Cannabis producer Tilray Brands on Wednesday reported a jump in revenue as it diversifies its portfolio and moves deeper into the beer industry.
The company reported $177 million in net revenue, up 15% year over year, for its fiscal first quarter. Its cannabis division brought in $70 million in net revenue, reflecting a 20% spike year over year.
It also narrowed its net loss to $55.9 million during the quarter, compared to a loss of $65.8 million a year earlier.
Tilray is a multinational cannabis company based in Canada, but it has increasingly moved into other segments, particularly the U.S. craft beer industry, as it navigates an uncertain legal environment for marijuana around the world.
The company said it grew cannabis revenue in Canada by 16.5% and strengthened its leading market share position in the country to 13.4%. Canada is one of the few major markets where recreational cannabis is legal at the federal level.
On an earnings call Wednesday, CEO Irwin Simon said the company’s recent beverage mergers and acquisitions will accelerate growth and expand the company’s footprint beyond its recreational cannabis business as the drug remains illegal in key markets in the world, including at the federal level in the U.S. and in much of Europe.
“We’re waiting for legalization to happen in the U.S.,” Simon said separately during an appearance on CNBC’s “Squawk on the Street” on Wednesday. “If it happens, it will be great and we’re well-positioned.”
If legalization in the U.S. doesn’t happen, Simon said the company will fall back on its booming beverage business.
In recent years, the company has been on a buying spree, making deals in what it said are fast-growing markets, such as craft beers and cannabis-infused beverages.
Earlier this week, Tilray completed its acquisition of eight beer brands from Anheuser-Busch InBev that it had announced over the summer. The company said the deal makes it the fifth largest in the U.S. craft beer market.
Around the same time, the company acquired the remaining 57.5% equity ownership of cannabis-infused drinks maker Truss Beverage from Molson Coors Canada.
The transaction prices of both deals were not disclosed.
Tilray’s beverage alcohol revenue jumped 17% to $24 million in its first quarter, from $21 million in the prior-year period. It cited in part growth in its Montauk Brewing Company subsidiary. Tilray acquired Montauk, a fast-growing brewer in metro New York, in 2022.
“We have strategically diversified our company globally over the past several years and, as a result, Tilray is now ideally positioned to capture a wide range of opportunities across multiple industries,” said Simon in the earnings release.
