Tilray Brands Inc (NASDAQ:TLRY), a leading global cannabis-lifestyle and consumer packaged goods company, stock fell 4.46% (As on October 4, 11:35:17 AM UTC-4, Source: Google Finance) after the company reported first-quarter fiscal 2024 results that  narrowed its net loss from $65.8 million in the year-ago quarter, or a loss per share of $0.13, to a loss of $55.9 million, or a loss per share of $0.10. During the quarter, the company also closed three acquisitions, Hexo Corporation in June, Truss Beverage Co. in August, and eight beverage brands from Anheuser-Busch InBev earlier this week. The company also grew its cannabis market share position in Canada to 13.4%.

The company had reported the adjusted revenue growth of 15 percent to $153.2 million in the first quarter of FY 24, missing the analysts’ estimates for revenue of $175.1 million, according to Zacks Consensus Estimate. Gross profit was $44 million, while adjusted gross profit was $49 million in the quarter. Gross margin was 25%, while adjusted gross margin declined to 28% from 32% in the prior year quarter. Beverage alcohol net revenue increased 17% to $24 million in the first quarter from $21 million in the prior year quarter. Beverage alcohol gross margin increased to 53% in the quarter from 47% in the prior year quarter and adjusted gross beverage alcohol margin was 56% in the quarter compared to 53% in the prior quarter, reflecting an increase in beer as a percentage of sales mix along with the positive impact of the Montauk acquisition. Distribution net revenue increased 14% to $69 million in the first quarter compared to $61 million in the prior year quarter. On a constant currency basis, distribution revenue was $67 million in the quarter, up 11% from the prior year quarter. Distribution gross margin increased to 11% in the quarter from 9% in the prior year quarter, reflecting favorable sales mix and lower production costs.

Moreover, Cannabis net revenue increased 20% to $70 million in the first quarter compared to $59 million in the prior year quarter. On a constant currency basis, net cannabis revenue was $71 million in the quarter, up 22% from the prior year quarter. Cannabis gross margin decreased to 28% in the quarter from 51% in the prior year quarter and cannabis adjusted gross margin decreased to 35% in the quarter from 51% in the prior year quarter, reflecting the prior year’s inclusion of the HEXO advisory fee revenue and the completion in the first quarter of a wholesale transaction designed to optimize inventory levels and generate $3.1 million of cash.