September, Leamington-based Tilray Brands Inc. saw its net revenue from beverage alcohol soar 117 per cent to $47-million USD in the second quarter.
Tilray Brands records its finances in American currency.
The company's chair and CEO says it's "uniquely positioned to become a top 12 beer and alcohol beverage company in the U.S."
In September, the company acquired eight beer and beverage brands from Anheuser-Busch, including Shock Top, Breckenridge Brewery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewery, and HiBall Energy.
The acquisition made Tilray Brands the fifth-largest craft beer producer in the U.S.
Gross profits from beverage alcohol increased to $16-million from $10-million a year ago.
Meanwhile, cannabis revenues grew. Net revenues went from $50-million in the second quarter of 2022 to $67-million.
Overall, the company reported a $46.2-million loss, but revenues reached a new record of $194-million, up 34 per cent from the second quarter of 2022 when it reached $144-million.
The loss amounts to $0.07 per diluted share compared to $0.11 a year ago.
"Our Q2 financial results demonstrate the strength of our brands, our global team, and our diversified growth strategy," said Chair and ECO Irwin D. Simon. "We grew revenue, enhanced our capital structure, and realized operating synergies while strengthening Tilray Brands' position as the number one cannabis operation and brand portfolio in Canada by sales volume and market share, the European market leader in medical cannabis, and the leader in branded hemp products. We have also emerged as a disruptor in the craft beverage-alcohol industry by assembling a portfolio of highly sought-after brands."
Gross profit increased 11 per cent to $47-million, while adjusted gross profits jumped 18 per cent to $52-million.
Tilray Brands also reduced its outstanding convertible debt by $127-million compared to the first quarter of 2022 and another $18-million by the end of the second. It had $261-million in financial liquidity, including $143-million in cash, $1.5-million in restricted cash, and $116-million in marketable securities.