Tilray Brands Inc. (TLRY) pulled off something rare in the cannabis sector Thursday: an actual profit. The company reported quarterly earnings of one cent per share, sailing past Street expectations for a loss of 20 cents.
Revenue came in at $217.51 million, topping the consensus estimate of $210.95 million. But the real story is what's happening overseas.
Cannabis net revenue climbed 3% to $67.5 million, with the growth driven by a 36% jump in international cannabis sales and a 6% increase in Canadian adult-use cannabis. Beverage net revenue hit $50.1 million, while Wellness brought in $14.6 million.
The distribution segment, which includes Tilray Pharma, delivered the company's highest revenue quarter ever at $85.3 million. That's a meaningful shift for a business that's been working to diversify beyond its cannabis roots.
Building the U.S. Medical Play
Chairman and CEO Irwin Simon laid out the company's strategy for Tilray Medical U.S., saying the company intends to "leverage the infrastructure, expertise and know-how developed in conjunction with Tilray Medical's expected $150 million global medical cannabis business and our $300 million Tilray Pharma medical distribution platform in order to rollout our repeatable medical model and expand upon our current research, as well as initiating new FDA trials and partnerships for product development."