EXCLUSIVE: Tilray CEO Irwin Simon On Why US Cannabis Rescheduling Won’t Change A Billion-Dollar Play
In a fireside chat with senior analyst Pablo Zuanic on October 23, 2024, Tilray Brands (NASDAQ:TLRY) CEO Irwin Simon shared insights into the company’s growth strategies, highlighting profitability, U.S. market entry and the expansion of their cannabis and beverage businesses. Simon also addressed the recent quarterly performance and challenges the company faces in both domestic and international markets.
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Record Quarterly Performance With A Focus On Profitability
Tilray’s first-quarter results for FY25 marked a record $200 million in revenue, up 13% year-over-year, with gross profit jumping 35%. While some investors expressed concerns about the decline in the cannabis segment, Simon reiterated Tilray’s focus on profitable sales growth over chasing market share at unsustainable margins. “It’s very easy for us to go out there and wholesale cannabis and not make any profit,” Simon said, emphasizing the focus on premium branding, genetics and innovation.
Tilray also maintained a solid balance sheet, with nearly $250 million in cash and a debt-to-equity ratio of 1.75. Simon highlighted the profitability of Tilray’s diversified portfolio, which spans cannabis, hemp food, beverages and pharmaceutical distribution. “Each of those businesses today are profitable,” he pointed out.
Hemp-Infused Drinks: A New Frontier
Tilray’s push into hemp-derived Delta-9 THC drinks forms a critical part of …