New York, August 09, 2024 - PRISM MarketView - Recently, PRISM issued a report regarding some of its PRISM Cannabis Index companies that would be announcing upcoming earnings. Since the issuance of this report, Tilray Brands, Inc. (TLRY), Green Thumb Industries (GTBIF), Trulieve Cannabis Corp. (TCNNF), AYR Wellness (AYRWF), Village Farms International, Inc. (VFF), and Leafly, Inc. (LFLY) have disclosed their financial results to the investment community.
Tilray Brands – Buds and Booze
Tilray reported 26% net revenue growth in the past year with 24% of that growth coming from its cannabis segment and projects this years net sales to be between $950M – $1Bn. Even more exciting is the company’s intention to expand its beverage offering in an attempt to broaden its brand and reach another channel of consumers. In its efforts, Tilray has acquired 8 beer brands from Anheuser-Busch making it the fifth largest craft brewer in the US. The company still sees the business’ future in cannabis but is investing in the beverage segment in the meantime, while waiting on rescheduling. Tilray plans to grow its portfolio of craft beer with the intention to capitalize on the lucrative cannabis beverage segment once legal.
Green Thumb Industries – Reports Rise in Revenues
The owner of RISE dispensaries reported positive Q2 earnings with revenue of $280M that increased 11% year-over-year and EPS that beat expectations ($0.09 vs FactSet $0.06). As it relates to guidance, the company expects revenue to be flat in Q3 and intends to enhance its market positions by increasing product lines and placement with seven to eight planned store openings in the second half of the year. In its longer-term outlook, the New Jersey market is being targeted for expansion. Ohio’s adult use market launch is expected to double, similar to previous expansions in other states. The company’s Ohio operations are fully built, with anticipated expansion from five to eight stores following regulatory changes in September. On the conference call, consumer demand was cited as still robust despite economic pressures, with strong performance in flower and pre-roll segments from its brands like Rythm and Dogwalkers.
Trulieve Cannabis Corp – Truly Green Outcomes Possible
Truileve exceeded its quarterly guidance in its earnings release and reported adjusted EBITDA of $107M vs FactSet $91.1M. Additionally, the company beat on revenue citing $303.4M vs FactSet $91.1M. The company anticipates Q3 revenue will be down mid-single digits vs Q2 and up mid-single digits y/y. The company guided its revenues to decline to mid-single digits sequentially, but will increase mid-single digits y/y in Q3 with at least 25 new store openings by the end of the year. As it relates to its longer-term outlook, the company anticipates Ohio market sales could reach $2Bn annually with additional locations opening in early 2025 while the Florida adult use market sales are expected to reach $6Bn annually post #YesOn3 initiative success.
AYR Wellness – Making EBITDA Margin Well Again
AYR came in below revenue and adjusted EBITDA estimates for the quarter while revenue still met its guidance, EBITDA margins fell short. However, the company expects to overcome margin pressures with growth in the second half of 2024. Expansion into Pennsylvania, Ohio and Florida is a strategic focus with the intention to start opening Ohio stores in 2025. Its new cultivation facility in Florida expects its first harvest in Q3 2025, which should enhance sales per store with indoor flower offerings. The new facility is set to double flower capacity supporting up to 100 stores by end of 2026 with current market trends. AYR overall store count increased by 30% to 150 stores as its wholesale channel led company growth. AYR is targeting a return to 25% EBITDA margin by year-end despite its quarterly fluctuations and is projecting positive GAAP cash flow from operations and positive free cash flow for the calendar year 2024.
Village Farms – Cultivating International Growth
Village Farms reported a Q2 loss with EPS strongly missing on EPS at ($0.21) vs FactSet ($0.02) while its revenue topped estimates ($303.4M vs FactSet $293.7M). The company expects its first Netherlands sale in Q1 2025 and guided its fresh produce segment to significantly improve in the second half of 2024. The company intends to expand cultivation in its Canadian cannabis capacity and increase market share with the intention to replicate its success in Canada, internationally. On its conference call, the company stated it experienced out of stock inventory that exceeded sale expectations on its popular strains and believes the second half of the year to improve from better pricing and less reduction of industry supply, from summer seasonality.
Leafly, Inc. – Working to Flourish with Facts on Flower
Leafly’s earnings reported a $2M decline in revenue from the same period a year ago but improved its operating expenses by ~$2M. While it reported an operating loss of $1.3M it showed a slight improvement on its net loss reported for the same period a year ago of $1.4M. Additionally, EPS beat expectations and was reported at ($0.55) vs FactSet ($1.12). Q3 revenue guidance was $8.4M vs FactSet $8.6M. The company’s CEO Yoko Miyashita stated, “We remain focused on enhancing operational efficiency and stabilizing our core business while delivering value to our partners. We are living in an era of liberalized access to cannabis and we believe the demand for Leafly’s trusted voice and guidance has never been greater. We remain invigorated by the opportunities to connect retailers and brands with high-intent consumers.”
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