TLRY - Tilray Brands Inc. (TLRY) Q3 2024 Earnings Call Transcript

2024-04-09 15:14:09 ET

Tilray Brands, Inc. (TLRY)

Q3 2024 Earnings Conference Call

April 9, 2024 8:30 AM ET

Company Participants

Berrin Noorata - Chief Corporate Affairs and Communications Officer

Irwin Simon - Chairman and Chief Executive Officer

Carl Merton - Chief Financial Officer

Denise Faltischek - Chief Strategy Officer and Head of International

Blair MacNeil - President, Tilray Canada

Ty Gilmore - President, U.S. Beer Business

Conference Call Participants

Andrew Carter - Stifel

Nadine Sarwat - Bernstein

Remington Smith - Alliance Global Partners

Bill Kirk - Roth MKM

Michael Lavery - Piper Sandler

Matt Bottomley - Canaccord Genuity

Doug Miehm - RBC Capital Markets

John Zamparo - CIBC

Presentation

Operator

Thank you for joining today's conference call to discuss Tilray Brand's Financial Results for the Third Quarter of Fiscal Year 2024 ended February 29, 2024. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session for analysts and investment firms conducted via audio.

I will now turn the call over to Ms. Berrin Noorata, Tilray Brand's Chief Corporate Affairs and Communications Officer. Thank you. You may now begin.

Berrin Noorata

Thank you, operator, and good morning, everyone.

By now, you should have access to the earnings press release, which is available on the investors section of the Tilray Brands website at tilray.com and has been filed with the SEC and SEDAR. Please note that during today's call, we will be referring to various non-GAAP financial measures that can provide useful information for investors. However, the presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. The earnings press release contains a reconciliation of each non-GAAP financial measure to the most comparable measure prepared in accordance with GAAP.

In addition, we will be making numerous forward-looking statements during our remarks and in response to your questions. These statements are based on our current expectations and beliefs and involve known and unknown risks and uncertainties, which may prove to be incorrect. Actual results could differ materially from those described in those forward-looking statements. The text in our earnings press release includes many of the risks and uncertainties associated with such forward-looking statements.

Today, we will be hearing from key members of our senior leadership team beginning with Irwin Simon, Chairman and Chief Executive Officer, who will provide opening remarks and commentary; followed by Carl Merton, Chief Financial Officer, who will review our quarterly financial results for the third quarter and update our financial guidance for the fiscal year 2024. Also joining us for the question-and-answer segment are Denise Faltischek, Chief Strategy Officer and Head of International; Blair MacNeil, President of Tilray Canada; and Ty Gilmore, President of our US Beer Business.

And now I'd like to turn the call over to Tilray Brands' Chairman and CEO, Irwin Simon.

Irwin Simon

Thank you, Berrin. Good morning, everyone, and thank you for joining us. At Tilray Brands, we take great pride in our mission to be the most responsible, trusted and market leading cannabis and consumer products company across the globe. Today, with our complementary business units, we believe Tilray Brands is the best positioned company in the world to take advantage of all the positive regulatory tailwinds happening globally with cannabis legalization and drug policy reform.

In Canada, Tilray continues to lead the cannabis industry with the leading portfolio of adult-use brands and the number one market share. In the event, the current excise tax regime were to be replaced with a 10% Ad Valorem Tax based on the value of the product sold and not a per gram tax, we expect an annual savings of $80 million. We also expect to benefit from additional cannabis related regulatory reforms around marketing and THC potencies. I'll take a deeper dive in the Canadian market shortly....

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