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Alc bev revs continue to grow in importance within cannabis co Tilray's mix as most recent brewer acquisition Montauk (in Nov 2022) added incremental growth. In fiscal year ending May 2023, Tilray alc bevs grew 33% to $95.1 mil including 42.5% growth to $32.4 mil in fiscal Q4 (Mar-May). That's as total Tilray revs were flattish at $627.1 mil for the fiscal yr including +20% to $184.2 mil in FQ4. So alc bevs represented 15% of Tilray's mix for the fiscal yr and 18% of the mix in the latest qtr. Alc bevs even more important to Tilray in terms of profit at 31.5% of total gross profit for 12 mos thru May (tho 24% of total GP in latest qtr). Alc bevs posted 51% gross margin in FQ4 and 49% for 12 mos thru May. Meanwhile, Tilray cannabis returned to double-digit growth in FQ4 but declined 7% to $220.4 mil for 12 mos thru May 2023 due to medical and international drops. Altogether, even as total Tilray reduced operating expenses significantly in FQ4, co still posted $90-mil operating loss for the qtr and $1.37 bil loss for 12 mos. SweetWater grew revs in the fiscal yr "driven by partnerships with key distributors" like United and Eagle Rock in its respective home mkts, plus with Reyes Bev Group on the west coast, Tilray ceo Irwin Simon underscored on the earnings call (giving his ritualistic, quarterly shoutout to Reyes). Montauk is growing 30-40% vs year ago (tho still all incremental to Tilray at this stage), expanded distribution by 42% since the acquisition, now sold across 7500 retail accounts thru NY, NJ, CT and RI. Irwin and co remain "confident it can be a national brand." Plus, Alpine and Green Flash worked toward stabilization. A whole lotta innovation is comin' this summer, especially across SweetWater and Montauk (as the latter also likely aimin' to hit volume/EBITDA targets before end of 2025 that earn folks who sold to Tilray up to $18 mil in additional payout - see Jan 10 issue). And Breckenridge Distillery also got shout out for being aligned nationally with RNDC including a distribution contract "guaranteeing" 30% sales growth nationally for brand, Irwin shared.SweetWater Brand Family $$ Down 4% YTD Thru Jul 1 in Nielsen; Montauk Flyin' in Scans Lead brand SweetWater is performing better in Nielsen-tracked scans lately. SweetWater craft $$ declined 2.5%, volume -3.5% YTD thru Jul 1 in Nielsen xAOC + liquor plus convenience data from Bump Williams Consulting's mid-year craft report. But total SweetWater $$ down 4% including hard seltzer double-digit drops. Meanwhile, Montauk craft sales flew up strong double-digits, offsetting continued decline of its hard seltzer. Growth is driven by flagship Wave Chaser IPA, Seasonal, Eastern Haze IPA, plus new Surf golden ale and Variety pk.Good Supply Another Example of Tilray Building Brands Across Categories Lower-priced Good Supply "easy lager" launch in 16oz cans across GA, CT, NY this June (see Jun 14 issue) got shout out on the earnings call as well. Good Supply is another example of Tilray hoping to build brand families across categories as Good Supply is already a growing cannabis brand of Tilray's in Canadian mkts that co chose to extend into light lagers in US; similar to how it initially expanded RIFF cannabis brand to RTD cocktails. Co expects to launch more Good Supply beer mkts this summer.$500 Mil in Cash/Marketable Securities to Keep Wheelin' & Dealin'; Diversified Biz; "We Will Change" Craft While Tilray continues to operate at significant loss (primarily from non-cash impairment charges), co currently has $500 mil in cash on hand including marketable securities, Irwin emphasized multiple times thruout the earnings call. "Cash is king" and this gives Tilray "ability to invest" in "our business" and build thru "acquisitions," he added. Indeed, Tilray recently opted to refinance debt while "reserving" its cash for "investments and strategic acquisitions," cfo Carl Merton stated. Thruout call, Tilray reiterated plan to diversify biz and ensure it's not reliant on federal legalization for success. But "upon legalization, all of these businesses" could "come together," including craft beer brands potentially becoming cannabis brands. "If and when" federal legalization of cannabis happens, "we are ready to dominate." While most of the questions from analysts were directed at cannabiz, Tilray's "doing great things in the craft beer business" and "we will change that industry," Irwin declared. Recall, Tilray also recently communicated to its distrib network that it plans to be "the fastest-growing Craft Brewery by the end of fiscal year 2024" (see Jun 20 issue). Tilray is once again in hunt for further craft acquisitions, CBN understands.

Tilray Alc Bevs Up Big w/ Montauk Boost; $95 Mil for 12 Mos Thru May; More Big Oper Losses; Cash on Hand to Wheel & Deal

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