Tilray Brands Inc. Reports Third Quarter Fiscal Year 2022 Financial Results

The profit quarter includes net income of $ 52.5 million and adjusted EBITDA of $ 10.1 million. 12th consecutive quarter of positive adjusted EBITDA Net income rose 23% to $ 152 million. Gross profit rose 31% to $ 39.8 million from the previous quarter Leading medical market share in Europe and # 1 leading position in Germany with revenue growth over 4,000% Maintain the # 1 Top Marketing Share in Canada To date, $ 76 million worth of synergies have been achieved. A good way to go beyond the $ 80 million original plan ahead of schedule and to create additional $ 20 million synergies in fiscal 2023

LEAMINGTON, Ontario and New York, April 06, 2022 (GLOBE NEWSWIRE) – Tilray Brands, Inc. (“Tilray” or “The Company”) (Nasdaq: TLRY; TSX: TLRY), a world-leading cannabis and consumer of cannabis packaged goods company that inspires and enables the global community to live its best life, announced today the financial results for the third financial quarter ended 28 February 2022. All financial information in this press release is in US dollars, unless otherwise stated. Irwin D. Simon, President and CEO of Tilray, said: “Our third quarter results reflect progress and momentum in all of our key business areas and geographies, setting the stage for our revenue target 4 by the end of fiscal 2024. Tilray Medical – now part of a coherent strategy and mission – has a nearly 20% stake in Germany, providing clear benefits on its own as well as a first-hand advantage Germany and the EU are moving towards wider legalization for adults and medical use. In Canada, we have maintained our market share leadership amid fierce competition – and we believe that our strong capital position, operational excellence and price adjustments and marketing will work together to ensure that we regain our share in the coming quarters. This effort will gain further support from the fundamental attractiveness of our brands and the innovation of our products, which, as stores continue to reopen, will have a strong impact on consumers. In the US, our companies SweetWater Brewing, Breckenridge Distillery and Manitoba Harvest are profitable, growing and emerging nationally, iconic brands with loyal followers that will host THC-based products after US federal legalization. Mr. Simon continued, “We have also continued to supply and execute strategic and shareholder-friendly transactions that provide value with a remarkable upward trend. Our most recent example is the proposed agreement to purchase HEXO high-security convertible banknotes, which provides a path to substantial future equity ownership of HEXO as it executes during its conversion. The proposed HEXO transaction is also expected to facilitate complementary commercial and product innovation and increase productive and operational efficiency. “As the global economy reopens, we are confident that the global power of cannabis at the heart of the Tilray Brands value proposition will provide stable and tangible value to shareholders.” The story goes on Financial Highlights – Third Quarter Financial 2022

Net income rose 23% to $ 152 million in the third quarter from $ 124 million in the previous quarter. The increase is due to a 32% increase in cannabis revenue to $ 55 million, a 64% increase in alcohol revenues to $ 20 million and a $ 15 million wellness revenue. Gross profit rose 31% to $ 40 million from $ 30 million in the previous quarter. The gross margin increased to 26% from 25% in the previous quarter. Significant increase in international cannabis with revenue over 4,000% from the previous year quarter and 37% increase in revenue at EMEA compared to the previous quarter Maintain the # 1 lead in Canada1 with a 10.2% cannabis market share thanks to Tilray’s comprehensive adult brand portfolio and pre-roll and vapor product development. Cost synergies from the $ 76 million Aphria-Tilray combination have been achieved based on the current rate to date. The $ 80 million synergy target is expected to be met by May 31, 2022, five months ahead of schedule, and to generate an additional $ 20 million in synergies in fiscal 2023. Distribution revenue fell 11% to $ 63 million in the third quarter from $ 70 million in the previous quarter. The decline is due to the impact of changes in the exchange rate between the euro and the US dollar, which led to a decrease of 7 million dollars.

1 Based on Hifyre retail data. Strategic Development Actions

April 6, 2022 – Manitoba Harvest announces an exclusive partnership with Whole Foods Market, launching the brand’s Hemp + Matcha and Supergreens powders exclusively at Whole Foods throughout North America. April 5, 2022 – The Brewers Association announces that SweetWater Brewing Co. is now the 10th largest craft brewery in the US April 5, 2022 – Tilray Brands announces the release of Solei Bites, the first edible THC available in Quebec, Canada’s 2nd largest market. March 24, 2022 – Solei, the best-selling Canadian wellness brand of Tilray Brands, announces the release of Renew Moonlight, a CBN night vaporizer. March 17, 2022 – Tilray Medical launches the first medical cannabis oil products in Malta. March 8, 2022 – Good Supply, Tilray Brands’s best-selling Canadian cannabis brand, announces the release of Hash Bats, its new fastest growing pre-rolls. March 3, 2022 – Tilray Brands announces a proposed strategic alliance with Hexo Corp. to bring together Canada’s top two cannabis market share leaders to boost operational efficiency and product innovation for the benefit of consumers, shareholders and the cannabis industry. March 2, 2022 – Manitoba Harvest announces its new superfood product line. February 22, 2022 – SweetWater Brewing Company launches in Oregon and Washington, marking the brand’s expansion into their 39th and 40th states. February 17, 2022 – Tilray Medical announces its first shipment of medical cannabis products to Malta. February 10, 2022 – Breckenridge Distillery launches the second (sold-out) series of “Super” Sexy Motor Oil, a limited edition Bourbon that ages in beer barrels for over a year. February 9, 2022 – SweetWater Brewing Company announces expansion to the West Coast of California and a partnership with the largest beer distributor in the USA February 8, 2022 – Tilray Brands launches Tilray Medical, a new integrated global division focusing on international medical cannabis advocacy and a portfolio of EU GMP-certified medical brands and products. January 25, 2022 – Tilray Brands announces an expanded offer of medical cannabis products in Australia and the launch of a new online medical cannabis training platform for healthcare professionals in Australia and New Zealand. January 20, 2022 – Manitoba Harvest introduced new cannabis recipes compatible with Vegan, Keto, Paleo and gluten-free diets. January 10, 2022 – Tilray announces a new parent company, Tilray Brands, Inc., reflecting the Company’s evolution from a Canadian LP to a global consumer packaging company with a market-leading portfolio of cannabis and CPG brands. December 21, 2021 – SweetWater Brewing Company acquires award-winning brands craft-beer, Alpine Beer and Green Flash Brewing. On December 8, 2021, Tilray acquired Breckenridge Distillery, strengthening its strategic position in the United States. On December 2, 2021, Manitoba Harvest unveiled the Hemp Hearts health hacks for the holidays.

Growth and high potential in key markets

EU-wide strategic expansion – The success of Tilray Brands across the EU, a strong growing market worth potentially $ 1 billion for the Company, is supported by two state-of-the-art farming facilities in Portugal and Germany that provide EU GMP certified pharmaceutical grade medical cannabis throughout the area. This unparalleled production capacity combined with Tilray Brands sales agreements through major distribution channels in Germany, the UK and other key markets, combined with strong relationships with local governments and our patient trust, gives Tilray Brands the ability to accelerate growth.

A leading US CPG platform with operational power, leadership know-how and optionality that will be used immediately for cannabis products after federal legalization – In the US, the operation of the Tilray trademarks …