Tilray Brands Inc. (NASDAQ: TLRY) topped Wall Street’s revenue expectations Friday as the company continues beefing its beer business amid sluggish marijuana sales.
The company’s fiscal second-quarter revenue rose 9% to $211 million for the quarter ended Nov. 30, eclipsing analysts’ average estimate of $207.8 million, according to financial data from Yahoo Finance.
The company reported a net loss of $85 million, widening from a $46 million loss in the same period last year. The latest quarter included $75 million in non-cash items and $8 million in one-time costs, the company said.
CEO Irwin D. Simon said in a statement that the company remains generally focused on “revitalizing the beer market, driving growth in spirits and non-alcoholic beverages, and advancing the legitimacy of cannabis for both recreational and medical use.”
The company’s alcohol segment saw revenue jump 36% to $63 million versus the prior year. However, cannabis revenue dipped slightly to $66 million from $67 million, while international cannabis sales grew 25%.
Tilray has been expanding its beverage portfolio via new deals since entering the category in 2020. The company announced “Project 420,” a $25 million synergy initiative focused on tweaking its beverage operations following recent craft brewery acquisitions.
“Through our brew pubs, we focus on bringing people together, creating exceptional experiences through entertainment, and enhancing lives through moments of connection,” Simon said.
The company reaffirmed its fiscal 2025 guidance, projecting net revenues between $950 million and $1 billion. Wall Street analysts expect revenue of about $901 million for the year, according to Yahoo Finance data.
Tilray shares fell over 10% to $1.23 in morning trading as of press time.
The company’s adjusted gross profit increased 29% year-over-year to $61 million, with growth across all business units.
The company said it has achieved $17 million of its planned $25 million in synergies from Project 420 as of the quarter’s end, though noted these savings are not yet fully offsetting related investments.
Additionally, the load of acquisitions may make it difficult for investors to project a fuller organic sales picture in the shorter term, according to Seeking Alpha.