Tilray Brands (TLRY) 9 Jan 232023 Q2 Earnings call transcript

Greetings. Welcome to Tilray's Second Quarter 2023 Earnings Call. [Operator Instructions] Please note this conference is being recorded. At this time, I'll turn the conference over to Berrin Noorata, Chief Corporate Affairs Officer. Berrin, you may now begin.

morning. good and you, Thank filed By now, release, of the press has access Tilray and should is available have been and which tilray.com section website to this on SEC Brands SEDAR. earning at everyone with the the Investors

call, referring to we which financial various investors. be information useful provide for will today's non-GAAP measures, On can

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

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

of CEO business. I'd joined turn the call and Tilray International. Gilmore, EBITDA recently our Executive question will Faltischek, over as year Strategy and who Simon, of team. to and members Today, Chairman Also a Tilray full Blair Irwin flow from quarterly President segment Chairman for Brands Chief guidance. of provide and MacNeil, adjusted Carl Officer this will joining President, well our like Tilray Ty our And leadership reaffirm of Head and free as Canada; senior hear Brands the you Merton, as key Chief Officer, the Denise Chief Officer, Beer Inc.; Simon. Irwin call Financial who to review and now U.S. financial team cash are

line season nice real and everyone start and into and new most and and Thank platform momentum across packaged the you appreciate to joining consumer medical morning We X alcohol beverage the products. this head create a lifestyle in you, Berrin. goods had cannabis world a to And leading company and around cannabis, XXXX. consumer hello, wellness holiday hope priorities: this a adult centered world's with use everyone. We year diversified great

profitable the Canada, These across we're and over long world. priorities in market our in well realizing to leadership include: market when growing a growing adult-use position occur. medical and market our does recreational to cannabis and #X pursuing way to business growth most strong capture term, share drive share which the now Maintaining the Maintaining federated in on largest our position the our in this. legalization market leadership cannabis legal Europe and position core

markets. cannabis that with expect delayed we've CPG leading invested positioned the adjacent consumer in consumers U.S., wellness beverage And we happen products and brands the across ideally any time key in do to federal in lifestyle are despite craft and cannabis alcohol not resonates winning in at which legalization, that near powerfully future, profitable

does marketing cannabis-infused of legalization broad we distribution focus and their enter our business brands. networks and will U.S. occur, and CPG a set opportunities cannabis federal capture leverage When creating essentially and by to brands

and emphasize environment. Tilray built cannabis our through our of potential both And including acquisitive. affords for on the diversify want foresight to opportunities on opportunities it and Brands diligently while course, of expansion, value economically to producer. context We are growth I not driving low-cost our but the growth, that and within sheet organic adjacencies also, certain our cash last industry-leading of focused because balance position optimizing global strengthening operations remaining on least, us

leader. good cannabis diversified of confident as fundamental consumer the lifestyle am Tilray Brands most packaged the in company potential I and

in We these made X, have against notable quarter already progress priorities. exceeding

is a despite challenging it line top significant improvements performance. evident flow, As cash operating in by

cash integral generating course, on We enable view an our durable as of value. delivering turn, [ long to sustained part shareholder highest ] business a priority us have, deliver free model, of in our

Tilray with Brands and team cash of remain We flow proud making scale, quickly platform smart changes. thing. and objective even market to against to one moved adapt our decisions decisively observers we breadth And of Close our strategic quickly the pivoted agile, accomplished. our know and I'm free highlight executed that to them the sheer the and with

For key march cash facilities longer-than-anticipated because we example, temporarily cannabis legalization production during our to opt build quarter, in in markets. toward the the of by slowing down

optimization headcount want platform. top appropriate line efficiencies I the progress is our initiatives, our This plan. the initiatives and line and have at highlight with cost our given costs. included made built-to-last I cutting this and to incredible market drive first, the lead and discussion reducing outset second, this to we other to start a bottom operational want

when removed of to a costs We million compared $XXX ago. have over cash already year

reductions, ago, agile point which us shortly, over combination, this I'll cash positive closed of building of include synergies Aphria-Tilray cost effort efficient million and an flow operating from $XX $XX to The cost These which foundation. free achieving represents the components have realized and flow of X nearly the detail cash business positive guided for starting million years this quarter.

cost increased been was million revised $XX which, to savings, from QX target completed. million in Recall, of post-closure that as our has $XXX

low-cost an have cost the Beyond achieved $XX of million status, million synergies, basis we our plan, additional on we to already $XX.X the further which solidify run Aphria-Tilray rate optimization an annualized launched industry-leading producer. as

to debt marketable of fixed over and interest robust solid approximately respect XX% to unfolds watch in cash us our balance with in our opportunistic This set the U.S. share global adjacencies, and elsewhere. And sheet financial legalization as what foundation be rates. enables market CPG of with with cannabis securities, $XXX consists we and million capturing of finally, across

potential strong difficult focus balance our and a I sheet, recreational to producers position licensed geographies both and XXX in conditions, top maintained now both Canada, caused price are share maintaining high structure like lines reduction business roughly seize and we across pressures to operating to line opportunities our a discussed attention cost forcing initiatives ongoing commitment specifically. In Having to and by would our operating excise despite consolidation industry that tax, today. market compressions #X in your cannabis

basis the market these #X Tilray by with XXX market while X.X% cannabis Despite conditions, remains largest producer challenging In an QX, QX, to in the we the license Tilray next share expanded XX QX. in position lead points share points. basis led

except utilize accurate Weedcrawler for points that reflection the Recall outside marketplace. Our for where Quebec. share data of all is Quebec, of basis we more markets up this sourced of was high XX fire

approach continue innovation, quantity. We to over build to a quality thoughtful

in had are regions, we proprietary and In QX, in products. we consumer in regions, our segments leading segments our understand and categories leverage research We portfolio. launched products those what to values ensure consumer where gaps clearly we

an As of this, focusing RIFF in on we example portfolio. where flower, we a segment gaps relaunched our had

will Moving easier our environment. thoughtful forward, the be on innovation also

production low-cost production and cannabis the In manage flower, landfill overhead vape, non-infuse further packaging capabilities will to [indiscernible] pre-roll industry. XXXX, convert more vape production, and efficiently stabilization have sites. infused from of sustain today, Tilray help pre-roll we Canadian all help and kilos and Canada flower internal diverting plastic In beverage in leading formulation automation, state-of-the-art XXX,XXX away and

our existing in industry have numerous out partners expertise, partnerships. leverage co-manufacturing reached low-cost environment and capacity to We to

We understand of the cannabis nature challenging in Canada.

a to consumer situated in advantage coverage allowed think In be we we to effort best cost the during cannabis intend we thrive dynamic we course regulation. establish are and result expect we're of Europe, optimization countries continent to insights, together term. instability. on have and across working our investment stay a sales these the playouts innovation, the in to momentum seeing Our long points, for us market-leading XX time to collaborative stable From that as

legalization embraced of business next The broad having positioned cannabis through years. happens, EU to cannabis an on When already European seize adult-use our has in to and the over built expect unrivaled facilities with Portugal opportunity. the strongly offers Germany. medical platform couple we're follow growing this further scale

cannabis we're to treatment demand for meet of growth EU use positioned benefit changes of by from acceptance by of which supported economic positive of conditions these of meaningful adult-use believe the growing legalization supply, our will assets well. cannabis for because and exceptionally numerous The existing industry adult come shift GMP to support followed end-to-end when result and to medical is our as We leverage medical as legalization a enables that happen. growing cannabis us to does for

with quarter near This in the all XX% Europe in in a so industry a at negatively ongoing doing least medical term, are affecting prices cost due with In is over inflation, inputs, year because contending but in of along our increased by part consumer war almost particularly on all quarter currency key soaring the second is which Germany, Ukraine. difficult the our to environment economic business However, and X% in Tilray-branded and is prior basis. energy affecting behavior. constant the others

approximately have low-cost $X In X. In commence as of shipments QX Therefore, be in of distribution products extracts improving producer developed consistency expect order our submitted our relentless on in of that structure medical well cost and European Consistent both cannabis the additional we first focused the of million plan Europe. Poland, approach in cannabis medical new with cost our we to for of business. are T-XX our we medical our a cannabis Italy, completed as and X we of doses quarter products. take quality to all our to out businesses, our in

that believe strongly being high-quality We low-cost consistent our Europe of that in are producer differentiators competitive cannabis.

to cannabis with both strong CC Our cannabis. throughout credibility Pharma, sales of integration bringing pharma our and Europe, function and to Germany teams in Pharma's relationships, improve our enhance CC medical

the continue our to to Europe solidify throughout will position. Our regulatory expertise navigate regulatory leadership challenging landscape

assets exciting see resources there we strategy, near-term our anchored across In us time are by summary, view the as tremendous our ahead. we for opportunity people, an while some and and this Europe, headwinds,

cannabis Turning very now important to always us the the our CPG portfolio. integral has our strategy. to in U.S. participation adult-use market long-term the In U.S., to and been and

created remains directly as industry newly as U.S. business, the business beverage in a not executive, and the appointed Ty position. that plant. To veteran optimize we of However, Gilmore strength long our U.S. business, of engage illegal fully Beer in Tilray's federally President U.S., will value touch we beer cannabis cannabis the as and

joined President of spent Ty where majority beer Glazer, Vice his beverage that, to and since he as an Diageo. career prior served XXXX. at from And us the he Executive

is the the may SweetWater you in most California. available XX including craft recently, know, brewer in As tenth already largest now states, U.S.

year Alpine the in distributor distribution U.S. past our and partnership X and California SweetWater have our largest brands, Green Flash throughout vastly beer the expanded with iconic Our Southern Reyes,

point York. New Its by In November, has we beer growing price fastest acquired premium been Montauk Brewing #X Foods, driven and top points Costco, success of portfolio, the Metro also product craft X-Eleven, King Target, brewer Kullen, convenience Company, Whole including loved craft Shop, and Speedway Trader over Joe's, its and in BJ's X,XXX stores. and & including distribution national retailers, Walmart Stop

strong The deliver and as EBITDA Montauk Brewing we expect to revenue accretive move will immediately and it forward. adjusted was EBITDA, transaction we growth,

already beverage further key driving Montauk national its portfolio distribution to we of rounding existing California, the presence Connecticut, and beyond Additionally, Montauk including in the leveraging U.S. our infrastructure concentrated growth out expand across craft brewing markets, network Northeast, are presence national Georgia, SweetWater's across Florida, while significantly the

poised Republic I'd for expansive lifestyle through the And across Columbia. Spirit Distillery. like network and leading and in of to Despite brand spirits is headwinds briefly customers states company and retailers business, bourbon with distribution District on Breckenridge off-premise Distributing this industry, XX accelerated National growth discuss brand the our

move which important we turning a segment, very Now as is segment forward. for our wellness to us,

grow and XX branded in across in segment to hemp-based American wellness hemp markets. established is stores leader North the Harvest Manitoba X. where its foods XX,XXX business, product international Our quarter world's continues Manitoba Harvest in food distribution present

keto now Harvest XX its multi-outlet and better retailers, in Foods, in weeks top market share retailers is reporting. in deliver brand dollar Sprouts, a consumer our in in in the to branded Manitoba Canada in Walmart play seed XX% Manitoba plant-based, market low Harvest XX%. XX X and X, pricing innovation increasing U.S. and The The growing leadership than given remains put key of its expansion, coupled near pipeline within last in can drivers Manitoba Kroger. and quarter the quarter of in each include expanded place distribution growth hemp over delivering a hemp interest they U.S. XX% continued Harvest strong with products role share position share carb growth dollar diet. Whole

[indiscernible] through Flower of U.S. Happy in CBD launching beverages e-commerce platform in be the beverage partnership with wellness will distributor alcohol new Glazer, our the CBD Wellness leading via Tilray a early direct-to-consumer and beverage Southern

CBD brand on beverages the hemp In expand business states wellness to come. markets continue focusing short, foods out throughout to XXXX, of permissible. more look where we our into key build will We and to with is

I will call financials discuss over Carl to that, Officer, with detail. now And the Carl? Financial to Merton, turn in Chief our greater

Irwin. you, Thank

focus on more efficiency been so Our environment. flow cash adjusted and but EBITDA always economic critically even important, operating or free in today's have

focus As EBITDA. it decisions business the adjusted flow even and occasionally we the adjusted we between are our and EBITDA shifted, cash cash the comes EBITDA flow. has free we current free over chose of past, cash balanced often if year, our free in adjusted prioritizing expense In flow at

almost over of $XX last year. the an are $XX and These positive million ability cash improvement million period through cash of in almost million free flow generate quarter, decisions our evidenced $XX from the same flow to operating

Before are first me remind in dollars. adjusted everyone with financials accordance and GAAP both GAAP throughout results. will presented our and And U.S. call, our non-GAAP review we reference are quarter, in U.S. that let I this

reconciliation reported under our non-GAAP results Our of release our measures remarks. contains the during also to identified earnings press a GAAP

quarter, of declines quarter ago from due For from wellness X% $XXX.X net year $XXX.X These X% are revenue million slightly by lower revenue and alcohol million. down offset quarter was and sequential only million, were beverage down net the higher the to distribution that cannabis the of revenue. $XXX.X

a the by the dollar, our net of U.S. EBITDA Similar revenue On and dollar. our and to year also and their alcohol sources euro adjusted impacted the revenue rose ago income slightly base currency to being are million, particularly currencies increase given the strength million recent constant largest Canadian quarter. $XXX.X up are distribution quarter. XX% was our ago million quarters, $XX.X the our profit beverage a businesses revenue compared gross from $XX.X basis, with Reported currencies year to in the in

XX% Adjusted the allocated realized cost reducing from from HEXO This held our numerous savings offsetting possible production our the coupled at gross success transaction. made margin with by revenue. implementing net overhead our of in reduction despite programs, in intentionally was revenue part

million compared to in quarter million prior the net of income $XX.X was ago loss Net million $XX.X the $X.X and a in loss of year net quarter.

$XX.X our $XX.X to $XX million in million, quarter from ago we loss or $X.XX were adjusted share per was Our million year improved record EBITDA. able Reported the adjusted $XX.X XX to down net positive prior adjusted to quarter. million in compared consecutive $XX.X XX% quarters and to QX in the track Still, extend EBITDA million last year. of

due gross an the in The as as negative our cannabis was expense. of increase decrease well impact margin bad debt to

even quarter for improved the being over the flow up QX, stated took the relationships, evident EBITDA would are have reduction we during free million in resulted have and if this million, prior it cash the positive, focused past quarters, on adjusted our EBITDA. the been we several is $X.X by and existing onetime significantly As we a business absent $XX.X from cash return keenly in adjusted flow charges Further, quarter. in allowance operating

all Turning of to cannabis of offset cannabis which from year a a in cannabis related to to reoccur. from Canadian $X.X $XX.X marks do million business of not XX% net This international including in related revenue, year ago $X.X cannabis tax. cannabis period, returns, million comprised representing quarter, international revenue, the our X.X% we resulted was expect medical which decline international million revenue reductions cannabis revenue revenue to in $XX.X prior growth largely million, charge excise in million Canadian segments. $XX.X million $X.X in of Gross the adult-use revenue, by

Canadian basis, the in On increased compared year the prior decline in $XX.X only a to from XX% percentage decrease profit constant The resulted was currency gross in decline margin of prior $X.X XX%. million in XX% the while the million $XX.X dollar to from revenue quarter. Cannabis to XX%. year quarter, euro the increased million gross the the

disposal strategic is sales In decrease cost-saving Together, of an by globally initiatives. to of slower-than-anticipated the shift headcount adjusted by reductions X.X%. QX, assess margin continue as gross by cannabis in to cannabis focus production $X.X combined in impact from reduced return top and other gross margin result a activities priorities costs operations, a we million impacting a ] or consciously reducing both and Israel the pursuing cash as a desired profit flow-generating facilities in on to exit discussed. as [ our these We as inventory other also recognized line reducing operational lower onetime and had Also legalization previously in our incurred well Uruguay. which gross adjustment, costs

This We cannabis legalization. Distribution markets million activities XX% revenue, in stabilize requirements quarter. as X% basis, market proceed a year to has derived Canadian impacted and CC increased was have U.S. in view from revenue of which these declined of predominantly euro. temporary the the cannabis additional strengthening to supply through the by $XX.X prior European million currency revenue. million with an $XX.X for relative $XX.X as would the dollar constant as On million the Pharma, primarily to $XX actually

$X.X change business the This increased higher-margin in to from profit reprocessing distribution $X.X gross XX% in medical quarter, prior line. increased of sales, the million gross distribution was on to exit margin product XX%. million result and the year while the mix decision a including positive our Adjusted from to focus device

larger profit of our approach increasing think to we despite we utilization margins not ahead, facility. drive Looking we business full continue can as revenue

primarily of quarter and our in $XX.X XXXX, Green alcohol net November than our acquisition and the December was of with coupled million which was We generated more the to of to our revenue, in Montauk $XX.X recent higher Turning Flash million. acquisition in beer brands year segment. XXXX. due Alpine Breckenridge beverage This prior XX%

We Flash brand acceptance pursue acquisitions. potentially Alpine, out leverage other with remain Green as Foster over increased expanding pipeline an brand on bullish and and, time, California, course, our acceptance in of regain this we build segment with extensive distribution, innovation SweetWater

XX% XX% Beverage step-up million from million. million prior which price $XX.X profit in alcohol profit, gross $XX to in includes $X.X Adjusted increased rose gross $X.X accounting purchase million quarter. the to year

is startup the expansion, when However, prior yet gross decline decreased This XX% result not compared SweetWater of to in period year still XX% the the had expansion adjusted year. the last the which in in operations from is a begun. margin of same phase of Colorado

Also, were comparison and the in Breckenridge the margin lower than at and Montauk completed prior SweetWater. slightly acquisitions year a not operate

for Adjusted wellness prior year. XX% $XX.X our the up Finally, slightly $X.X in gross while to margin segment, decreased year from wellness $XX.X was to increased XX%. from million $X.X revenue X% gross million profit quarter, last QX in million million from

Turning in European to QX flow. of We the were to our back positive pivot generate business businesses lines no accretive longer can from both topic steps free that focus the cash that of took distribution areas that so on business during cash flow. and cannabis we

with our in period $XX year. in reduce roughly a from cannabis the necessary the $XX million the production cash improvement facilities achieve have million provided flow This, the free cash along almost decision to strategic to same of savings quarter, last

of ago equivalent period. and the year $XXX.X cash was securities balance XX cash, million. A Our more than increase November from healthy million $XXX marketable a as

meet that over allows us million requirements time to to capital decreased Our same balance, million and our horizon. from $XXX.X which capital operational working $XXX.X

business industry-leading cash minimizing With our cash aligning questions our flow, our across continuing for properly I product For year. we with being aligning on segments fiscal sheet, million conclusion, covering free from expectations. open adjusted generating EBITDA analysts. remarks the positive am In conclude free will our and balance reduce with and $XX of our and million demand, improving are that, XXXX, all prepared lines to revenue the our of focused to expectations reaffirming flow I $XX debt, CapEx expenses for thriving

from first the Operator, take questions a what's retail Say few the our Afterwards, shareholders we will question? through platform.

Instructions] with [Operator line of from Vivien the & is Company. question Our Cowen first Azer

Azer. for on This Vivien is Ma Victor

seems new like you continuing is dollar as So that are know share first the and trends XQ. I some losses some and from these time. tailwind comment fire over sequentially vapes. recovery SKUs on new based dimensionalize you on address also there will headwind pre-rolls maybe in stickiness off, legacy innovation. and SKUs color But to can pre-roll share Quebec, the the losses then high innovation ex in offer it vape gained and of But the still from

let Blair different with we're it. to with able lot do has the through how a timing in how he's because you with pre-rolls, to many just jump think what's And when I'm the So of the here products us to have in and just products it will we But about have new talk to call timing. I these get you happening into and going products new you jump want many provinces. coming that and Blair tell Blair, that out? vapes go and to and on

potencies Yes. Certainly, Victor, I'll and vape. of nature higher vapes, for thank is you, forward the Thanks, noticed and the question. fruit start what there, Irwin, we've in

plan So a point, side. on up X have from listings over and we potency next And pre-rolls see build Irwin's vapes XXX quarters. over new in us you'll definitely the to the to

traditional infused really pre-roll stealing pre-rolls. share to side, the pre-rolls, really from fruit moving On you're forward

And just in QX. We QX comment a us the be and supply on consistent with have that of coming very overall. news Good innovation trend. some stickiness you'll your big -- that see then

that If at sequentially you standpoint, from products look market at quarter QX a new in was XXX there a in Ontario was least alone, flat.

SKU moving our that definitely calculating some dilution there's innovation productivity So pipeline. into of We're forward.

very will in cognizant and next be very that leveraging and coverage the quarters. of with we dilution dynamics insights, category effect categories confident over leveraging these that, We're feel strong X our model leveraging our our of the

Victor, emphasize let me you, Blair. Thank just things. X

a down year And of points of in ago. number price year we're place #X year, prices as Number rival, share, new have compression out between potentially in over see taking versus in our where share two, settling the last market and marketplace. Canadian gets basis the have other one. share closest market, ahead has a and We a double-digit that $XX revenue, we distribution, innovation, almost in million new he to come think XXX our how Blair acquisitions I this plan it's back the

we yes, listen, some share. lost So

what Canada in I tremendous, is situating Tilray the a in think is And coming that very in it's is price I overall. today very, out timing. good But should compression, growth considering share and where marketplace, considering the think -- is innovation help place.

to And just my With portfolio? annual and also And us Montauk. if second beer question. for for remind and could down trading alcohol and in of pricing pivoting noticed you've alcohol consumer beverage Breckenridge wine your [indiscernible] beverage now just curious in your you weakness SweetWater algo

second, switch just sold Jersey, a it Connecticut #X brewer I'll New brand December these from in some New putting in only in but New just still for to acquired SweetWater, which Montauk, the York largest with sold the we basically again, craft over is U.S., craft we're tenth brewery together. York in the in So Ty tremendous City, and

let talk some I'll and there we've it, standpoint, some I price pricing had been have on it little standpoint, From a endorse to pricing a Nielsen increase picked but the higher We Ty about probably opportunities. taking of costs. up From think a slower distribution. is some

picked a a up Kroger lot recently, Just we standpoint. from

for to yourself? in a Ty, do you jump here second So introduce want let and --

also we're and consumer Yes. up flavors across segments, Irwin. super higher Mexican we're ABB. domestic Yes, Good imports, premium going definitely -- but Victor. seeing some trade there on, some going several Thanks, down on question, is trading

off-premise, the beneficial. So in to be we in XXXX, to we're that there of, as going space we advantage into and we be go pricing some the continue and see opportunities operate that expect of with take will will QX both tailwinds that on which continued

also products. SweetWater we our a And can that major into we've is as now numerous of spring. new the timing we move there be pipeline. done have in products And launched of things we when the will Montauk launch And is one and on

beer around bench which good marketing a have our coming up there's lot We so based of business. our [indiscernible] is

The some bourbon just great mentioned, other our moving Victor, some new RNDC in the nice vodka we've our our distribution. Distillery, seen and thing, Breckenridge something in increase to business some you business, over increase of

happy, see quarter-over-quarter on our business quite can we're and year-over-year. So beer and our up spirits you we're and nicely

back into the I'll Great. jump queue.

the question line Nadine The from next is of with Sarwat Bernstein.

me. Two questions for

in more all, we So down about out this first in international performing prepared think fiscal of the you detail that remainder the factors of Could break business driving in perhaps called part and this how the should remarks. the your weaker of cannabis you business year?

the between volume, price And my break you And on lot nice thinking you that Canadian the year-on-year. growth mix there's coming this question, quarters? to adult about growing sales use how actually are since Could down and second a see going there? over

Great.

Europe, countries think whether in in in we there, on can today, well on it cost. in we're just we to to let lot a on as over switch listen, we're can number one, we medical regards facility to going with economy on we the But Europe on I from So I'm can where going situated. blame it runs piece XX blame in -- over me in standpoint, over I But Europe Portugal, the the Denise, who our facility war, a operations. think Germany, situated sell our blame it our European

We spent believe taken going in to But out, our operations CC business we're is unit costs business operations heard our Portugal, our in in we've our Europe we going a to of lot combined and in No. 'XX? happen our into in businesses XXXX? how that it Germany. much me between Do believe time say Yes. countries Do will deemphasize. stores distribution in sometime of now which is Pharma, in the one happen legalization you to some in Europe, were we XX,XXX drug

So we have grow. with brands strong Europe business distribution with we a in

going that's jump focus we're legalization something our business. hands, want not to on controlling grow our Denise, that we add it's do to you Unfortunately, that? something how is and in but in to

Irwin. Thanks, Yes.

So what in business very in said strong on of in our business just terms Europe. building Irwin Europe,

about talked the market going in really, in active last is not deprioritizing mentioned, currently we certain in to Israel, past, revenue certain Irwin As few given Israel. the made in pursue that we've the we've volatile as decisions some countries, quarters, on

had look prior million it quarter year, quarter we quarter, last And in at sales. $X.X the you related about Israel -- if as to the the prior of year revenue

legalization are deprioritizing confident more business. chasing of very how profitable in we much are that sustainable adult-use So of also are medical markets we we And absence following terms business. confident the still and very certain the on by are feel lieu in closely just use, while efforts of again we we very to adult win building positioned Germany, Europe, even in well in

We business, when Pharma we we credibility relates credibility our doctors it that with them. -- to And when and visit pursue pharmacies, as with medical cannabis. we we us with are have CC take

We the with one are in in going EU one GMP $XX.X billion Portugal. located facilities, XXXX. And to be also is our a located in medical Germany, X well positioned market by market Europe

very, very about So business. we confident the do feel

And I at Europe, think Europe as we opportunistic. as look like I

the be didn't back might be it's there's EU, Europeans today, people. I and And I come million think cannabis think, legalized, big think and but working just U.S., a if no different will through you ready over than want we're There's sure happen, and And Germany if Ukraine population legal there. that XXX I'm the ready. okay?

we're there look our streamlined and got out, at And to cost we that of grow business have a time, We're look and we're with business. there. profitable going in infrastructure. taken we that lot looking a we're lot Portugal where how can facilities business because market to in opportunities other We've have spent our opportunities And that at of to grow going Germany. other European

in and In in is good market one. only we're the volume. The our Listen, is well the world mix news regards in a flower really from cannabis is adult where legalized, to Canada, Canadian with question still number regards use grow to standpoint, okay? your our positioned positioning facilities. second And the market is

We have XX-plus brands.

falling to that do an innovation tough And LPs. from going to market of a the and a tremendous business of to It's that We have excise tax. marketplace. with see that's other you're key there, out market lot

in million the a billion. gram. we taxes a $X.XX last in paid Canada as We company We excise X $XXX paid years, year; still spend an over tax last $X almost in

it's it's a wins your mix there, we're market. opportunities. big talk we to pricing going there's Canada? market, standpoint tough to, whoever only legal Blair, in believe and you just So again, And do a from but about which the want

Nadine. you in Thanks, dynamics can Yes, terms or you've was right in price the million a in over got it just largely look in general, in when Definitely. marketplace. I of ago say, compression the there would year $XX the market. at

although the are definitely those seeing of you relative compression. generally, on industry, Tilray So go experiencing volumes up price segments the to lot are a side

for So from driven volume standpoint, a the our us by it's business. really resurgence flower of

beta You'll hit marketplace. that strains recall the to earlier and now on are calls starting commercialized, XX that alpha in I programs about are talked having that now

real forward. a have point, the to flower XX% business. And pipeline the expect of we So moving still It's total about of flower is biggest to Irwin's segment.

for we So moving continue have flower of also of but genetics a innovation, forward. to pipeline robust very

And thing grow big those costs got the it affected continuously think to in heard them I for Blair. largely businesses drive be and us -- is right, have facilities costs. out LPs. going run thing then and quarter, And there these that we But glad sell thing now we we're other the to to big we because have I cannabis these you fixed And looking taking all the out. think -- mention our cash. I'm think is, will EBITDA the big the I to I And

are but there that's We'll to looking focus And grow there. low-cost others, producer on. that we something to be out going we're for

to thing lot of innovation. what of and sort new the other Canada drives The we're new. innovation in a growth And that's on what's focus is is going

you I realistic on EU that that adult one to you are commission? could could squeeze be regards just on what it seeing with legalization more, given particular mentioned If legalization outcome? focus think Germany, with it. you a the adult-use When Got -- a in

Yes.

that might it we expected later be we are, in early see legalization where might expected. effect that take So XXXX I originally we view as Based originally on than we adult-use think XXXX.

the effects open. from stop I it it happen the rest issues quicker. all think biggest borders know, to of legal of some for as Germany we other Germany without how Germany, if the Once do in yield, are borders that of going could it's And make you decision would are But the much there.

we business. we and -- our So listen, expand in have a how medical do place, plan

partially the the recreational that of even in is as is other ultimately, recreational. and though sold medical, use Israel in percentage today, countries And it's biggest

Perfect. I'll pass it on.

[Operator Instructions] the The of next is line from question Andrew with Carter Stifel.

just I'll ask morning, of kind I this question guess. multipart, one

to $XX sequential, reiterated million at you've the million. EBITDA $XX the for year, Looking guidance

that I expense was? cost walk one, going in consumption, that to the, Canadian adult what of through need incremental shipments that bad magnitude use repeat. to well Regarding the second could the number you idea the the get you isn't any achieve was of us half, hit us The give savings, step-up debt below

Montauk EBITDA of as a as in second well then on And from the beverage reminder the kind give incremental us of seasonality half alcohol.

Thanks, Andrew.

the which as had script optimization production, I $X.X the on on that QX. as million of benefits came is we to the majority There many and trying of then QX related about effectively of walk slowdown the in those see impact are -- about in was the The in And unabsorbed all plans. We coming Just million return. late in my through can. sales those to pieces overhead. out was quarter $X.X

we so plan. from $XXX had And optimization the Aphria-Tilray million the

hasn't I through statement $XX the -- that another the been in or year $XX flowed optimization just That's think full It's about plan million I to plan. still. the savings income has think One got of cannabis optimization we're million Aphria Canadian that hit the on we've total. achieved

then place to of able savings. we And be vast that in got have impacts back-end realize to the systems HEXO. continued loaded, those The majority we as was of

saying thing is, our beer same a coming more the regards back-end of savings savings getting expansion back-end additional And Andrew, is cost loaded. in as bourbon beverage lot cost and big business our business to RNDC sales in into distribution think alcohol, to Europe. Carl our with I are now with regards And there. There's was is out In of more states.

point, about big major its place part a lot talked But we growth back half, it. innovation, a to of plan has of Canada in lot it that's and in back before, a of a your with

of was growing it's taking right now Aphria-Tilray the can I job tell over volumes, our we've And costs. We've managing and out million. as you, of growing our great again So million. our up at $XXX-plus distribution, stepped done another the business taken $X-plus about with our a costs Europe out look we

We've in these is in key the producer being in working volume very, growth that taken growth cost very out and what's HEXO ultimately costs And facilities that that. with marketplaces doing our but is the company, savings important. getting getting other low-cost is

a combination it's So of all those.

our as As there. But crystal what we look you we do things into today. that's up know, see ball, happen

the The Alliance next Grey of is with Partners. from line Global question Aaron

me, your as talk getting opportunities to for a available So mentioned, you to double-digit in back you, just I you're to M&A in on remarks. share bit want specifically prepared Canada,

You talked to about market players in for doing obviously excise yourself. tough tax, of lot a business the smaller impacting there the addition

increase the to an So in to that opportunities there's in if up CCAA. you've be There any know just appear attractive come market. more want seen

the to sector. Canadian then see you might that different So parts somewhat and have the might from see supply of standpoint, are those for available more shakeout your chain maybe M&A you you a opportunities in in come guys starting

in sector, the Canadian So absolutely.

standpoint, it, gross more our I into cash you benefit Leamington, but before, accretive is our and what very and to Ontario. affected earnings. in think X facilities us And from a absolutely bringing we facilities accretive margins say to have us it our heard to much there's major grow more an absorption

some -- price as it marketplace, compression. of competitors there the come also It out and out there's competitors the also helps with of less

and got be its and It's to Tilray accretive shareholders. make grow to to got So it's absolutely, fit got sense. our it's within facilities to Tilray

interested. the happen and growth at $XX a only It's a U.S. billion legalization there. a out big market when is market it the Canadian does very projected prepares still we're So the market for lot It's retail. Listen, in

we step see much and how growth just today, businesses. beer happening you U.S. business Canada, We in our legalization asked margins see opportunities. the And back, to great near you We and like with future, as in see is the those about headlines great only anywhere rate in very in me don't spirits

in excellent management team, to We love running those Bryan have And or with Nolt and an businesses. we'd Breckenridge Montauk some more Ty both some SweetWater. and more Gilmore with find now

focus standpoint, on legalization, with And a name And adult-use will an We're the there wellness that acquisition been will on there. whole Tilray now we upon Brands. and infused in wellness diversified area an cannabis, of of we're with be also Manitoba that look Harvest. foods wellness is company think is and spirits very THC. a have successful as area on will be foods And at to We've company with hemp. And we, business. focused the be beer, that medical with why a that. going from be acquisitions focusing infused team, experience There'll products. that's the We're lot cannabis, that,

want focus there. out said to and we major don't this as diversify to in company, always to because when a legalization the U.S. is on acquisitions there's we've we So know happen going grow additional this business

the next line with Bennett of Jefferies. is from Our Owen question

agreements able out back reaching demand had to partnerships what and and been comments would Have these manufacturing more need here you're wanted maybe happen initial you interest? I I LPs around your believe, with due some heard Canada. exactly? do perhaps correctly, look currently to again? to other to if would this. come And capacity you own details around facilities when in your Could just product like I this And you've in exploring what any spec you then obviously, said, increases that you give your

that. something. me answer But to because you that he's tell the there going So let one let out I'm doing Blair

our We ability over grow facilities have in the XXX,XXX to kilos.

have Vancouver, Coast have we West that facilities acquisition. Tilray down the We the in other in since facilities taken and we've

tell run have I'm the we at up now, And tremendously. something, lease not worried our you that -- filling XXX,XXX let financial kilos ability change to the and me we that, to So with right grow. capacity will

where of today. some food in of where opportunities and thing is how there. vegetables at we're in There's lettuce, shortages start the look of fruits we we facilities do and other overcapacity, facilities there's The there's growing these strawberries. world at some shortages price and looking utilization we're do the to have these major if facilities tomatoes, food we -- supply And potentially world of

address cash, We're do cash, regards you utilization thing that assets. and is want the to So generating Tilray in I one stuff the make company. of in we're growing some on Canada? giving want Brands sure that Blair, we're to to working you're we're

right flower Thanks, beverage for Irwin, Owen, the got amount the thanks, capacity side capability. low-cost and a We've production the on it got Very Irwin on at of hit fair, tremendous opportunity. Yes. nose. We've question. a

vape vape, BHO, have resin. just distillate not capability, We live

tremendous facility. We a just have

today, we world-class The that very competitors team of a And cost. the operate job can facilities are done at a in sustainability. industry unbelievable building know not lot low an on our has focused survivability and of

our think, it's excess billion thrives an billion So some help globally. get that and opportunity, Canada for I $XXX $XX to our to industry industry capacity us, and and utilize of in

a moving few There's Fruitful. lot forward. near we're terms future LPs In of of in with those I right conversations, the talking think yes, We've a they're as partner very And productive. to that the up today we'll got opportunities now. interest. different of

of the The Zamparo John from with is next question line CIBC.

you a Or on cost the I have level get measures It's if some sales assume the guidance EBITDA a of implies step-up revenue? the guide you even which your pretty in but significant It's meaningful EBITDA wonder, for Montauk question. does some you to can and the current outlined guidance, account simple with growth? relatively underway, you pretty of

remember start, had. onetime sales you we that the we from the if talked John, So about adjustment

] in answer the the we that cost statements using yes, than the $X have the as for coming with guidance. that question reiterating will So which at Europe, cost year. be more as the our more your We looking achieved we're with savings a end XXX But of see financial quarter. our of the this is, half in with basis we're [ that million Montauk of that obviously, was to the by than base addition reduction the

it. yes. absolutely a part sales and is growth John, growth at of But sales looking We're

is Michael with Piper the from Lavery Sandler. Next question of line

any the opportunity. a things capacity bit you how comment come some there. I earlier and are of multiples you Brands to had mentioned about those about reiterated want not you and and branded see a little to think any that and really produce, And of of also But vegetables to like you the fruits with you an name back there's least made just as really just have opportunities and margins kind Tilray don't companies not at about who interesting. company's think how

guess, also So maybe more you costs as How capacity? would farmer a just you instead some I consideration be of for the rationalize touched on trying EBITDA. do just think about And fixed of a weighing you to trade-offs? those

there's I into multiple think it. going So

a on plan working how we're think and I then on our rationalizing cetera. do is our brands on we et versus focus X facilities here, and there businesses

today today, as is we for facilities utilization of I come us. So back important think

make thing you we're branded into And on away that out look we've second. facilities, something range, one want lot hopefully don't not of their to and if there $XX our take to there amortization But vegetable at it in going is grow our sure the out the million invested a okay? world-class quarter, that have dollars just got So facilities. into to is for we facilities a we make business I million, facilities this getting utilization, utilizing cannabis. sure $XX in our and it's We're

looking at opportunities, we're And again, don't want these are as multiple sit But idle. we them to sitting world-class. facilities here

other in growing saying, do us, we're going first of and cannabis We're and to products priorities. us spirits, with that foremost our we're and growing what first not what's there's for foremost at or looking branded that's diversified facilities, to lots become whether these things it's I'm and businesses, cannabis for but there is So being is farmers. saying wellness beer out is

temporary it you maybe thought or mean, under can maybe you to it Is a I bridge? about guess that circumstances I the how an as -- So opportunity. just of you right I clarify think Is just as kind pointed that?

just make facilities facilities focused contributing and idle contributes driving driving company, as or there line, are our ultimately important cash. utilizing as bridge doesn't the we, our contribute circumstances on our That's utilized. cost. temporary Sitting what's And top a right anything, growth a contribute And are our the being Under to sure they're cash. to thing here.

is question Next Cantor the Fitzgerald. with of Pablo from Zuanic line

X questions. Look,

the could reason branded, North remind talked the it, business, of American you and cannabis, different suppose you are U.S., that just target wellness. had about, beer asking to decide you're Does one $X be about, where about the up billion being pieces thinking fiscal there But the that talking first CPG revenue I'm a by in The legalization there I us you mix holding they that's all high-margin change? scenario you're Canadian, given delays and 'XX. international suppose right? were delayed. question, the I bulk alcohol year how without And to

start to and not but know 'XX have doesn't cores, assets I'm 'XX, approve in a structure, Brands doesn't hypothetical. and we the about scenario the a listed would just our U.S.A. want you of we disadvantage buy had an that cannabis you the potentially [indiscernible] it's put and they And alcohol XX% go If we in second them if for at following revenues? saying motion they account what question, you side, cannabis -- that right? TSX, I the -- allow buying Tilray U.S. could that would on potentially, And NASDAQ consider would remain delist

move delist you not U.S. to not? to they just a do TSX remain start and they get you NASDAQ, assets disadvantage be consider a U.S. So if if were that, assets, are they were to are -- buying when from buying in would similar

before make there. on here. business it's that mark I a and set would Good you. believe in and been it was one, thank so Pablo, part very whether have far. companies, out questions the legalization believe U.S., good Europe, profitable, Listen, billion of I legalization. margins, $X always legalization the been a and have has other It's contingent Number Constellation said happened sure good business that Diageo the spirits would that I've I very us for or out

been out companies. companies legalization, an on distributors alcohol major upon whole come there alcohol realize and margins. one cannibalization these on is cannabis. and business me, spirits one day because cannabis their I no like And focused like the I other in tobacco going with different all I've day, the everybody think they cannabis, -- eye meeting their as the is to from trust multiples, have than I And

if like So the these do that, with I a get have why to not in like into a the Montauk, today bigger some there, SweetWater, a sit like area. anything of and know did. like brewers U.S. And I wellness what, craft like Breckenridge can't you we

wellness in the past You area. know my

with adjacencies. So portfolio our that, diversify with

buy assets. U.S. in the how cannabis now, grow We New in happened they've just So valuations, And right down. to York in we regards recently can't assets cannabis what's look can't come

lines the in lines hand, store other you that around it. demand and and the opened On with the for the lines corner, Manhattan see

on the You there. you walk down streets corner of Manhattan, cannabis smell every

look So to with going to grow. we're absolutely, that,

going company we with we with brewer that out with we're have we're we today, Flash, press Harvest. Coors, SweetWater, that multiple with cannabis buying Green diversify have and looking want like to And we like categories release we there like did spirits be at Molson out I'm businesses this our multiple headlines Montauk, and like other the there craft very brands to did business. large that clear of have into have in not owns we no, like with our And but Manitoba adjacency to Breckenridge

that. correct absolutely on you're So

second? question? Your Your second

to want question? second repeat you Do the

I going the is on no, just NASDAQ no. second being your own TSX good was exchange not an be NASDAQ -- important be Right allows -- to shareholders [indiscernible] and we no, assets. now, would us volume, it, No, does I to that got moving answer having them. right the interest us, us that now, have. no, the or I exiting trading having for the question. luck it of to to to if to U.S. the And Listen,

is in consumer where have Europe now, grow our and you'll come THC going with beer come to right spirits one in grow opportunities the see you Canada day, see strong, day, business THC businesses. from cannibalization in opportunities anything, in because the is goods and will our the packaged cannabis the will And from, we where strong diversify it where U.S. spirits strong to one with But if business, focus have we our U.S.,

away from now. not is focus our move to the So NASDAQ

from is of question with Canaccord. the line Next Bottomley Matt

things, to back pivot particularly of to wanted M&A in the the Just side U.S.

know there think other you just this THC were you nothing that space flow deal guys position of you adjacent So some that yourself or to lack at at to make specific to the the level, of allocate the changes been had sort cash given considerations some strategy your you that that, optionality. of thereof acquiring clearly, businesses But very self-sustaining. But sense. done for deals of have the had view with capital how MedMen, financial done some or a December? that in may on I given do frustration guys when in the look happening have of how headlines to are federal

you more some XXXX. respect anticipating that's Congress, comment on his this just which you could legalization think split? your also in something actually now what Or with is Biden initiatives? do then happen said event And Joe a in of think of had likely to Irwin, Do from new

pieces and there lot the been cleanup speaker not it's the by to things before, buy is about come happening. the I There's back, of excited his this focuses, a has Listen, what happening we and going cannabis wish how are options going and was U.S. one but with said I've absolutely not. of good we're And of I companies. ultimately house of MedMen.

upon In whatever, out I'm frustrated we'd stakes nothing of all Tilray, legalization, there. different as it's descheduling, Banking, Act, it's legalization, in part very upon whether cannabis legalization nothing, within asset And SAFE that and be has legalization. whether whether interested regards almost or happened it's to the having MORE listen, that

business, our we it's focus on for where that to got with legal. Canada, So

third a cannabis a and focus Europe on that out recreational focus of on Europe, medical legalization, to market which we're business integrating our distribution our now change really Pharma in buying upon medical from there's doing they're today on focus some standpoint. but got but it the using and strategy CC business, from whole market as We've where but there

great a in seen successful We've asset niche been business. wellness SweetWater. us buy these great beer businesses. to been with was with We've turnaround successful Montauk And The Breckenridge. a for we've our

in make the depending of sitting Senate to the the affect for to waiting if So 'XX, that it's -- decisions, shareholders business we're not of focus results U.S., want the or Congress by our we're be effects the to here affected the right and now, Washington. going buying acquisitions business. ultimately our 'XX politicians 'XX, on is cannabis the in for And and and and of going results business our to I results because our adjacencies don't

the is Our Capital. Frederico next Gomes with of ATB line from question

compression. price And on Canada, in taxes as we you XXXX, Just unsustainable with so in obviously, almost to mentioned, environment the it and price has excise continued see been on.

that be what price you happening? in driver So believe my question of do there the sort in chance there? And XXXX? pressure persist in of is, any Or do will could shift in significant you of Is Canada pricing? any expect that terms XXXX

So to price Blair, compression answer what it over else. partially, see everywhere talk also can and to we it then about I'm turn and we going I'll in

I quarter-over-quarter, think the that's seen price very But only there. inflation we've okay? there probably is out out and again, cannabis to product where hit, hasn't -- little going compression

will building products of from and different do with brands got to At coming be going going Year-over-year, go and got that's And same matter. you're be leader out and do the you're out anything producer, as the being to innovation matter, see pricing. us where $XX that marketplace that get you're low-cost price to But see other to different right that's that? to and million have to in too. we've LPs you types standpoint. time, that And there. away, able be want seen add the the our going ultimately focus product, the to almost ultimately innovating potencies to Blair, brands

Yes.

in see earlier. a is next you little What it to bit is category say overall, rate to mix, changes over see a just of pricing may months. would going be which in unlikely the XX I So my pre-roll, a on across improve I brand to just can volume referenced And to it the from standpoint finally, then side. answer or shift pricing point, the provinces. mix Irwin's

about industry average opportunity we when look LPs a we you thinking as consolidation, down industry approaching sustainable at where innovation, see I've subsegments been to really segments higher-quality it think as go see to it rate real where the offering, normalize normalized, terms in if consumer XX I drive we're you'll say RIFF able is that with think of But push we over up, we and grow. a or time. levels for those see build revenue the inventory how start then the category of into see your which months of have saying number we're some changing? And being I would those to to start will year-over-year. economics we're category. entering take do example I from within -- a will into great a but

in think back And only Frederico, step a a U.S. same let's second. is, okay? the I the the And listen, Cannabis X-year-old is thing for business, Canada important with

for industry, a it. electric cars. brands different new at, we're to take to take no long time and same long used a to out brands build the than tech, time different brands no time, we're get consumers building So out At than whole building a

And think $XX get billion. consumer. does out how business Canadian out same out it's just time Today, and -- trying $X the that The what's there. out get ultimately right bottle. There's price cannabis right at there's at the to there and At it to $XX bourbon $XX I $XXX prices billion the billion, to settling think there prices a between I the retails bourbon bottle. a

opportunities ultimately biggest you walk store convenience where talked buy have a THC, you category, can any THC products. the walk we a of about not can that into with drink One and is buy whole beverage store a and into

buy and into go bar on tap. can THC a beer You

And industry. today. So of it's evolving that's important be going to an it I the piece think

out there's dollars. billions that gram, And the The that billions tax building these be $X things on is. to it's and to to were Tilray. The matter some and happen, is XXX over billions infrastructure winner, there. out spent what of will a a facilities no excise going shakeout and LPs The with, we be was deal the grow but have of going there's price

at no There any are this additional questions time.

questions And Technologies from will the Say take we Thank now platform. you.

question is, to to first positives in forward what XXXX? The are look some

I think. Listen,

questions throughout of out there. As I've a these today, there's said positives all lot

the behind into is edibles today, We're lot of we has in countries sold grow have a with in company #X #X adult-use business, the drinks there. today, the great business it's business, we a the with Tilray As Canada, innovation a of a business, lot diversified in XX and in as out over medical facilities Europe it. move medical cannabis business

We will and business have focus continuously into these could a European strong which a integrate CC Pharma businesses, so on have business, we that.

out business As regards a diversified have Harvest. business, a company, our to and spirits balance into in beer we've gone wellness into the have and built Manitoba business We've the gone sheet.

today, place an There's cash easy that over there that's out management it's must we and industry $XXX-plus have you, execute. not how in have it's strong, easy, but a have industries no industry. knows to team brands. tell million we an We of where strong today And I

We have management a team. strong

strategy. have We a

wanted by not XXXX. And to the a categories, diversify business end tomorrow, out going it But we that's achievable industry. absolutely yes, happen. I've be if to And possible. legalization strategy legalization, $X there to said I billion unfortunately, has happened it's can be change. just of Without other the into If with cannabis

and So in there's moving a things good lot upon there's there 'XX. of at And to pieces us 'XX a lot out Tilray. of execute for happening

what And stock question economic value this to the increase the are is, plans environment? final in the

here And and legalization. that, on lot of We upon is a over out here, have and make say than markets of politicians to why the wait whole down a I were different cannabis XX-plus a in proud like I'm there to percent. at The just sit expectations this do would been The stock diversify tough industry come think not and Tilray. better markets back I for have decisions place. to XXXX. we I see and the that's things that Listen, got legalization. our at lot of there happened to

to pounce does this the it's legalization spirits, it's ready it one opportunities into for R&D, thing in and we'll in company grow, whether I happen, it, tell legalization. we'll brandy, is those it's But when industry, in every whether food in whether cannabis, in well cannabis with be other whether And can one or upon products. ready upon whether be quality, it's of whether beer, it's it's you whether we're it's

Thank you. And that our question. concludes

you've as -- as execute excellent have to Thank a you, place help on talked in going in in lot everybody. going upon on. on talked there's Canada, lot lot I've about, see, And as can an a Europe. this. going we you A And team

You you our Simon, Ty; Bryan from who business. heard business; who Nolt, from heard Blair, you heard Denise, Jared from our Beverage runs wellness runs

excellent area, We our teams have our legal operational financial our areas. in IT our area, area,

And in here what's today. works me Tilray that's of incredible place So at alongside an there's team that key.

a in we top We to our We Ultimately, upon growth. and focus out. because balance We We We line on strategy do it's shifting focus as we then to focus on sheet. shift have how on on expect focus that. take that, sit cost shifting place. cash. we're and how legalization

do and in how There's our and that ultimately way a lot of we hurdles what can get them we do. overcome

Canada food. we said, There's that different XX no can limitations limitations go Canada. can European in we that There's can't products. products -- no Solei can Target, to sell our sell But Loblaws in or we wellness our in we a beer products And Walmart, in sell Bites there's our the the We There's Pharma our the spirits into products and to or scripts. we our limitations sell XX,XXX doctors drug with can and CC sell have where U.S. customers. go that business, stores. limitation where products in our that

be to to a products. we the world sell So oyster want

at January Shareholders to sell because products from the to brands. cash continue that. We do We're we that Tilray not that. want mention Brands participation I'd before multiple XX want adjourn and continue We and flow stockholders. had has Tilray at contribute But yet to consumer to opportunities, our sufficient to to that conclude, multiple to sell of do to we'll its acquisitions contribute I do want business. like that have Meeting Annual to brands. We We're we'll Brands free looking looking margins sell

amendment They're stockholders have common equal today. Tilray like or as stock voting charter to per The share. ensure intended outstanding shares shares. have of to Class Tilray's there. stockholders is rights of all will XXXX, and vote simplify not outstanding that be record I'd the Brands stockholders not of XX, dilutive voted to increase or vote X September urge X number elimination of all yet to The of structure capital already

of a is So key it is ensure and that help for corporate company protect key is best This initiative that and to not influence us dilutive. practices the governance, stockholders. our

no matter how really, is support few you many own. really Your important or how shares

voting great you you contact I future. Happy have forward to speaking today. you your help for with that, look near need very in And day thank joining Year. you Have support Thank the us want and our If with everybody I investors@tilray.com. for a much a New and any to questions, to or please

This will conclude today's conference.

for participation. lines You may at this time. Thank your you disconnect your