Tilray’s cannabis revenues increased significantly over the first quarter, but overall incomes increased by 13 % as a result of a nearly double in profits from its liquor business.
The Canadian cannabis tycoon reported its financial results for Q1 of the 2025 fiscal year this week, reporting net revenues of$ 200 million, an increase of 13 % from the$ 177 million it generated during the same time last year.
This growth was largely driven by a 132 % surge in beverage alcohol revenue, which totaled$ 56m, up from$ 24.2m the previous year.
Meanwhile, its cannabis net revenue, including$ 20m in excise taxes, declined to$ 61.2m, down from$ 70.3m.
During an earnings call held yesterday, Tilray’s CFO Carl Merton said that gross cannabis revenues of$ 81.2m were comprised of$ 57.2m in Canadian adult-use revenue,$ 12.2m in international cannabis revenue,$ 6.3m in Canadian medical cannabis revenue, and$ 5.5m in wholesale cannabis revenue.
Medical cannabis sales grew marginally ( 2 % ) year-on-year’ despite’ growing competition from the adult-use market.
However, Tilray’s adult-use sales decreased by 20 %, which the company claims was the result of our increased efforts to maintain a higher average selling price in industries that have experienced a high degree of price compression.
” As we focus on our goal of improving cannabis gross profits, we are consciously less focused on share and revenue in certain groups, especially those classes facing the most price compression, including infused, pre-roll, and smoke.
” We increased cannabis net profit by$ 4.4 million and increased adjusted hemp gross margin by over 500 basis points from the previous year time despite the decline in gross profit and communicate in those groups.”
Tilray’s gross profit improved by 35 %, rising to$ 59.7m from$ 44.2m in the prior year, with the company’s gross margin increasing to 30 %, up from 25 %. This reflects Tilray’s efforts to enhance operational efficiency. The company’s net loss narrowed by 38 % to$ 34.7m, compared to$ 55.9 million in the same period last year.
Notably, Tilray’s international cannabis revenue decreased by 14 %, which it attributed to “variation on the timing of import and export permits in nations other than Germany, resulting in fluctuations on a quarterly basis.
In the same earnings call, CEO Irwin Simon expressed optimism for the future, particularly in regards to potential legalization of marijuana in the United States following the upcoming presidential election.
He emphasized that the company is ready to expand in the U. S. if regulatory hurdles are cleared, stating”, I’m pretty optimistic there.”
Simon added that if the U. S. legalizes cannabis, Tilray would seek new acquisitions in the sector, leveraging its strong balance sheet”. Stay tuned, “he said, hinting at future opportunities.
