Tilray Brands (TLRY) 28 Jul 222022 Q4 Earnings call transcript

Good morning, everyone and thank you for joining us to discuss Tilray Brands, Incorporated Financial Results for the 2022 Fiscal Fourth Quarter ended May 31, 2022. 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 and participating retail shareholders conducted through the Say Technologies platform. Question submission and uploading through the Say Technologies platform has already been concluded, and the company will read aloud and answer the top questions. Ms. begin now may you the conference. Noorata,

provide and and access various financial to you the SEDAR. section at On can good SEC please measures with is will morning. have should Investors be tilray.com for website investors. Tilray’s that everyone today’s now, of been the and non-GAAP information useful on filed the By available Thank has note earnings we call, which release to referring which

not intended financial However, be of accordance with the each information is measure the a release the presentation isolation non-GAAP in for with press to accordance as GAAP. of most information to or a earnings this considered in reconciliation comparable contains financial in GAAP. measure substitute Today’s presented prepared

I’d will involve statements our In call those risks and issued in Brands’ Simon. materially release text to statements and be remarks our and questions. forward-looking forward-looking differ could The and to on in and are incorrect. which based prove making these beliefs our known numerous with response risks And and statements. to the Tilray CEO, during your uncertainties be These forward-looking press such statements. now, in of turn associated includes earnings and over many may today Actual unknown to results described uncertainties expectations addition, the Irwin current we like Chairman from

our from realizing markets who and team update, Merton, Denise provide members update all on you'll Thank Blair the in business, Chief senior cannabis for being across shortly hearing this And our cost strengths Officer, morning. everyone. Thank us morning, Head Officer our by joined of and Faltischek, our you across market. Canadian who the including Chief for discuss Europe. outlook call of a will Canadian you you, and operational including; who financial who of Strategy synergies. key Financial Berrin, finally, good business, will our International leadership be will on I'm Carl key progress with MacNeil, President several legalization this global

the turn items. discuss I Denise, like to Before I'd over three call to

the the performance for our lay course year significantly over XXXX business optimize improve fiscal and growth to global have operational in sustainable and the work First, of our and profitable we done this groundwork beyond.

With our plays billion Second, legalization growth $X in it with plans. will in to I third, plan the let US platform. by role CPG and discuss execution upon Germany depending our strategic important XXXX. revenue our federal and that, at Tilray brands, off future was period the me alliance a saying up in And year generate HEXO to on that start fiscal and the cannabis fiscal XXXX world-leading great end of accomplishments building of

from and profitable plans. with Europe the XXXX pursuing reflects share Harvest deprioritizing fiscal our including transaction efficiencies. highlights, key to and sales and wellness our our work, production growth cannabis segment Not position the business, XXX%, that growth in while beverage as in lower most Tilray overall more the $XXX Canada, by QX gains of and in our distribution, to Over Manitoba bolstering free have with balance believe from substantially call award-winning expect a [ph] of we improved revenue year with fiscal and our deliver million, beverage in some our on to evident market of year this and compared operations in in flow acquired and today's XX% in contribution XX% as on growing team optimizing cost our two international million And positive decreased to as outcome end accelerated core were are year $XX performance assets, be been our brand we've driving we a years. you areas, over time million we savings, give to is our cultivation, savings in market-leading consecutive this record and X EBITDA strong cash. across including the year, market-leading fourth target past at use, quarter And and earlier point This million now fiscal our which wellness revenue our as also of position the with XXXX. divesting past US. Germany million to delivered these $XX We strategic the you'll sheet we $XX and million net reach and positive had compared the well. the into operating of quarter cash ended We through has we'll our marked than also entered world-class growth building XXth businesses work The productive by about investments on important, and XXXX but driving our Adjusted while very across duplicate exceeded businesses hear of the alcohol, $XXX Canada, global brands line medical, pillars, laser-focused alcohol. only renewing included adult EBITDA. growth, in adjusted we this $XXX that both recent original are facilities, of legacy note, well cost

moments, order in done related the to to the of work lead in and legalization to accelerate. XXXX. both taking that Carl brands $XXX a operations noncash industry we As is optimize through continues to to charge positioned to And and we're conditions best ensure a market cannabis continue will Tilray our fiscal million global you that in walk impairment few as have

HEXO. to along Moving

expertise secured growth convertible the distribution expanded Our us and benefits, innovation, in building with international acquisition know-how year. from Canada provides and including strengthening product senior this that legalization stem and eventually transaction capitalizing through having world-class upon brand on CPG in and and markets collective US opportunities this leveraging our notes offerings. markets broad commercial In XX of short, of financial and July closed on HEXO

up shared cost the transaction, in million within to synergies two immediately financial our years. savings addition to to earnings, In being next of $XX accretive benefits HEXO including

will and exclusively fee this and non-US legalization of pay the foresight non-Canadian upon annual will believe with and share of all the for work that strong XXXX, result optimize course by HEXO services brands complete which our products done billion of from we've processing more and US production strategic will we the its to want Tilray adult our As Carl Tilray. a of years $X over products operations the in discuss we each of Tilray HEXO cannabis business an HEXO next and now source for production four upon matters. to respect million detail. $XX fiscal in advisory in cultivation, Also, will of to Germany. the of have use our foundation reach as federal revenue in a achieve 'XX and to to end depending plan of course and I

be truly that course company status previously, scale. of global cannabis achieving our CPG accomplished objective, of discussed a will brands fiscal producer, consumers. and already address That cannabis which have, many and this brands power operational and enviable of as and our to XXXX. by Tilray and we've patients the attributes, the offerings, complete demonstrates fortunate proven we wellness of we this our sharpened strategic footprint over product leading building including of a best-in-class each portfolio alcohol low-cost with adult-use beverage needs brands In medical, a As craft are the

growth growing and and cost CPG generating in US, within Our our ability long-term profitability. pursuit in to presence saving our proficiency accelerate infrastructure international substantial the opportunities, synergies of market

brands. for fiscal achieve market-leading retail aggressively category cannabis-focused our market target legal craft alcohol It further consumers production who cannabis a our best $X not that Federal We offerings adult believe set team by share fresh and can should revenue legalization growth, would medical, build as medical adult-use course, certainly facilities can of reform, growing with while use, lessons to And I brands an position, in execute a view market for in of group experienced includes of in XX% provide seeing we supported medical among $X year state-by-state budtenders four finally to in the strategic in product through legalized uncertainty highest In in outreach by working growth Canadian But legalization gain fully which also opportunity and we optionality, converting back to the bolster responsibility none if upon adult our which believe of patients cannabis, management billion curating To watershed relationship and actual and keeping adjacencies by to to impact legalization. in potential we work adult-use through see an to revenue. market we for for a velocity expanding business poised additional repeatable momentum should customers, XX% initiatives wellness. Tilray and innovation was Its that the the scaled we Of to strategic next adults enhanced or the provide our continued business. educating, our beverage and be and as and XXXX further initiatives listed use possible, And to formulas have advance a and and cannabis our of the investing physicians Blair surrounded solidify adults adult continuing of given be and cannabis market bolster a positions demographic cannabis in regulation. federal We cannabis, current can synergies. have In a the this our end adult-use the of, detail. pursuing goal of towards by our growth, US, against a through billion discuss delivering legalization. path near-term use low-cost beverage products. better medical will overview the pending would CPG the an delivering relates event clear And while with education be variety and of reach upon in across pillars industry. product within innovative revenues as you broad trend retailers include: by be say, we legalized. day. legalization. based Canada, region. where partnerships products implement Producing we're assortment leadership, it to quality Europe, best-in-class market CPG

Manitoba our Sweetwater, which in We are considerable business, have assets, Distillery, include Harvest, all Washington, D.C. through wellness together beverage, alcohol available craft adjacency key and as XX Breckenridge and such US global adult-use which a states and

and year our US. approach, brands, and and growing a As expertise over expertise and CPG a excellence. growing US that positive they strong love US hands-on are portfolio profitable giving good balance operational award-winning upon acquisition and upon strong robust consumers CPG distribution a we've as high-margin broad consumer global sought-after year and combined cash industry in investment $XXX this XXXX EBITDA pursue to in collectively and and the opportunities have previously, of businesses $XX exemplifies Today, generated build adjacencies gross the across can infrastructure, and to in flow in represents legalization leadership our during million revenue fiscal nearly million Together, sheet platform and as our footprint CPG MedMen profit. brands our discussed cannabis additional businesses during CPG and we XXXX operations, well highly

West Sweetwater, celebrated consist in Francisco are number Our Distillery, world spirits XXXX two Green the the in the in San XXth recently Breckenridge iconic double of which World the which and rate the medal the Alpine largest brands. flash, and beverage gold nation's two craft brewery and competition and one Southeast gold Competition, largest alcohol Coast craft one Spirits brands

in and consists also which a the XX foot will Airport. collection presence foods. the Since commands whiskey number other spirit-based whiskey, Breckenridge the which our tap Canada markets. evaluating new bourbon Sweetwater further the Sweetwater spirits customer, in plans adjacencies. award-winning the reached is only but Harvest US XX markets go-forward from Through is wellness in the XX and production Collins, ready-to-drink drive for including share states, along trajectory with brand and in one following recent been of improving now hemp-based paired is square change loyal Harvest, portfolio, already including Sweetwater is experienced leader world's and is expanding hemp beverages operates Denver innovative Fort and XX,XXX And now across a to the are branded Westford expansions, and at facility in distribution Distribution vodka. confident and bourbon continuing brand across hemp with strategic measured business business pioneer International states, market America, Colorado, a products, established California, in able new its available Manitoba extend for a both routes US. a opportunities Sweetwater, in known XX% penetration while this in and beer production Distillery taproom craft to Our with the international benefit utilization launch widely we to The when distribution in acquisition. new in the to continued brand innovative has channel XX,XXX leading and with finally, not the production future. synergies growth dramatic gin that and has is and seed stabilized, Manitoba stores North combination, into Manitoba

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US lead have We to the to will and products their business parlay beverages, care will adjacencies. parlay the as into grow upon it our in in and clear the distribution and US products market related into these brands wellness operation legalization infrastructure well. that will US strong advantage personal to a strategic THC-based leverage And system in CBD federal CBD Tilray place

the I our flow Business. positive team, over and announced year in generate free adjusted With million units morning. that, let's business company Denise? hear call like to million to our Faltischek, operating cash what turn of Head-International Strategy from I'd Before XXXX. EBITDA and the Chief expects fiscal in $XX Officer be to will we this Denise $XX the reiterate to

a The is marked morning, international our to and considerable legislation sales cannabis by Sales strategic industry more in expected to bright this you, XXXX. Irwin to billion by as good into of million According cannabis period Internationally, to heading with legalization, continent. cannabis powerful are to the Partners, our widespread and growth signs position innovation approximately expand everyone. a Provision reach be of XXXX and the across to continues Europe growing Thank medical cannabis future Europe and accelerate introduced point continue growth. billion to in are €X.X footprint. economic we European €XXX expected progressive year, by adult-use being €X.X presence

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quarter, QX, in the international prior we which last During to QX, in QX year's to medical to down XXX% unique this shipments setup market from due and a international to QX compared led Israel increasing within the promising. cannabis but more revenue outlook in medical The pricing markets due decision of Israel, not sales severe the for with deterioration is conditions to other conscious declining. repeat made

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demand adult-use to the for strength operational meet business state-of-the-art one the G&P capacity allows up cannabis. the exponentially of with and facilities to our On ramp two us medical hand, model our

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However, in Many until broadly that cannabis. instance, a But be of beginning European XXXX. of did first – have believe clear countries progressing. wave of commercial also This outside political Germany, sale not start change the Europe. we firmly the of in a year to adult-use believe likely expressed is the commence we calendar to ambition legalize

Europe could few or In the shortly legalize across roughly legalizing We business our various the interference fact, years use France, market all international that based size with we adult within thereafter. the in XX% of ANSM. next the countries. of information countries of highlights medical-use cannabis Germany. two think the certain believe on In we that are quarter A patients we within the is estimate sooner approximately for serving French today, provided the by

leadership comprehensive the well when have cannabis to medical We France are the products. most positioned take we that also next ends, the believe experiment a of In role and mix UK, will spring we legalize there.

and evaluate products gummies our addition signature medical in patients the for to Poland, white we CBD announce In regulatory in being of is will Pollen, that in in to commencing into We Poland and received UK a with drink approval GMP. to high-quality begin In our rebranded from label three Lifestyle facility, positioned well I Amazon importing serve to submission Brand, we the am continue compliant launched market to a QX. Portugal CMS-certified lines. pleased recently EU Poland and Israeli CBD [indiscernible] cannabis products mix with are and also flower Israel, full on which drops

breadth on have are operations changes regulation of regulatory requirements take changing state prepared the and of in and We our continuously compliant the fall. with effect that have testing the

to expanded meet our offerings have in and our cannabis now great a medical we power seeing Finally, needs are acceptance patient complete of medical whole to cannabis products. product Australia, range of include

More providers few Canadian we of are importantly, that With our already one next GMP the are compliant President that, with us Blair the Australia the call Blair? to regulations back medical I'll now turn of to McNeil, to of June. over take cannabis EU business.

you, everyone. and hello, Thank Denise

Over for cannabis incredible created, $X the years, is legal billion four market in has last Canada a an been which achievement.

who this half and opportunity than and total in barriers of estimated Still, oversupply characterized revenue still entered this of the cannabis unreasonable price to compression. have a the excise regulatory significant market ahead. the a yet operating more a cannabis, not is differential punitive represents category. of challenging XX% However, Not legal environment an by provides exacerbated little the Canada age taxation by consumers mention,

this, almost revenue. growth we For one-third the license of of excise the outlets to producer, QX. continue in Despite number retail in see and average LPs is gross

to XX.X% cannabis the consumers continue taxation costs higher while legalization. significant rising all governments of from an in benefit quality of share from cannabis significant these sustainable, skill environment period. of market front consolidation and their XX products next not Despite the Brands. marketplace we benefit months. reduced revenue. Because on QX, is lives, rationalization since to challenging in had QX more of in Additionally, see This to discontinuation the over the period conditions, any in at and and Partner new declined X.X% launched continue prices, industry aspects sequential from In retail our LP

pre-rolls Kush come the success. Canada strategies hit our [ph] strains versus recent XXX% all, QX. vapes sold positions deliver. sales including in of We share In high-quality and to top based limited increase with Monkey on May, QX and five and numerous we sell-through categories, to market that adult-use in data to completely experienced flower beta Butter extending two number market. markets us Our saw XX into are across suggest flower, first leading beginning Sweet that through great forecasted Berry in and a

strains come. flower to additional a have XX years innovation our reinforcing We to pipeline commitment an in program, for Alpha our

You of reverse was majority are XXXX loss flower trend share and gaps will forward. our will recall moving FY due innovation, the in in we to this confident the

in investments and market encouraged we in flower of June, have a direct reflection gaining a trend experienced We the been share, making. are began that we we're reversal

have to regained Additionally, the share gap recently we its as able adjust for Quebec. been [ph] in market data of share the the Quebec, account relates competitive nationally we it June. of one high-quality to for for month When Tilray number in overstatement LP

functional based leverages plan a of profitability in win and our with that time. Our strategy to is scale consumer drive occasion benefit our over and best-in-class upon an This drive begins integrated brands. deep Canada and understanding consumer-first need, the leadership portfolio to share of approach manufacturing to

insight research to consumer consumers. which our form categories brand thinking portfolio product this is innovation develop prioritization strategy across and nearing our strategy. all project pipeline and Our for will utilized We completion,

and for the new categories, products, with retailer Quebec's foray brand's first THC vapes across beginning exciting flower first the innovations the Good products. Supply’s new sole at liquid Bites, best-selling Canada. with across cannabis expanded the all exclusive we select ready-to-eat edible including We market cannabis into in the QX, available Solei strains to During wax portfolio then high-potency launch available legal brought and of SQDC, markets edibles

white innovation improving consumer-first market-leading space of share of This years for a revenue to opportunities our innovation innovation the launched FY for licensed In Finally, the CBN of will Oil size. just nationally, SKUs XX% to ahead. XXX month, over we is to coming small under This brand. months sample to XXXX, we pipeline Night a Aphria in we continue identify come. expect our innovation launch producers will medical the last of cannabis launch

communicated, key part As our strategy. are we a of consistently have budtenders

social product our over market-leading in budtender portfolio X,XXX We X,XXX points developing conducted Through North, with of innovation digital while sessions budtenders Great media new through coverage driving QX. with resulted investments This communications. our through budtenders knowledge store and on product awareness focused we sessions, in product are almost educating and for and and distribution. database knowledge visits making a CRM in

Finally, focus base end-to-end identified we Early have a further. relentless on Tilray. we opportunity the optimize QX, cost in costs to our even at

We our already synergies. in million Chief have put of Merton, plans in amid to an six discuss in plan the an back $X These over which savings demonstrates are first Aphria underway, turn above environment. evolving This is realizing will Tilray, million over $XX to detail. Carl Financial and I call in margin greater place now our additional managing financials the and HEXO gross Carl? our QX. Officer, Tilray to weeks retail commitment

Thank Blair. you,

along have organization, results we Our operating segments, having our the for in ongoing year in a with across XXXX into both business fiscal distinct greater traction diversified our made despite strength QX efficiencies challenges. and demonstrate implanting market

one our prior and but I reporting month fiscal only Tilray's of months let periods of XX remind operating Before financial of both between financials, our quarter first both year results. Aphria arrangements fiscal in three and and year everyone one fiscal time in final statements, consists me of the because prior the that results for review XXXX, Aphria's months Tilray

dollars. US Our US are presented results financial follow and in GAAP

with non-GAAP our as our results. our in well will as call we financial adjusted GAAP financial today, reference both results throughout addition, In accordance

with results release identified X.X% prior to grew year measures under to to the press a contains our compared top financial QX Beginning $XXX.X of earnings reported Our reconciliation our the remarks. financial during revenue million our the net quarter. non-GAAP GAAP line,

said, because QX include of record apples-to-apples just legacy month fiscal results. Tilray the Although, as and contributions not is itself one I only not does fully of contains XXXX comparison from

net negatively the are QX euro revenue dollar. sources, revenue to the of biggest Canadian and native currencies impacted be our strength given Our the US dollar, ongoing by the continue particularly

as are was Net our quarters. QX income million impairment, of demonstrating by of the year in cost more The compared of from largely amortization was continue revenue $XXX rate changes the in XX.X% should is we loss in and saving the improvement for million programs million the reported XX.X%. prior completed. basis an XX.X% $XX.X to profitability and metrics variance the points was foreign due adjusted net profit in rate XX We period, year million QX, our to equal if $X.X in QX XXX non-cash fair EBITDA lower the prior the offset million from margin QX. both in partially gross example, transaction $X.X values, this increased million, year year from for Adjusted in quarter, reported other the costs quarter, to adjusted while an adjusted exchange year average prior EBITDA additional $XX.X extending quarter. would adjusted in believe record million increased $XX.X in EBITDA gross to additional For to $XX.X XX.X% quarter. down positive of track net to same these have prior

integration achieving segments, EBITDA in this cash positive of our was target realizing we synergy other operational from gross year coupled million $XXX adjusted fiscal past the million $XX savings of Contributing We adjusted of the revised already work XXXX positive as to our through targets Aphria-Tilray focus flowed our results. over discussed arrangement. of contributions million, to quarters. towards synergies operating did profit higher few have our EBITDA Our part report which $XX finished strong the as on to through we ability realizing efficiencies have a our adjusted business of is and function operating with our

inflation year, all the for interest our the like of the Irwin increased particularly with As our operating QX including traded for expected timing rates, the In the is conditions dealt atmosphere, a current impact the interest including US testing market of we mentioned, number testing. our completing general strength cost currencies publicly of this our annual impairment factors, dollar against rates, recessionary companies. models on and risk-free

provision intangible As between million a assets, all an and recorded of and us, in in repairs a deferred income we market with factors The other but and associated to of with partially HEXO. the result it Pharma new related front its a as inventory largely in changes Aphria the CC split inventory, related impairment these was reduction to opportunities the by $XXX of offset relationship changes goodwill One taxes. for

from recall, One’s of on As of on HEXO’s certain best our impairment the our Aphria business our related assets production to today. intangible facility efforts our processes will which and to are and production portions of to to certain Aphria The remaining you resulted cannabis goodwill focus processes opportunities facility. segment, tied are moving jurisdictional HEXO's moving ability other portion One to

the in revenue to our a have business in in a in XX.X% million. the cannabis cannabis less decrease X% If the rate equal X% $XX.X cannabis the in segments rate X% this to the cannabis to a detail, year quarter. million increased increase decreased was XXX% segment business, included year, segment exchange prior our our revenue medical adult-use Moving foreign prior decrease from and This further increase $XX.X to average our international in year than our would in Canadian business cannabis revenues. our

almost presence share. market ability year-end working demonstrate our regain combined on adult-use share potency and Hifyre innovation, Regaining from cannabis year-long to recent has While increased Canadian lost for our market budtenders. levels information revenue been this an with share decrease, product after effort with periods

purchasing retail rise setting. more the that within last budtenders positively belief brands quality our maintained During in a year, Canadian adult-use for once are higher influenced demand cannabis decisions we should the

While extremely international of amount the in we growth more. been the have in could quarter proud are revenue, cannabis our the

$X million we an quarter, scheduled to were Israeli the to ship buyer. During approximately

ability the order. from product with to passing However, what we cannabis as business on oversupplied we the has We market prudent Denise become ship concerned about the were Canadian Reiterating to market. chose payment. made not earlier, we move believe our said by Israeli such receive this

In terms XX% profit margins, quarter. of cannabis to profitability million the prior in adjusted year and $XX.X gross in from increased $XX.X QX million

part synergies. gross the as points to our making adjusted cost While XX.X%. around increased The through are from traction margin we of basis XXX reflected latter savings XX.X% efforts

of Breckenridge business. in primarily beverage prior was net Turning our and to higher which to revenue quarter. This the is QX our in alcohol December. acquisition million generated due XX% $XX.X year in than We

contributed expense increased this we our new as potentially due innovation $X.X by our SweetWater point. position and for in the of there innovative segment, However compared increased distribution to incremental upside an in of extensive strengthen other significant leveraging million distribution believe last an acquisitions. particularly pipeline is we and products [indiscernible] to US potential year

XX% Our in from adjusted alcohol QX prior million quarter. in to increased gross beverage the profit $XX.X year million XX.X

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quarter. returns higher-than-normal and also We during the experienced discounts

segment, $X.X wellness had we month for in $XX.X our Tilray's increased increased QX We year, one we Last $X.X my reduced contained year legacy margins. to gross contribution legacy only XXX wellness results in from non-branded view well as profit Tilray the XX.X%. comments, gross last financials. basis operating Finally, million in revenue with within XX.X% our million earlier adjusted reliance having grew one million million gross to only distribution products when the big-box this the customers. late Adjusted business compared quarter, calendar year of has reduce on to increased business. Consistent to on introduced big while wellness leadership points XXXX points as as some new from portfolio, new our QX of had reliance new the an improvements margin prior month stabilized non-branded resulted team to in box and of from $X customers as

outstanding was in by fiscal contributions debentures beverage Cannabis prior to increase million increased an to million from million convertible million our the year. Briefly we XXXX. the was mostly million and of approximately million, $XX.X program Distribution we also adjusted increased profitability, ATM from the revenue and the results. only while X% us from this in as we down and million million made both our balance we operational in Net which our a XXXX. strengthen and cash our and full balance $XXX of grew paying moving profit in had $X.X and in of our increased over $XX from $XX from full EBITDA $XXX.X in $XXX.X quarter revenue capital wellness, capital past XXXX last contribution XX.X% utilized which compared our results fiscal $XXX.X requirements. XXX% cash million by while debt. healthy gross and significantly year grew one proceeds from by adjusted alcohol, to reduced doing million realized Aphria-Tilray Included were to to Notably, arrangement. sheet meet XX.X%, $XX.X months synergies to so, million, to grew down those XX benefited Our working we to XX% million equivalent $XXX our acquisitions revenue to allows was balance $XXX.X due compared XX.X% On versus to month $X.X Xx

synergies a that alliance. generation those strategic course, Of have and will as also notwithstanding forthcoming the cash of be Tilray substantial HEXO will we result

during related up will years advisory including additional to that additional the operation partners, an each shared HEXO two of next four to will and by matters. production pay years amount next the of to within As us to efficiencies that our production be million both Irwin operations these million and cultivation, $XX fee $XX noted,

formats, additional alliance $XX our optimize strategic this competitive generate alliance production market believe accomplished medical and will scaled is low-cost through product of broader we investments XXXX, portfolios partnerships This for strains facilities is prepared and close we fiscal consolidation The adult-use retail our strengthening position. out, our our cash being and in relationships are physician as million to For concludes offerings, Canadian plays rightsizing high-quality Tilray. and in contraction. remarks. this and through with And This HEXO.

with the begin the analysts, by questions covering first few questions our Operator? We starting a retail will from question our platform. from which of our the will safe question? now followed shareholders call, be Operator, has through who Hello? segment

Thank you.

Vivien from Azer with Cowen Please is question first proceed. Co. & Our

actually for Victor Ma This for the Vivien on is Azer and thank questions. you

Hifyre post-quarter, quarter. drivers question, specifically vapes better, loss recent Can first in the in the trends XXX and some this on know both color you my bp and categories the the two offer and look I volume share a behind data these indicates pre-roll So, but trends post-quarter?

our President I'm going to let sure. that, business. answer Blair, is of For know, Blair as Canadian you our

ahead. go So Blair,

different. Yes, both there's and driving are two numbers that are I really our vape but pre-roll would trends say, numbers, trends

On the some over to pre-roll care strain but will side, continue our discontinuation be will little pipeline a our some of brands, in of you're which that time. our of noisy, rationalization of seeing take some innovation

take of The confident is second and you're will seeing that THC on forward. Again, vapes, THC a our very moving what part significant rise levels. in pipeline in trends we're vapes care the in in -- innovation rise

it as as not look different it's And look you it's the to Hifyre that they at not product month-by-month, in. -- accurate it always provinces, way at how some as take out, coming the of data

have we products time, tell products right look OCS. come couple a now, year, you, to will going we behind year had it. This into the this last over and definitely don't only I month-by-month. So, at it more new we But XX new of

up. levels potency are Our

which programs incredible like have Our place see drive to price are we to in volume. and some points we up,

million So, brand, of took this, almost what business. from a Tilray was feel longer And too seeing -- over we good. is a which you're no we discontinued brand, Marley which is it's the part a $XX

SKUs. coming a lot midst that, did rationalization SKU up and products. up in right now, we're We with new the we've cleaned So, of with

for could the squeeze just I Thanks one more Understood. in beer. question color. on If

sales So, underperformance beer tracked X% recent distribution Can despite category, from which in suggests any unperformed US state on that color fell points data in provide Nielsen the you of additional year-over-year. West SweetWater channels the craft Coast? the the July

is new the Listen, us. for Coast West

into and have SweetWater brands. to and but one taken products. our what Coast. Nelson, go But and top the Flash, of a on really we're feel we're happy Green expected, than we taken longer SweetWater distributing we We expected with about a Reyes are Alpine, West distributors, than longer they little has seeing the little we It's good existing

Green Coast are distributors great And we those that marketplace. little have of in you a But picking seeing Flash our a it's yes, up. to on West just or Alpine other tremendous SweetWater distributor that taken opportunities what for I brands in Reyes. got So three tell longer. and pick the Southeast partner the have also we're today, is the up some we distributors in And United products other

to up you're in what and which nice IRI is some doing data picking The other regards thing we're not seeing we're in on-premise, business. on-premise

I Thank back hope queue. you. Great. in

Stifel. Our next with question from proceed. Andrew Carter Please is

morning. thanks. Hey, Good

talk off, to will that number First is, on to business? the midpoint, of use included wanted I ask, of million, guidance that be, stability just say, Canadian increase. inflation revenue the first $XX in $XX million. year-over-year through you're kind to particular is on ask million and in off, which at the guess, here I wanted HEXTO terms in fee the could you headwinds, what FX also $XX I But thinking also

Good all inflationary that we in that that few few morning, places HEXO be way. energy into are we're talked input about costs we point, rising able in numbers. rising the adversely the inside also factored Andrew. won't a guidance at included where we've costs numbers to We're are seeing given. impacted. looking Yes, of at Manitoba have in at areas that I to that increases are the price secure looking Germany, a the call pressures material been those think And we along we're But There Harvest.

-- the it kind think adult Canadian stability of of key that Just for terms on the time is in like is it line? -- then line XQ can And outlook, I on by for that you Is this? XXXX you revenue help us use to XQ? mean, is

as same go seeing on happening our So laris September. and already the in good things the And one, I really time feel new seeing it's at products marketplace QX. Andrew, into rate that some starting in growth we're

our first So it's if basically back-end quarter. asking what -- not it you're in loaded the that's second in starts

discounting the others products throughout our listen, it's our what just like us. margins not you We're gain yes, for to are. year saw So And share.

As grow. to you we -- we continue saw still, continue where even to

into the market about or day products. HEXO feel and more. they're the year. And We all we good there's there throughout the are those one, good that with Canadian ones the numbers not think they happen HEXO. synergies about going. And don't the many is synergies the Aphria-Tilray opportunities new and many, built We in, built all into feel from where still deal So that's listen, built

HEXO So opportunities HEXO savings. still for deals. additional there's

I you. will pass it on. Thank

Thank you, Andrew.

is question Our with Andrew from proceed. next Bond Jefferies. Please

line [indiscernible] the Andrew on Bennett. questions. Thank for Owen our for you taking

very the nice driven on Carl, was first cost savings. lift about cannabis during you this quarter So to around by mentioned margins, efforts XX%.

as making around So of XXXX, bulk onetime margins were sales? or helping other cannabis margins any fiscal there any ex margins lift cannabis a you. or onetime is these or nuances any forecast Thank XQ we large items considerations underlying or any relatively should seasonal nuances be representation fair we

vast There impact morning. growing seasonal March The that It's costs. portion bit. the growing We very the best programs. not not though, it savings but a script season. huge the good little – on majority has is number, by the in that. of small from The it been piece May it's a to season a talked small cost is is a driven So, about of of Andrew, increase,

In the in rate targeting piece we're HEXO Tilray targeting. we're addition the that that to to Tilray savings addition

the have We reductions. we're internal cannabis cost an of for inside that plan targeting further business also

business. additional only place and good out not put That's in feel positive, our why in initiatives we throughout we business and then year, business costs our business. to in flow take some beer our about our of the how Canadian cash And spirits international

our years to some there's margins to are. after team four margins does. our seasonality and thee I different increase But our as have about our in like a there. -- good will great done and growth growing where feel the in half, our Yet, So job is and volume continue so that. mix what stuff to perfecting our with regards plan And

Carl. Thanks, Great. Super helpful. Thanks, Denise.

may, the quick, around warmer for months really we're fiscal staying considerations you just on the seasonal the But entering here, CPG, could us of beverage same I quickly summer if consumption? that theme. it Manitoba on-premise Just now related remind non-cannabis – be And quarterly around help XXXX as Thank in would you. to that, anything anything to relates Harvest helpful. seasonally alcohol to set just delivery to consider for expectations

is business changes like we the lot our Colorado, There's business. what meetings. from going to Breckenridge, our vodka vodka I we're just there. there gin a now on last what to bourbon regards gin from three and in In right spent days We or seeing great or on our some see. our sales There's some way back distribution out on regards

infused Hemp a from got products. that increase. half, we're with the team our to regards is going products there. no some and with California baking see now there's runs seasonality pickup tremendous in in coming you there. you'll start mean increases with to seasonality. you'll fall in out Coast, we're touch months winter real new or done on regards What seeds, different that, new baking bourbon I see the Manitoba who the to Jared coming In a into job. that, businesses I standpoint just to a right the lot has our and of time out see beer, products, as a to into in for go And Harvest, Foods, business. West continuously our And back our In regards Simon, distribution strong You'll beer the

in my is pretty You heard me mention script exciting. it

portfolio their excited the and the opportunities products and to and for our wanting Harvest. business us. spirits additional contribution Manitoba business, So talk me And about growth spirit add the beer really from our within beer we're wellness heard to exciting and about acquisitions coming you our our additional business

Great.

to the pass developments. forward it you, will on. I Thank Looking

Global is Partners. with Grey Alliance Our from next proceed. question Please Aaron

the you thank Hi. for morning, and questions. Good

morning. Good

good First – question you, thank morning.

to bit of pricing you taken guys flower months you price went Can I talk in now. I question about you're any ago just Canada. to prove some had a little me, a know speak First category trends seeing, wanted for to specifically the couple around changes that

need value? going LPs what just not that categories whether might of of secondary you if forward current be dynamics or might or premium own the into take kind do Thank see might no and some long-term and develop and then that, cultivation So model? think more other And differentiate some different their flooring might taking that might you a between you. of your or if not some on be more on asset-light of see advantage taking it just of that whether that sustainable and there model you

years, question. the very is these flower last And for what the you've you if way over of category. what you've evolution seen Thank is ultra-premium. segments category consumer the to two value interesting three a the all around Yes. call to The we looked would

in in program see you'll have what our sure of so those strain is And beta categories. all thoughtfulness we around making that entrants

flagship to And and value see opportunity is premium so big in some mainstream parts business, we our to there. and continue while do play be ultra-premium Broken Coast the of and

consumer forward. Kush flower have are significant on there you on I terms program built think those you brands that go. forward, the price continue Berry But what launches. some in think, beta unique it. strengths going innovation to the seen to and you saw I and opportunities compression see there's will Sweet And don't segments, QX flooring late is in our to Butter overall, into Monkey flower So much our different premiumize then moving category through of some

what to changing mean, infused in think we the regards and flowers. I And is pre-roll where tremendously infused pre-rolls, growth tremendous you're in flower, the and category talking category seeing about, we're

coming and in our improved and products pre-rolls with new and flower see of is about So with feel the and changing we September. our our no that's be pre-rolls the the also has flower, again, used what and quality infused tremendously XX% out we're out I what about of case. longer category, coming But which We're is some good we're doing, some category slims. where to the coming

we as right Canadian is our the market. before, the and where even marketplace that mix I through high-fire gone we good feel as in something we the of where got we've we think with I into SKU today, about here. So getting are talked right rationalization the are And types products

you just second on then right. international All quick the me Thank And for Great. one front. that. for

some within right now. about dynamics talked changing You are occurring that Israel

a about you medical you of Just slowdown outlook P&L market Canadian Can for talk in some been of If Germany. within and had terms LPs given big a XXXX your there's German you Israel to as terms side incremental has for be growth revenue? your in will slowdown you in for the much. that, agile, enough market so very within the see still Thanks growth without some there? do meaningful growth adult international on think offset use current expectation

Thanks for Yes. Hi, Aaron. question. the

online. both XXXX well I'm terms come Israel separate going in as of as Germany growth markets, to so absolutely And international the We our countries out see moment. have the for in FY other that numbers, in

most Germany, of are outside of countries but we do see various know, Europe, in other within the still countries. you small, growth accelerating As fairly

or a be of Poland. about just say, UK at and share is for to opportunity in see received a expecting customer have about Luxembourg share should and base And France still ends currently we positioned we XX% Tilray looking Plus to we March are France, there. instance, In cannabis medical both are legalize a that are well we very to for the in market market our maintain well, label customer as on authorizations quarter, Poland, the even though we us. good with as base it's small, as experiment we For size XXXX, and in soon are and big the – opportunity this in some looking thereafter. there well good medical we'll able experiment, branded pretty confident I of the patient private

making and Spain We medical also are us. opportunities we about big waves also which legalization, see for and think also conversation Italy

LPs so We by Israel. is large You on there are shipping that believe not Canadian bullish a right, oversupply in Israel. we into caused Israel are

with has uploaded. was you where happened large of product But could price and in what seeing sort X:X. I as be at numbers the there, stagnating has oversupplies an oversupply look happening is if that special is Israel amounts in in on to marketplace we're you sales patient’s Canada, at declining. an X:X, And look product think what resulted discounting there's place a of now the of marketplace that deals, market a and that, lot

market. a therefore, is little And pause kind strategy there that right of for we're so at looking of a bit what the hitting and

back Great. queue. Thanks the for color, I’ll in jump the

from Chen Our BMO with proceed. Tamy next Capital Markets. question is Please

the especially cost wondering, flower a this on bit. have synergies, quarter. you've achieving when done that a going really synergies Hi, thanks have There just job was like did you quality, and gross for stumble the really the achieving as see some year but deteriorated the question. a quality good cost with that at something margin in balancing we the products, quality the cannabis product just focus last in of really the cost a I'm terms your of the wondering, that that. result, I'm on can or of slower forward, you in initiatives I recall

keep achieve you changed, with these made of trends you market? wanted have more that as business in in just deteriorating synergies I the that that or nimble of be going to there understand in the Canadian not repeat has enough rec So, just terms to so to isn't forward Thanks. quality being better identifying changes to up what want a bit of a what going cost your

that, and Tamy for flower. acknowledged some like that's yes, your thank one, you, before, we've with Thank had a Number ago. over We compliments. I quality you said year

issues some eight last automation ventilation. is to regards think in year us that behind with six to regards with heat months in quality. our to I But

mention other the The me heard thing just in flower. you

heard pre-roll some is lot coming you is, is going to in thing of where me of mention where The and bigger in the a regards growth the from. that there's marketplace other on change

team has Number the in invested of taking job great we've None out you taken will to we've I So, greenhouses in regards heat to yes, here. capital with costs, summer. capital the three, last automation. number affect ventilation this in tell that one, that in invested Number quality. regards – we endured been done and but two, a to has out

not good are So, in some here have genetics the to that we in potency, I to in costs regards good our quality. And that place we're today. regards hurt to feel And here in by the with a of amount that products are that the in. boards is And of by the some Tilray different the are coming the accepted there mix new products. evidence being of place products new control of of the product,

Got for it. you. was it me. That Thank

Thank you.

John Our with question is Zamparo CIBC. next proceed. from Please

morning. I in positive cash And free Thanks. wanted your business units. free What flow cash was closure in cash to guide, free on operating quarter? your adding on Good you're flow. start not the being

basis So, for as it should 'XX? be not that may F on interpret we consolidated positive a

morning, Good John.

be that's cash just -- to that, in And we're free flow going the forecast free business We So a accepted quarter, the generally In flow across units. our positive for operating pretty year cash million. is saying measure. for were is year. about we next burned $XX.X the

getting negative, the more year. but for not be I'm that might you're So, sure positive we're one or that forecasting where

to this year, some into And seasonality, John, just it inventories big regards out you part it our just come into our a a seasonal of our of as is lot in is we that of go building busy as time.

a what for. is used the of lot that's So cash

I then the understand Okay. better on second my just guide. is this. EBITDA to Understood. like question And would

$XX synergies savings deal. from Aphria F for, legacy calling the million of HEXO presumably million got you've from You're million from million in but it, improvement $XX $XX $XX in deal, the the to call targeting 'XX, you're incremental

cost with $X saves in the additional costs mentioned remarks calling million million for already. savings savings you're those now split you prepared you an $XX earlier If in equally,

all us kind square Thanks. costs So these help you're into there it incurring? are multiple you 'XX? 'XX that, or you F more that just and understand anything can of helpful. be incremental us of synergies is Is timing help Just that can would the

starts June one, number timing. Not everything X. it's Well,

spread the I So year. out synergies a of savings and throughout mean, lot are the

our next an In is interest, here. some to HEXO, grow And not it's the get to which EBITDA. go of as over you'll will we we up of the XX out infrastructure G&A the thing see it our in business, months. building as basis that invest business the we So is, regards annualized is in to continue other continue

bring yes, the on So will here. include the we additional have headcount, and we of we're services, HEXO as HEXO getting adding to some provide people production just not fee which additional nothing, for adding

coming of of offsets in. that So there's G&A some

infrastructure three, G&A. So HEXO number EBITDA Number there's two, one, not it adding timing. into in is interest our to and us would of to go regards all which offsets from here. it's additional And

so helpful. Okay. That's very Thanks much.

Thank you.

question from Matt Please next Genuity. is Our Canaccord Bottomley proceed. with

morning. Carl. questions. one is Thanks the for taking good just Maybe Hi, this for

if of the color the anyone going. I companies LPs of with comes could more much that charges, wondering get independent million these Obviously, Is on of That's the you more listed a and severity of lot little it went continue that's there into factors to Just a some decline. impairment something of $XXX operations vectors that. how to a contributing other charges, deal are when to valuations have how impairment of had factor? of that

charge you that assumptions in business segments? how that growth is on your things curious versus independent factor like risk just have implementing or So or the I'm

know as I well. in background, Matt. Thanks, CA your you're

understand this I well. fairly you So topic know

a want to that First non-cash impairment off, charge. reiterate just I is

of situations of that, recession, market formally Secondly, calculation not the market look values for an dictate if the in stock right into a it's recession you got factors number go yet. right? entities. price if there are a cap when that called We've on lowering in and at a market effectively And so impairment we're going now, what's been

impacting of key interest calculate a component impairment, the pieces is return, right? numbers. of when rate discount calculating what of You've are the to all one have got required we impairment that that of those of the risk-free our rates is, so discount rates interest rising, Inside rate. is rate, And key

coming US down out at future had flows, currencies. we dollar looked for we As is our cash the cannabis of The against adjust business, dollar. to Canadian changing also

had into inflation. equation the also on factor to expectations We

non--cash in production And portion really conversion some think on of that really would the HEXO pieces the -- belief well calculation is that you to you those -- ready it in getting difference, some at the That's million inventory, goodwill do, has look of of going $XXX us of what transferring the it those is us of change some to when a on of coming of intangibles. the We I to of that it all if resulted as the doesn't the was which put division, so, that out number, into but say, related caused us impairment. to together, that base I to related taking think was sitting $XXX take million the and [indiscernible] they're about production as $XXX products rest and HEXO. was million some of cannabis

Thanks. taxes regulatory at maybe Canadian in one specifically kind look a when look saturated we even in stakeholders wholesale can been tailwinds committee now particularly the how crystal LPs pricing? meetings at when have Very with helpful. further investors type it [ph]? like the to the of looks one as and front? area question What respect relation anything Toronto And these punted control, a these anything a to for retail But it. now, are It on some the that of might Got or comes Just potential of me, the changes. that that you any out to change environment, road or high of down that But Is is the just excise hoping and Tilray any but market? other is for IMA guys better cautiously? there for ball of something it's are questions. more

and we we're lot everything produced let has and excellent an spending stores that. grown will going of of With retail LPs, the the facility. I in answer to question, a to think, think dramatically. number the Tilray, But Blair within regards change I'm market. time number it's Listen, on of Canadian our

quality. consistent grow, getting you're So consistent

you margins You our see what our see are. are, efficiencies what

there way is $X I on going at the with with about And that over working has absolutely it, to second, Blair think talking of you talking sometimes market. if yourself we're to cannabis contributed that listen, So go how out change in been alone, to was that, to is I and government in government year. billion about but in positioned. has XXX,XXX cannabis Ontario come $XX tax. the but last Canadian regards going jobs… look think you're excise last back to to in and to four regards let the he in good infrastructure, be $XXX over group to building feel a it there, to billion cannabis out talking contribution But the the when market, over it's delayed million the taxes we're is in three-and-a-half, government, years. I'm speak In the from you're

dollar So employment back it's It's of to that towards contributing here. taxes point, -- every lot a of dollars. we tax produce $X.XX your contributing but about goes

still still the is and So advertise. go government about doing products. talk can't We our We well. out can't

Blair, you And to got add it. pushing to that? want anything changed. for So to be we're there's

No, say with in very active Yes. from CX. Ottawa successful we back an standpoint, in and LP would I very, event we're group say, May. a what had is aligned, very I just And would the

to big the being a THC some and to you do in we of are that said, which move. couple the we positive certainly, categories, Irwin I adjusted regulatory limits environment. ball, that, while have So think is don't a we crystal alluded see as need know in that, change

from today, whether there's measures or We going it hopefully, around a punitive just expect on, excise advertising. CBD. Certainly, of Health to Canada lot see something be

with continue to hard. So would council, will we continue the and say we to push I be. we're really very active

Thanks. that. Great. appreciate all I

from proceed. Sandler. with Lavery Our Please next question is Piper Michael

Thank you. Good morning.

Good morning.

customer in I to a it touched this just Israel, pause. was market to about come like by something it. it it's Israel when you it guidance you bit, little to your you specific. just had driven for to your wanted Do I maybe on then said a pointed talk Aaron's reluctance know conditions, but But we of year? question. entirely think maybe X market? sounds have sales And to clarify, think Is you instead and this then the I to the mentioned on back execute I potential

is is million zero we're X down -- a Not out not Israel people. It Listen, market. Again, on sales, sales. but big I was think

things. over There's, sell it where XX countries there multiple an growth looking -- three think sales were opportunities. was of markets a we're We I area where lot we into are there. got in at

we think into different can way I Island going we there. change last there's need sell on And to least, something, lots in paid. regulations the not sell when of you get but

So that's important to happen there.

And it's Denise. Michael, Yeah.

with we been on Just to there issues to have the to payment. exactly Obviously, some sell experienced Aron and on add about what been that to market is to has in that get because want said we point paid payments. and want

almost I changing environment is to where But the have add the in Israel, we there's lot There the factoring other thing that regulatory put fashion. requirements Israel. one we're think additional like no thing question pesticide of whether of are there's would also testing. additional on a sales in an I are arbitrary

sales. We are actually in factoring

rather having facility perspective, a CUMCS I one from it is chain is totally presence rate and to note, Israel, building are we is which thing fashion toll that The I we important our a think, bulk -- compliant. certified out different building in in is Israel. think We supply are looking is a go at than into brand looking a where simply strategically sales at would out

comes the for ready pesticide additional all are testing that We online.

So the we decide sell we us. are, to ready right in conditions Israel, market fact, the right is and if to and it when that for terms

out out industrial one to of ones facility the coming into Canada. able of the our sell we're of to be certification And right with only Portugal of coming instead

right we're going -- will will sell we paid for. sell it's we get knowing when there to So and

Okay. And love helpful. follow-up just That's question. to with portfolio a would

in to wanting beverage pursue mentioned You've more alcohol. acquisitions

say of now two talked of could -- there equity? the or And with of What have or to about consolidation looking what how take? to also bigger a relationship for push conditions guess, you the arrangement are those? potentially the take You've like to what benefits it priority would you for, you catalysts between HEXO maybe further I is in stake how would further. and do go ownership you it order want the HEXO it

HEXO. again, company, the our you're for here. its vertically I listen, And XX integrated much where So ultimately, company number radicand. together, But at be wants there's one, with brands. a we grow a you is good brands. what deal the a great sharing It's company. we sense. sales. and to one what what a provinces what it's think of Today, over our in the be look needs. been than you facility two think Tilray be this on the take and much There's deal the to And is consolidation I've XX took that look different Tilray grow, I grow, that not what, and and Tilray. HEXO, XXX number There's we $XXX chance. Canada of too and will No great I -- taking million with you about, what, get what's XX you But in think Aphria there's two And where number want is lot million they own growth million, said cost always have sense. Canadian I going has as is you for We come of able at And efficiencies, distribution than marketplace, out. a and the LPs. the we'll made represent company makes we're have and look market ingredient there, they grow there other much that's are to vertically your an branded think, integrated. to vertically important population and HEXO own people a on very we grow, on and of three-quarters distribution, here consolidation very have branded integrated on complementary over have

that is Canada alcohol our of great comes largest the Brown-Forman has, the Just to like or the regards think or the I'd fronts. Southern in use look additionally, the love if at margins industry distributors. it's three-tier in to Number adjacency and have what we through HEXO There's distributors comes the spirits system, business. if We business. going okay. would US In on business, salespeople the and street. think in numerous take on regards regards beer out we one, that's into to that's you which that multiple Tilray a Diageo in to what go cost great one to if a together. We cannabis place, Glazer, that it's in

So about a lot it, think if adjacencies. there's of you

today. the a we category are The is thing way other in looking at wellness big

in there or As the Tilray adjacencies branded builds experience we And of we our there's consumers. think great Gen-Z in we out to regards baby-boomer area. and and have its consumable business, think Gen-X lot wellness a

just color. Maybe helpful That's follow-up. one

cannabis mentioned legalization the alcohol. three-tier be gives system federal in confidence the on You that What handled you US? the way any for same would

is don't three-tier You know, here any the I have It's listen, don't system have confidence, going But I ball. in there a worked the been well I -- away. crystal alcohol. wish, It's any has forever. not

it We'd way you has have be in love we or And it, alcohol if look to our distributors THC it. system I have CBD. infrastructure thing beer then may the business – think, at business, and that that have distribute here, with that today today, and And one we of or say spirits our a go. would this business I an has spirits today beer spirits alcohol three-tier business. the in a

There's THC and THC chips or infused. has back else beverages own be with which infused our of in infused today. and And happening opportunities the some food. has happens, legalization look of to see not come So Harvest whatever it. reason with the CBD business the are the or if And are mean, that is potato day top just what's that case, I why or our will that spread industry and big one biggest we in at that we rate yogurt a that. No Manitoba -- if system, no I the grow with thing, can't on asset. we can out one cannabis that's US CBD put hemp a that you distribution there same want you buy that's in

Without have circled it lot what's in setting to but will of to we way. going knowing happen. happen, have every the infrastructure for things a these So we

Thanks Okay. much. so

Partners. with is question Scott next Our Capital from Fortune Please proceed. Roth

A morning. of Denise there in progress there, And on from by on credit, Good Germany But a maybe -- Germany quick, competitive international environment competitive side. you legalization for Germany? be will are the potentially on are me, little and you Thanks a But one seeing lot for the update here that for XXXX. just of, kind pricing questions what or pricing pressure what early Yes. the of real here. the bit great? on in update seeing commercialization just

Yes, sure. Hi, Scott.

more say, landscape into So extract trend. coming the are competition are competition. are Germany, ahead whole posing both and competitive space into of watch we We flower, the the and on, the and in continuously would space. terms stay of competition more in and the come I seeing entrants Smaller

complete. One, foremost to I on barriers think entry. mover permits. market, just along radiation, is not for to looking process thing this There registration streams a products, months we to one testing of require stability received quality [indiscernible] only we also German are just market Actually, can been XX The high flower. we’ve That take an one it’s side, regulatory first advantage morning. also very and and on our of at not have key is to first XX morning months one streams on a five but in And top this Germany the higher enter. was definitely here. easy feedback which lot of

on average our So watching still as compete market pricing am we continuously quality we dry We at place seeing look are that high flower Right entrants also flower pricing around will could market as point. I are will we inhibition. price as pricing grow our and on continuously now low €X.XX. And €X.XX seeing within the well.

we very at to that think quality product maintain that very the are pleased in that. with the is high having ability a market And So level we place. pricing

of for health and both of website just We well. our weeks providers We are a and also information this that couple plethora which obviously provides with WeCare education providers of – about supplementing patients. all ago, as a healthcare launched patients

innovate our flower and portfolio. continue to awareness across high-quality and we maintain So brand continue build to

color. Thanks for leave I'll it that. you. that at Thanks. Thank

Please Fitzgerald. And Zunak Pablo question is from our proceed. final Cantor with

Good morning, Pablo.

Good morning. questions. our for Matthew taking on Thank This is actually you for Baker Pablo.

to the shipments? regarding the hearing then market just in And to able remind Are you of to Germany German been the you. from Going you Portugal on shift us what you from focus market. these consistently Canada of German Portugal as things we've can versus different flower regarding source market? types Thank

or Yeah, anything Portugal. so thank question. about you for from I am hearing your not issues shipping

a -- weekly hearing so on shipped not Germany really this basis, We fact almost sure. into the I'm that. In first actually is time of

from. Yeah, I am that got not sure where you

adult And as well, use. we Portugal use, is which adult there right If medical use is to can in around when from of the of provide we the legalization, cannabis the question adult for also have are for on now use ability is there German there Germany, Germany, government. But we provide believe event room plenty in provide facility expansion we from is adult well. and both that working our the

in Okay. recreational for from this? to just anything follow-up the decides answer, guys I that Germany to for do to alluded only adopt scenario to got in kind And EU. of question, you it. Would you cannabis then within my the your it need but guys import

Yes.

– the adult we today to as facility that increase for I and have our We to use. capacity mentioned, bit. too, have allow the for a expand quite production So within we ability production

we a We with also the specs the government officials. believe before we cannabis first to lot company were German that given that the developed medical German of to provide fact

as provide with we as use learn also they in work obviously are legalization. market. speaking German the of a to What would the for German lot understand lot We been I what officials use adult our experience use Canada in There's questions. give to currently build in adult are has best in And a credit be that framework legalization. problematic out terms official they and of what of trying for German adult as

mean, within And here. and able do is you in could to it. if I to But be of have does have anywhere I two think the the Europe additional immediately it capacity were don't by company allowed enough And capital size. important can to only product Tilray we that have the if German scale we supply know-how, too. thing market. we to the this there's is But GMP, absolutely of Canada, took sort that, ability expand both ship from do facilities and

So probably that we're the would we the do able market European only legalizing for prepared upon to well and are company be it.

the for color. you. Thank

you. Thank

back to call retail to the Turn over the questions. ask Noorata shareholder Berrin

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So very our Thank today. your you with call for you. of rest much the joining that, enjoy and thank summer,

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