Tilray Brands, Inc.

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Thank you, operator, and good morning, everyone. By now, you should have access to the earnings press release, which is available on the investor section of the Tilray Brands website at tilray.com and has been filed with SEC and the CSA. Please note that during today's call, we will be referring to various non-GAAP financial measures that can provide useful information for investors. However, the presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. The earnings press release contains a reconciliation of each non-GAAP financial measure to the most comparable measure prepared in accordance with GAAP. In addition, we will be making numerous forward-looking statements during our remarks and in response to your questions. These statements are based on our current expectations and beliefs and involve known and unknown risks and uncertainties which may provide to the incorrect. Actual results could differ materially from those described in those forward-looking statements. The text in our earnings press release includes many of the risks and uncertainties associated with such forward-looking statements. Today, we will be hearing from key members of our senior leadership team, beginning with Erwin Simon, Chairman and Chief Executive Officer, who will provide opening remarks and commentary, followed by Carl Martin, Chief Financial Officer, who will review our first quarter financial results for the fiscal year 2025. Also joining us for the question and answer segment are Denise Faltacek, Chief Strategy Officer and Head of International, Blair McNeil, President of Tilray Canada, and Ty Gilmore, President of Tilray Beverages North America. And now I'd like to turn the call over to Tilray Brands Chairman and CEO, Erwin Simon.

Thank you, Barron, and good morning, everyone. And thank you for joining us today. In the last five years, Tilray Brands has evolved into a new company. We no longer are just a Canadian cannabis LP. Tilray Brands has grown tremendously, and we're setting a new precedent for the CPG industry. Not only have we set the stage for a new era of consumer habits, Tilray Brands has pushed forward, disrupting the global CPG industry and revolutionizing consumer products. Tilray is at the forefront of innovation, pioneering and leading the convergence of of beverages, cannabis, hemp, wellness, and distribution industries on a global scale. Our operations span over 20 countries and 5 continents with 44 consumer-connected lifestyle brands and 20 vertically integrated facilities that produce approximately 90% of our products in-house ensuring the highest quality of our products. Tilray continues to lead with the number one cannabis business in Canada, leading medical cannabis business across Europe, the number one branded hemp business in North America, and the fifth largest craft beer business in the U.S., Our success in building a new era of consumer products that resonates with today's discerning consumers and caters to their ever-evolving consumption habits and transforming the way consumers eat, drink, and unwind with cannabis, hemp, and beverage products is a testament to our commitment on delivering innovative products that meet the needs of the modern consumer and drive growth across industries. Moving on to Q1, we achieved our record first quarter net revenue results while strengthening our operations, increasing gross margin, and increasing our gross profit. We hit net revenue of $200 million, representing a 13% growth year-over-year. Our gross profit increased by 35%, and gross margin increased by over 500 basis points compared to the prior year quarter. Our beverage business, including craft beer, spirits, and our new non-out beers and other non-alcoholic drinks grew 132% in net revenue year-over-year. We strengthened our leadership position as the fifth largest U.S. craft beer brewer with a 5% market share as a result of our craft acquisition from ABI. We recently launched a new beverage division called Tilray Alternative Beverages, focused on fueling key markets across the U.S. with innovative federally legal Hemp to River Delta 9 THC branded and branded products. This is an exciting new segment for us and our network of distributors, which I'll get into in more detail shortly. We focused our cannabis business on strengthening our operations and increasing our margins, leading to a gross profit increasing by 22%. We continue to lead the branded hemp food industry with a 52% branded market share, with Manitoba Harvest in the U.S. and the Canadian market share of nearly 80%. And our financial foundation remains strong with a robust balance sheet, ample cash reserves, reduced debt levels, and flexibility to explore potential new acquisitions. Our financial strength enables us to pursue new opportunities and capitalize on emerging trends in the market. Let's now dive deeper into each of our business segments, starting with Tilray Beverages. Today, our beverage division leads with 19 iconic brands, 10 network manufacturing facilities, and over 700 distributors, 20 brew pubs and restaurants, and leading sales and marketing teams across the U.S. Our beverage strategy is focused on growing our portfolio brands in selected states, regional markets, and ensuring product excellence and innovation, driving focus scale, expanding targeted distribution to increase our market presentation and consumer access. In our beverage segment, we generated $56 million of net revenue in Q1. Across our growing craft brands, Sweetwater is the number one volume brand family in Georgia, multi-outlet, and convenience stores. Montauk is the number one branded family in New York Metro, having increased at a rate of sale of 240 basis points year over year. Tilray is the number one craft supplier in the Pacific Northwest, thanks in part to the continued success of Ten Barrels Pub Beer. Shock Top remains a leading priority as we relaunch the brand's number one seasonal offering, Shock Top Pretzel. During Q1 and Q2, we drive an additional 5,000 distribution points in the last 45 days. The Pacific Northwest grew overall shock drop distribution by 42% during the Q1, adding 1,100 new placements for the brand. In the Northeast, Montauk's flagship WaveChaser IPA continues to post positive year-over-year volume distribution gains, adding a net of 139 off-premise accounts during Q1. Three of Sweetwater's top 12-pack SKUs, 420 Pale Ale, OG IPA, and the Hazy IPA, all posted positive trends for Q1, trending a plus 7, a plus 24%, and a plus 17% respectively. As we mentioned before, our ambition is far beyond our current reach. As we continue our focus to become a dominant leading beverage business by leveraging and strengthening our portfolio of beloved local craft brands, recruiting new customers, and activating more occasions, driving new growth across these brands. Additionally, we are innovating across adjacent categories, including flavored malt beverages, ready-to-drink cocktails, beers, and also beyond alcohol. We will grow our non-alcoholic beer category and expand further into water, energy, and other categories. Our powerful college sports partnerships across the country will be leveraged to bring new LDA consumers and fans into different brand families, especially Shock Top. Separately, our MLS music events and local community partnerships allow our brands to recruit and retain our core customers across different age groups. We have the manufacturing facilities, the distribution, the sales and marketing infrastructure to drive tremendous growth in the Tilray beverage business. In the non-alcoholic segment, Montauk non-alcoholic craft beer is now sold in 650 counts, and new brand, Runner's High Brewing Company, has launched in the southeast with three brews, Runner's High Golden Wheat, Raspberry Wheat, and Dark Chocolate, with several expansion markets to follow. With over 700 beer distributors, Tilray is now a leading supplier in key regions across the U.S., with regional jewels in the Northeast, Pacific Northwest, Colorado, Texas, Michigan, and the Southeast. With each beverage acquisition we've made over the past few years, Sweetwater, Green Flash, Alpine, Montauk Brewing, the craft acquisitions from ABI, and most recently, the acquisitions of our four brands from Molson Coors, we are laser-focused on operational efficiency, optimizing cost structure, and getting the margins of acquired brands up above 40%, like Sweetwater and our other legacy businesses. We've identified additional growth opportunities in our beverage business. Tilray Beverage is going after category diversification, and we've identified four categories we expect to generate $30 million in revenue by the end of fiscal 2025. These four categories include light lagers, $117 million category, flavored malt beverages, a $4.7 billion category, sparkling water, a $12 billion category, and the non-ALF grew a $445 million category. With our recent launch of Tilray alternative beverages, we are focused on fueling the U.S. with hemp-derived Delta-9 beverages, which is an estimated $2.8 billion market in the U.S., We're beginning to launch our hemp derivative Delta 9 THC brands and products in key states, including Florida, Texas, Louisiana, Minnesota, North Carolina, South Carolina, Ohio, Georgia, Alabama, Oklahoma, and Tennessee, with distribution driven by our existing and robust beer distribution network. Our initial portfolio of HDD9 brands include Happy Flower, Herb & Bloom, 420 Hops, Busy Jane, and we expect to launch additional brands by the end of this calendar year. Happy Flower is currently available online through Drink Happy Flower. The growth of hemp-derived Delta 9 THC drink business in the U.S. is remarkable, and we are excited to see its potential for our beer distribution network. who are eager to jump into the business and have already begun placing orders. We look forward to sharing more updates on this development soon. Turning to Tilray Cannabis. In Canada, Tilray's continues to lead the Canadian market share by almost 170 bps over the next competitor and have been consistently at the top of the industry for the past three years. From a regional perspective, Tilray is number one across British Columbia, Alberta, Ontario, and Quebec. These provinces combined include over 86% of the Canadian population. We've also led in all other markets combined. In adult use recreational cannabis, we focus on margin improvement across our portfolio brands and products resulting in improved adjusted gross margin by 500 basis points in Q1 versus last year. The margin improvement partnered with efficient utilization, production, and further cost savings initiatives will allow us to grow our revenue, profitability, sustainability well into the future. In Q1, 20% of our net sales revenue came from new innovation. Our mainstream flower business continued to grow because of our strong genetics. Our Redican brand moved up to the number six position brand in Canada, as reported by high-fire data. In beverages, Tilray continues to dominate the beverage category with a 45% market share, and at the end of August with XMG, Molo, THC beverage brands being the number one and number two brands, respectively. Tilray shipped 78 metric tons of biomass or approximately 25% of the implied Canadian market volume in Q1. We continue to leverage the wholesale channel where contribution margins are better and supply is starting to balance. On an adult rack, we shipped 16 million pre-rolled cones and over 2.1 million cans of beverages in Q1. Turning to our international business in Q1, we continue to execute against our three basic initiatives. First, the acceleration of growth in Germany. In Germany, since the Cannabis Act went into effect on April 1, 2024, we've seen a 50% increase in medical flower sales, as well as a 22% increase in medical cannabis extracts, where we already have a dominant share of the market. And we believe that our current positioning in Germany provides us with several unique competitive advantages to capture a significant share of the expected medical cannabis market, which is projected to be approximately $3 billion in the median term. We expect to continue our growth in this very important market through commercial excellence and increased supply. We will continue to leverage the expertise and relationship of our CC Pharma, Tilray Pharma Distribution business in Germany, which supports our medical cannabis business through its network of 13,000 pharmacy and wholesalers. Second, the bifurcation and differentiation of physician-led and patient-led channels As a market leader in the physician-led channel, we're turning our focus to accelerating our growth in the patient-led channel. One of our major initiatives in this regard is improving the availability and the quality of our medical cannabis supply to meet needs of patients-led channels by creating a flexible and diversified supply chain focused on high-quality flower and new innovation. At a free Rx, our German cultivation and processing facility we received the very first commercial cannabis cultivation license and commercial distribution license issued in Germany under the new regulations. These new licenses granted Tilray the ability to cultivate, produce, and distribute premium quality medical cannabis with the ability to increase our production by approximately five times. Apria RX can now fully utilize and maximize its growing capacity while also expanding its genetics to a total of 31 approved strains from the previously approved three strains. We've already completed our first harvest under new cultivation license. We expect to commercialize these products in Q2. We've also begun to supply our international markets with EU GMP certified medical cannabis products from our Canadian facilities. with medical cannabis from Afria Diamond launching in Poland and Broken Coast and Redican launching in Australia. We expect to launch additional cultivation from Broken Coast and Afria Diamond in the coming months. And finally, we'll continue to identify and enter new markets with the potential to generate material revenue and profit opportunities. We expect the European opportunities could represent a potential $45 billion medical market over the long term. And with our presence in Europe, it allows Tilray to grow our global brand portfolio to a base of over 700 million people in Europe, which is twice the population in the U.S. Finally, let's discuss our Tilray wellness business, focused on improving people's lives through the power of hemp. Tilray Wellness is represented mainly by Manitoba Harvest, our leading hemp brand, with over a 53% market share in branded hemp products. Wellness is also comprised of happy flower beverages and highball energy drinks. In Q1, Tilray Wellness delivered 11% net revenue growth compared to the prior year, driven by strong core business sales, coupled with hemp innovation and expansion into wellness beverages. A strong focus on cost helped the business improve margins, delivering a 300 basis point increase in gross margin to 32%. As Tilray Brands has transformed, expanded, and completed numerous acquisitions to get where we are today, our mission has evolved to be a leading premium lifestyle company with a house of brands and innovation of products that inspire joy, wellness, and create memorable experience. With that, I'll now turn the call to Carl to discuss our financial results in greater detail.