Tilray Brands Inc (TLRY)

[Las3r]

otherwise indicated.

Financial Highlights

Strong financial position with $433.5 million in cash and marketable securities.

Maintained #1 leadership position in Canada with 8.3% cannabis market share.

Beverage-alcohol sales increased 56% to $21.4 million, over the prior year quarter, including revenue from acquisitions.

Gross profit rose to $40.1 million, a 22% increase, year over year.

Adjusted gross margin held at 29% compared to the year ago quarter.

Cannabis gross profit increased 37% to $18.6 million from $13.5 million in the prior year quarter, while the gross margin percentage increased to 37% from 23%.

This was driven by our success in implementing numerous cost-savings programs, offset in part by our allocated overhead from intentionally reducing production, coupled with the revenue realized from our strategic alliance with HEXO in the current year and in inventory provision in the prior year.

Achieved $119.6 million in annualized cash cost-savings since the closing of the Tilray-Aphria transaction in May 2021, up from $108 million as of August 31, 2022.

Adjusted EBITDA of $11.7 million, marking the 15th consecutive quarter of positive adjusted EBITDA.