Mr. Irwin Simon reports
TILRAY HOSTS 2021 ANNUAL MEETING OF SHAREHOLDERS
Tilray Inc. held its first annual meeting of shareholders as the new Tilray, the leading cannabis-lifestyle and consumer packaged goods company with the largest global geographic footprint in the industry.
Irwin D. Simon, chairman and chief executive officer, said: "In just six months, we have made concrete and measurable progress integrating our operations while capitalizing on the fast-growing consumer demand for wellness and consumer lifestyle products. Our assets in pursuit of this goal -- a portfolio of highly sought-after, high-quality brands, significant operational scale, a broad global distribution footprint and a commitment to operational excellence -- provide clear and differentiated benefits as we plan to build long-term, sustainable shareholder value."
He continued: "At the same time, in fiscal 2021, our brand platform generated positive adjusted [earnings before interest, taxes, depreciation and amortization] with the added benefit of enhanced operational efficiencies, infrastructure, production facilities and distribution networks to capitalize on the long-term growth opportunity that comes with ongoing cannabis legalization. This current value plus upside model is the backbone of the pursuit of our target of delivering $4-billion in revenue by the end of fiscal 2024. I remain highly optimistic about the future."
Strong presence in the European Union: In the EU, a growth market with nearly twice the population of the United States, Tilray expects to generate $1-billion in revenue by the end of fiscal 2024 with a mix of organic growth and acquisitions. The company has state-of-the-art cultivation facilities in Portugal and Germany that supply pharmaceutical-grade medical cannabis across international markets, as well as sales and distribution arrangements to supply cannabis through major pharmaceutical distribution channels. Further, it believes that Tilray's reputation for product quality puts it in an excellent position to capture the opportunity for adult-use legalization in the EU when the time comes.
Last week, leaders in Germany's incoming government coalition made substantial progress toward legalizing recreational cannabis in that market. Tilray is ideally positioned when legalization happens based on its market leadership in medical cannabis, production capacity and strength in brand building.
Building on leadership position in Canada through strength of brand portfolio: In Canada, Tilray remains the No. 1 licensed producer in the $4.62-billion cannabis market, driven by its portfolio of carefully curated brands across the medical, wellness and cannabis 2.0 product segments, and its processing capacity and distribution. Five brands in the Tilray portfolio rank in the top-five sales brands across adult-use categories based on HiFyre sales data for August through October, 2021. The company is making strategic investments in sales and distribution to expand its market share to a target of 30 per cent by the end of fiscal year 2024. It has also expanded its medical business in Canada through Tilray-branded cannabis edibles and the launch of its Symbios brand to offer patients a broader spectrum of cannabis formats and cannabinoid ratios at a better price point.
cultivating brand recognition and deepening U.S. footprint: To drive current revenue generation while positioning the business for accelerated future growth, Tilray is building its U.S. business on several fronts. In 2020, Tilray acquired Sweetwater, the 11th-largest craft brewer in the United States. It plans to expand Sweetwater further by expanding distribution, building awareness and new product development. Tilray is also committed to expanding its Manitoba Harvest business, a pioneer in branded hemp and wellness products, with access to 17,000 stores in North America. Together, Sweetwater and Manitoba are combined $100-million-plus businesses, and have exciting potential for future growth, including in the cannabidiol market today and over time in tetrahydrocannabinol-based products. In addition, to further reinforce its ability to seize the U.S. market opportunity when federal legalization allows, Tilray acquired the majority of the convertible notes of MedMen, a leading cannabis retail brand.
Commitment to operational excellence: Since the closing of the merger with Aphria, Tilray's leadership team has increased quarterly reported sales and delivered on the company's synergy commitments to drive bottom-line results.
In the fiscal year ended May 31, 2021, Tilray generated $513-million in revenue, a 27-per-cent increase compared with the prior year, and in the first quarter of fiscal 2022, revenue growth increased to 43 per cent year over year.
Tilray delivered adjusted EBITDA of more than $40-million in the fiscal year ended May 31, 2021, and its 10th consecutive quarter of positive adjusted EBITDA in the first quarter of fiscal 2022.
Tilray achieved $55-million in synergies on a run-rate basis through the end of the first quarter of fiscal 2022. The company currently expects to deliver approximately $80-million of annual pretax cost synergies by one year from now, ahead of its original plan.
Tilray is a leading global cannabis-lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia and Latin America that is changing people's lives for the better one person at a time by inspiring and empowering the worldwide community to live their very best life by providing them with products that meet the needs of their mind, body and soul, and invoke a sense of well-being. Tilray's mission is to be the trusted partner for its patients and consumers by providing them with a cultivated experience and health and well-being through high-quality, differentiated brands and innovative products. A pioneer in cannabis research, cultivation and distribution, Tilray's unprecedented production platform supports over 20 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods and alcoholic beverages.
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