Tilray Brands reported a 20% increase in first-quarter fiscal 2027 revenue, reaching US$257.1 million compared to US$209.5 million in the prior year. The growth was driven primarily by strong beverage sales following the integration of BrewDog, as the company focuses on improving profitability and reducing operational costs.
The company’s gross profit rose 35% to US$77.5 million, with gross margin expanding to 30% from 27%. Beverages emerged as the key growth driver, with segment revenue climbing 82% to US$101.5 million. Beverage gross margin improved to 41% from 38% in the previous year.
Management indicated that BrewDog became profitable during the quarter after operational stabilization, cost reductions, lease renegotiations, and exiting unprofitable activities.
Enhanced marketing campaigns and favorable summer trading at retained bars and pubs also contributed to the segment’s performance. “The budget for this year is profitability and some good profitability coming from BrewDog,” management stated in response to an analyst’s query.
Distribution business revenue increased 14% to US$84.3 million, while cannabis revenue declined to US$56.1 million from US$64.5 million in the prior-year quarter. Cannabis gross margin improved to 39% from 36%. Wellness revenue remained stable at US$15.3 million.
The company posted a net loss of US$40 million, or US$0.32 per share, primarily due to non-cash charges. Adjusted net loss was US$3 million, or US$0.02 per share.
Adjusted EBITDA fell to US$9.2 million from US$10.2 million a year earlier, partly due to approximately US$1.7 million in global fuel surcharges.
Tilray reduced total outstanding debt by US$42 million during the fiscal year to date, ending the quarter with US$221.4 million in cash, restricted cash, and marketable securities, resulting in a reported net cash position.
Operational improvements continued at international cultivation facilities. The Portugal operation reduced operating and cultivation costs by approximately 40% while enhancing strains and potency, with plans to produce over 40 metric tonnes of flower at full capacity in fiscal 2027. The Aphria RX operation in Germany is running at full capacity.
For the fiscal year ending 31 May 2027, Tilray reaffirmed its adjusted EBITDA guidance of US$68 million to US$75 million, indicating expected double-digit growth from fiscal 2026. The company noted that financial performance is typically weighted toward the second half of the fiscal year.