Analyst Note| Kristoffer Inton |
The combination of legacy Aphria and legacy Tilray closed in early May, less than a month before its fiscal year end. As such, the first quarter of Tilray’s fiscal year 2022, which ended in August, represented its full first quarter as a combined company. Revenue growth was decent considering adult-use dispensaries largely reopened to the public from pandemic measures during the quarter, reaching $168 million compared with $142 million in the preceding quarter. Gross margin of 30% and adjusted EBITDA margin of 8% looked good, especially compared with fellow Canadian producers who’ve yet to reach positive EBITDA. Still, we expect further adjusted EBITDA margin expansion to be roughly 20% by 2031.