Tilray Brands Inc (TLRY) 2024 Q1 法說會逐字稿

Thank you for joining today's conference call to discuss Tilray Brands, Inc. Financial Results for the 2024 Fiscal First Quarter ended August 31, 2023.

感謝您參加今天的電話會議，討論 Tilray Brands, Inc. 截至 2023 年 8 月 31 日的 2024 年第一財季財務業績。

(Operator Instructions) I will now turn the call over to Ms. Berrin Noorata, Tilray Brands' Chief Corporate Affairs and Communications Officer.

（操作員指示）我現在將電話轉給 Tilray Brands 首席企業事務和傳播官 Berrin Noorata 女士。

Thank you. You may now begin.

謝謝。你現在可以開始了。

Good morning, everyone. By now, you should have access to our earnings press release, which is available on the Investor section of the Tilray Brands website at tilray.com and has been filed with the SEC and SEDAR.

大家早安。到目前為止，您應該可以訪問我們的收益新聞稿，該新聞稿可在 Tilray Brands 網站 tilray.com 的投資者部分獲取，並已向 SEC 和 SEDAR 備案。

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.

請注意，在今天的電話會議中，我們將提及各種非公認會計準則財務指標，這些指標可以為投資者提供有用的信息。然而，這些資訊的呈現並非旨在被孤立地考慮或作為根據 GAAP 呈現的財務資訊的替代品。收益新聞稿包含每項非公認會計原則財務指標與根據公認會計原則編製的最具可比性指標的調節表。

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 prove to be 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.

此外，我們將在發言和回答您的問題時做出大量前瞻性陳述。這些陳述是基於我們目前的期望和信念，涉及已知和未知的風險和不確定性，可能被證明是不正確的。實際結果可能與這些前瞻性陳述中所述的結果有重大差異。我們的收益新聞稿中的文字包含與此類前瞻性陳述相關的許多風險和不確定性。

Today, we will be hearing from key members of our senior leadership team, beginning with Irwin Simon, Chairman and Chief Executive Officer, who will provide opening remarks and commentary, followed by Carl Merton, Chief Financial Officer, who will review our quarterly financial results and maintain our adjusted EBITDA guidance for the 2024 fiscal year.

今天，我們將聽取我們高級領導團隊主要成員的講話，首先是董事長兼首席執行官歐文·西蒙(Irwin Simon)，他將發表開場白和評論，然後是首席財務官卡爾·默頓(Carl Merton) ，他將審查我們的季度財務表現並維持 2024 財年調整後 EBITDA 指引。

Also joining us for the question-and-answer segment are Denise Faltischek, Chief Strategy Officer and Head of International; Blair MacNeil, President, Tilray Canada; and Ty Gilmore, President of U.S. Beer Business.

首席策略長兼國際業務主管 Denise Faltischek 也加入了我們的問答環節。 Blair MacNeil，Tilray 加拿大公司總裁；以及美國啤酒業務總裁 Ty Gilmore。

And now, I'd like to turn the call over to Tilray Brands' Chairman and CEO, Irwin Simon.

現在，我想將電話轉給 Tilray Brands 董事長兼執行長歐文·西蒙 (Irwin Simon)。

Thank you, Berrin, and good morning, everyone. We appreciate you joining our quarterly call. At Tilray Brands, we strategically diversify our cannabis lifestyle and CPG company globally, and we've done so for several reasons, including the tremendous growth opportunities we see within the beverage category and across markets like craft beer, ready-to-drink cocktails, non-alcoholic beverages, energy and nutritional drinks.

謝謝你，貝林，大家早安。我們感謝您參加我們的季度電話會議。在 Tilray Brands，我們在全球範圍內策略性地實現大麻生活方式和 CPG 公司的多元化，我們這樣做有幾個原因，包括我們在飲料類別以及精釀啤酒、即飲雞尾酒、非酒精飲料、能量和營養飲料。

These product categories and others in our portfolio further allow us to address the ever-changing cannabis market conditions while driving market share in the industries in which we compete. This effort is backed by our portfolio of high-quality lifestyle brands and the strong and growing distribution networks that are behind them.

這些產品類別和我們產品組合中的其他產品進一步使我們能夠應對不斷變化的大麻市場狀況，同時提高我們競爭行業的市場份額。這項努力得到了我們高品質生活方式品牌組合及其背後強大且不斷增長的分銷網絡的支持。

Our goal in doing this is clear, to accelerate our ability to deliver industry-leading profitable growth and sustainable long-term shareholder value. To this end, our achievements in fiscal 2024 to date and expectations for the balance of the year reflects the strides we're making by focusing on our core fundamentals.

我們這樣做的目標很明確，那就是加快我們實現領先業界的獲利成長和可持續的長期股東價值的能力。為此，我們在 2024 財年迄今所取得的成就以及對今年剩餘時間的預期反映了我們透過專注於核心基本面所取得的進步。

Number one, maximizing profitable revenue growth through organic expansion, initiatives, and key strategic acquisitions with strong synergy potential; number two, realizing the benefits of optimized asset utilization and cost management to ensure a lean, efficient cost structure across all our business segments; and of course, number three, continuing to strengthen our industry-leading balance sheet and cash position.

第一，透過有機擴張、措施和具有強大協同潛力的關鍵策略收購，最大限度地提高獲利性收入成長；第二，實現最佳化資產利用和成本管理的好處，以確保我們所有業務部門的精簡、高效的成本結構；當然，第三，繼續加強我們行業領先的資產負債表和現金狀況。

Our strategic execution and achievements affirm that we have emerged as the most diversified cannabis-lifestyle and CPG company globally, with 4 distinct and complementary business segments. These consist of: cannabis broken out into medical and adult use; along with beverages, including craft beer, spirits, ready-to-drink mixed cocktails and non-alcoholic drinks and CBD beverages; wellness products; and a medical distribution business.

我們的策略執行和成就證明我們已成為全球最多元化的大麻生活方式和消費品公司，擁有 4 個獨特且互補的業務部門。其中包括： 大麻分為醫療和成人用途；飲料，包括精釀啤酒、烈酒、即飲混合雞尾酒和非酒精飲料以及 CBD 飲料；健康產品；以及醫療配送業務。

As a result, we had a record Q1 with net revenue of $177 million, representing 15% growth year-over-year. We grew EBITDA in our cannabis business and our international businesses. We grew Canadian cannabis revenue by 16.5% in the quarter and remain the leading, strongest, and most profitable international cannabis LP with approximately a 13.4% share in Canada, inclusive of HEXO and Truss, 631 basis points ahead of the next LP.

結果，我們第一季的淨收入達到創紀錄的 1.77 億美元，年增 15%。我們的大麻業務和國際業務實現了 EBITDA 成長。本季我們加拿大大麻收入成長了16.5%，仍然是領先、最強、獲利能力最強的國際大麻有限合夥人，在加拿大約佔13.4% 的份額，包括HEXO 和Truss，領先第二名有限合夥人631 個基點。

From a product category perspective, we continue to lead cannabis sales in almost every market across Canada, the largest federally legal cannabis market in the world. Tilray is #1 in cannabis flower, oils, concentrates, and THC beverages and #2 in pre-rolls, #4 in vape, and the Top 10 in all other categories. Aggregating all categories in either inhalables or ingestibles, Tilray is #1 in both of these groups.

從產品類別的角度來看，我們繼續引領加拿大幾乎每個市場的大麻銷售，加拿大是世界上最大的聯邦合法大麻市場。 Tilray 在大麻花、油、濃縮物和 THC 飲料中排名第一，在預卷中排名第二，在電子煙中排名第四，在所有其他類別中排名前十。總結吸入劑或攝取劑的所有類別，Tilray 在這兩個類別中均排名第一。

We grew international cannabis revenue by 37%, and we are the market leader in medical cannabis across Europe, with leading market shares in Germany, Poland and Luxembourg. We are a leader in the hemp food industry, with a 52% branded market share, with Manitoba Harvest in the U.S. and Canadian market share of nearly 80%.

我們的國際大麻收入成長了 37%，我們是整個歐洲醫用大麻的市場領導者，在德國、波蘭和盧森堡擁有領先的市場份額。我們是大麻食品行業的領導者，擁有 52% 的品牌市場份額，其中 Manitoba Harvest 在美國和加拿大的市場份額接近 80%。

With our recent acquisition of 8 craft beer and beverage brands from Anheuser-Busch, we are growing fast in the craft beverage alcohol industry, solidifying our leadership position as the fifth largest U.S. craft beer brewer with 5% market share in a growing market. And since year-end, we paid down $177 million of our debt.

隨著我們最近從Anheuser-Busch 收購了8 個精釀啤酒和飲料品牌，我們在精釀飲料酒精行業中快速成長，鞏固了我們作為美國第五大精釀啤酒釀造商的領導地位，在不斷增長的市場中擁有5% 的市佔率。自年底以來，我們償還了 1.77 億美元的債務。

The balance we have brought to our business model by going beyond cannabis has given us a strong position today and is positioning us well for higher growth future opportunities, including when U.S. federal cannabis legalization and German legalization of adult-use cannabis happens. We believe we're in a great place going forward, well positioned with the resources, infrastructure and operations, the distribution of brands, sales and marketing and know-how to lead the revolution of cannabis CBG into the American and European mainstream.

我們透過超越大麻為我們的商業模式帶來的平衡使我們今天處於有利地位，並使我們能夠為未來更高的增長機會做好準備，包括當美國聯邦大麻合法化和德國成人用大麻合法化發生時。我們相信，我們在未來的發展中處於有利位置，擁有良好的資源、基礎設施和營運、品牌分銷、銷售和行銷以及專業知識，能夠引領大麻 CBG 革命進入美國和歐洲主流。

Let us now discuss our individual segments with the context of our overall business. Cannabis was our largest segment by net revenue and comprised of approximately 40% of the total revenue. Gross revenue from Canadian adult-use cannabis increased 22%, driven by innovation and shared growth in dried flower, vapes, and pre-roll. This was achieved both organically and as a result of our recent acquisitions, and despite price compression in the quarter of approximately $3 million from the prior year quarter.

現在讓我們結合整體業務來討論我們的各個細分市場。以淨收入計算，大麻是我們最大的細分市場，約佔總收入的 40%。在乾燥花、電子煙和預捲產品的創新和共同成長的推動下，加拿大成人用大麻的總收入成長了 22%。儘管本季的價格比去年同期壓縮了約 300 萬美元，但這一目標是有機實現的，也是我們最近收購的結果。

Notably in Q1, according to combined Hifyre and Weedcrawler retail sales data, Tilray sold over double the units of the #2 and #3 LPs combined. In equivalent kgs, we sold double the amount of the #2 LP. As pre-rolls continue to grow, we shipped over 18 million pre-rolls, 200,000 per day. That is a lot of pre-rolls.

尤其是在第一季度，根據 Hifyre 和 Weedcrawler 的合併零售銷售數據，Tilray 的銷售量是第二名和第三名 LP 總銷量的兩倍多。以同等公斤數計算，我們售出的 LP 數量是 2 號 LP 的兩倍。隨著前貼片的不斷增長，我們已售出超過 1800 萬張前貼片，即每天 20 萬張。這是很多預卷。

In terms of market share in our core business of Tilray, when we exclude HEXO and Truss, we finished Q1 with 8.76% market share, which is up versus Q4 2023 and year-over-year versus fiscal year 2023 Q1 by 57 basis points and 38 basis points, respectively. We maintained our #1 market share position and expanded the gap by an additional 20 basis points to an overall gap of 136 basis points versus the #2 LP by market share. Our combined market share for Q1 when including Tilray HEXO and Truss was 13.4%.

就Tilray 核心業務的市佔率而言，當我們排除HEXO 和Truss 時，我們第一季的市佔率為8.76%，與2023 年第四季相比成長了57 個基點，與2023 財年第一季度相比，較去年成長了57 個基點，分別為 38 個基點。我們保持了第一大市場份額的地位，並將差距擴大了 20 個基點，與市場份額排名第二的有限合夥人的總體差距達到 136 個基點。包括 Tilray HEXO 和 Truss 在內，我們第一季的綜合市佔率為 13.4%。

Regionally, we grew our share at all 4 major markets in Ontario, Alberta, British Columbia and Quebec, furthering our best-in-class market coverage to a highly fragmented retail network. Finally, we continue to have a relentless focus on synergies. We reported planned synergies of $27 million with the HEXO transaction. In just 2 months, we have had already achieved 17.1% of the target through elimination of duplicate costs, streamlining SG&A, and renegotiating key contracts.

從區域來看，我們在安大略省、艾伯塔省、不列顛哥倫比亞省和魁北克省的所有 4 個主要市場的份額均有所增長，進一步擴大了我們對高度分散的零售網絡的一流市場覆蓋範圍。最後，我們繼續不懈地關注協同效應。我們報告了 HEXO 交易計劃產生 2700 萬美元的協同效應。在短短 2 個月內，透過消除重複成本、簡化 SG&A 以及重新談判關鍵合同，我們已經實現了 17.1% 的目標。

In Q2, we will complete the integration of HEXO from an operational standpoint, which includes centralizing our packaging and logistics into Aphria One facility, driving further efficiencies.

在第二季度，我們將從營運角度完成 HEXO 的整合，其中包括將我們的包裝和物流集中到 Aphria One 設施中，進一步提高效率。

With regard to our Masson facility in Quebec, we've invested in making the necessary changes to convert and optimize the facility to grow cannabis and fruits and vegetables for the Quebec marketplace. This work is on track, and we will begin planting cucumbers this year.

關於我們在魁北克的馬森工廠，我們已投資進行必要的改變，以改造和優化該設施，為魁北克市場種植大麻和水果和蔬菜。這項工作正在按計劃進行，今年我們將開始種植黃瓜。

On a related acquisition note; in August, we purchased the remaining 57.5% equity ownership of Truss Beverage Company from Molson Canadian. The transaction further strengthens our #1 cannabis market share position in Canada, with a combined market share of approximately 40% in the THC beverage and positions us at the forefront of the adult-used beverage sector.

在相關收購說明中； 8月，我們從Molson Canadian手中收購了Truss Beverage Company剩餘57.5%的股權。這項交易進一步鞏固了我們在加拿大大麻市場份額第一的地位，在 THC 飲料中的綜合市場份額約為 40%，並使我們處於成人飲料行業的前沿。

Our expanded cannabis portfolio now includes the fastest-growing beverage brands, including XMG, Mollo, House of Terpenes and Little Victory. We believe that THC beverages present a significant opportunity. There are nearly 11 million customers in Canada for cannabis beverages and the category is already roughly CAD 100 million at retail. In addition to the category opportunity, transitioning THC beverage production to our London facility will generate further cost savings and synergies.

我們擴大的大麻產品組合現在包括成長最快的飲料品牌，包括 XMG、Mollo、House of Terpenes 和 Little Victory。我們相信 THC 飲料提供了一個重要的機會。加拿大有近 1,100 萬大麻飲料消費者，該類別的零售額已約為 1 億加元。除了類別機會外，將 THC 飲料生產轉移到我們的倫敦工廠還將進一步節省成本並產生協同效應。

Turning to International Cannabis, which achieved revenue growth and improved profitability in Q1. Our intentions are twofold; strengthening our leadership position and market share in the medical cannabis category where we currently operate across 21 countries and achieving early-mover advantage in new countries as medical legalization advances.

轉向國際大麻，該公司在第一季度實現了收入成長並提高了盈利能力。我們的意圖是雙重的；加強我們在醫用大麻類別中的領導地位和市場份額，我們目前在 21 個國家開展業務，並隨著醫療合法化的進展在新國家取得先發優勢。

Based on these trends to-date, we are building momentum in Poland, Italy, the U.K. and the Czech Republic. As we look to fiscal 2024 for our International Cannabis business, our focus is on high-quality medical cannabis brands, which are trusted by patients, health care professionals, and government officials around the world.

基於迄今為止的這些趨勢，我們正在波蘭、義大利、英國和捷克共和國建立勢頭。展望 2024 財年的國際大麻業務，我們的重點是高品質的醫用大麻品牌，這些品牌受到世界各地患者、醫療保健專業人員和政府官員的信賴。

Of our best-in-class cultivation facilities in Portugal and Germany, where we are 1 of only 3 companies in Germany that can cultivate in country as well as leveraging our Canadian cannabis facilities and expertise, our medical distribution network, led by our integrated Tilray Pharma and medical cannabis teams with relationships across 13,000 pharmacies.

我們在葡萄牙和德國擁有一流的種植設施，我們是德國僅有的 3 家可以在國內種植並利用我們的加拿大大麻設施和專業知識的公司之一，我們的醫療分銷網絡由我們的集成 Tilray 領導製藥和醫用大麻團隊與13,000 家藥局建立了關係。

From a bottom line perspective, we are laser-focused on optimizing our European platform, working to remove approximately $8 million of costs from our businesses, of which we've already completed over $6.8 million. CC Pharma, which we are rebranding to Tilray Pharma, is our established medical distribution platform for traditional branded and generic pharmaceuticals as well as medical cannabis.

從獲利角度來看，我們專注於優化我們的歐洲平台，努力消除我們業務中約 800 萬美元的成本，其中我們已經完成了超過 680 萬美元。 CC Pharma 我們將其更名為 Tilray Pharma，是我們為傳統品牌和仿製藥以及醫用大麻建立的醫療分銷平台。

This business segment, from a revenue perspective, is currently equal in size to our cannabis segment, comprising slightly less than 40% of the total sales mix. It grew 14% in Q1 from a year ago and expanded its gross profit margin due to a reduction in production costs and an improving product mix.

從收入角度來看，該業務部門目前的規模與我們的大麻部門相當，佔總銷售組合略低於 40%。由於生產成本降低和產品結構改善，第一季年增 14%，毛利率擴大。

Similar to the U.S., we are not planning our business around adult-use legalization in Germany. However, there is proposed legislation in Germany for medical cannabis to be declassified as a narcotic. And if the proposed German legislation comes to pass, it may be prescribed as a medicine, rather than a narcotic, which is more difficult for health care providers to prescribe. This in turn would open accessibility to a larger patient population.

與美國類似，我們在德國的業務規劃並非圍繞成人使用合法化。然而，德國提議立法將醫用大麻取消列為麻醉藥品。如果擬議的德國立法獲得通過，它可能會被作為藥物而不是麻醉劑來處方，而麻醉劑對於醫療保健提供者來說更難開處方。這反過來又將為更多的患者群體提供可近性。

Now turning to our beverage alcohol and CPG portfolio, a high-quality growing portfolio of lifestyle craft beverage alcohol and wellness brands that have enabled us to build a strong footprint in the U.S. market without engaging in business that touches a cannabis plant. Importantly, beverages are our fast-growing category, with significant growth through innovation and M&A, and high future growth and healthy margins.

現在轉向我們的飲料酒精和CPG 產品組合，這是一個高品質的、不斷增長的生活方式工藝飲料酒精和健康品牌組合，使我們能夠在美國市場建立強大的足跡，而無需從事涉及大麻植物的業務。重要的是，飲料是我們快速成長的類別，透過創新和併購實現顯著成長，以及未來的高成長和健康的利潤率。

Within beverages, for example, the craft beer business is expected to grow to $282 billion globally by 2032, a CAGR of 10.5% between 2023 and 2032, with North America accounting for 40% of the revenue today of that $40 billion in 2023. Given that, it is a market we have been following closely in order to seize on the clear opportunity that exists today.

例如，在飲料領域，精釀啤酒業務預計到 2032 年全球將成長至 2820 億美元，2023 年至 2032 年複合年增長率為 10.5%，其中北美佔 2023 年 400 億美元收入中的 40%。一直在密切關注這個市場，以便抓住當今存在的明顯機會。

Reflecting that, earlier this week, we welcomed the newest additions to the Tilray Brands family, as we closed on our acquisition of 8 beer and beverage brands from Anheuser-Busch. These brands, Shock Top, Breckenridge Brewery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewery, Widmer Brothers Brewing, Square Mile Cider Company and HiBall Energy, have enabled us to further diversify and expand our beverage alcohol segment while elevating our position within craft beer from #9 to projected #5.

本週早些時候，我們完成了對 Anheuser-Busch 的 8 個啤酒和飲料品牌的收購，迎來了 Tilray Brands 家族的最新成員。這些品牌（Shock Top、Breckenridge Brewery、Blue Point Brewing Company、10 Barrel Brewing Company、Redhook Brewery、Widmer Brothers Brewing、Square Mile Cider Company 和HiBall Energy）使我們能夠進一步多元化和擴大我們的飲料酒精細分市場，同時提升我們的地位精釀啤酒從 #9 到預期的 #5。

We are confident that as we layer on our team's deep experience and skills in product innovation and marketing, we will be able not only grow our brands, but also evolve the overall craft beer category, where there is clear and strong opportunity to grow the consumer demographics and expand into new products and formats, such as RTD and new channels.

我們相信，憑藉我們團隊在產品創新和行銷方面的豐富經驗和技能，我們不僅能夠發展我們的品牌，而且能夠發展整個精釀啤酒類別，這裡有明顯而強大的機會來發展消費者人口統計數據，並擴展到新產品和格式，例如RTD 和新通路。

Taken together, over the last 3 years, we've added a total of 13 brands to our beverage alcohol portfolio; the 8 that I just referred to in addition to SweetWater Brewing Company in December of 2020, Alpine Beer and Green Flash Brewing Company in January of 2022, and Montauk Brewing Company in November of 2022. We also own Breckenridge Distillery, the award-winning spirits brand and the world's best blended whiskey, which was acquired in December of 2021.

總的來說，在過去 3 年裡，我們的酒精飲料產品組合中總共增加了 13 個品牌；除了我剛才提到的2020 年12 月的SweetWater Brewing Company、2022 年1 月的Alpine Beer 和Green Flash Brewing Company 以及2022 年11 月的Montauk Brewing Company 之外，我們還擁有Breckenridge Distillery，這是一家屢獲殊榮的烈酒公司。

In terms of overall segment performance, quarterly revenue for the beverage alcohol business was $24.2 million in Q1, representing a 17% growth from last year, and we're just getting started in making this segment a more meaningful component of our financials.

就整體部門業績而言，飲料酒精業務第一季的季度收入為 2,420 萬美元，比去年增長 17%，我們剛開始使該部門成為我們財務中更有意義的組成部分。

We project pro forma revenue for our beverage alcohol segment, including these recently acquired brands of about $300 million. Finally, our wellness segment is delivering higher gross profit on a stable top line as it's adjusted to higher ingredient costs through increased pricing from a year ago. It remains an important element of our U.S. strategy because of these factors.

我們預計飲料酒精細分市場的預計收入約為 3 億美元，其中包括這些最近收購的品牌。最後，我們的保健品業務在穩定的營收基礎上實現了更高的毛利，因為它透過比一年前提高定價來適應更高的原料成本。由於這些因素，它仍然是我們美國戰略的重要組成部分。

Strong consumer interest in hemp products, expanded distribution into Whole Foods and Walmart, and product innovation to meet needs of the Gen Z, millennial consumer through new hemp-forward foods and supplement offerings in CBD wellness beverage, like our Happy Flower. It's also worth noting that Manitoba Harvest is the industry leader in terms of sustainability, having recertified as a B Corp for the 10th consecutive year and having launched the first regenerative organic certified Hemp Heart SKU this past spring.

消費者對大麻產品產生了濃厚的興趣，擴大了全食超市和沃爾瑪的分銷範圍，並透過新的大麻食品和CBD 健康飲料中的補充劑產品（例如我們的Happy Flower）進行產品創新，以滿足Z世代、千禧世代消費者的需求。另外值得注意的是，Manitoba Harvest 在永續發展方面處於行業領先地位，連續第十年重新獲得共益企業認證，並於今年春天推出了第一個再生有機認證的 Hemp Heart SKU。

Across the board, we are delivering solid performance by optimizing our U.S. businesses and setting the stage for significant growth in the near and longer-term future for existing and newly acquired brands.

總體而言，我們透過優化我們的美國業務並為現有和新收購的品牌在近期和長期的未來顯著增長奠定基礎，實現了穩健的業績。

In summary, we think the opportunities afforded by our intentional business diversifications are numerous and exciting as we look ahead. Our go-forward plan is to execute on what matters most, maximizing revenue and growth, optimizing efficiency, and maintaining our balance sheet strength as we invest in our industry-leading brands.

總之，我們認為，展望未來，我們有意的業務多元化所提供的機會是眾多且令人興奮的。我們的未來計劃是執行最重要的事情，最大限度地提高收入和成長，優化效率，並在投資行業領先品牌的同時保持我們的資產負債表實力。

I will now turn the call over to Carl to discuss the financials in greater detail.

我現在將把電話轉給卡爾，更詳細地討論財務狀況。

Thank you, Irwin. Before reviewing our quarterly performance, let me remind everyone that our financial results are presented in accordance with U.S. GAAP and in U.S. dollars, and we will reference both GAAP and non-GAAP adjusted results throughout our discussion. In addition, our earnings press release contains a reconciliation of our reported results under GAAP to the non-GAAP measures identified during our remarks.

謝謝你，歐文。在回顧我們的季度業績之前，讓我提醒大家，我們的財務表現是根據美國公認會計原則並以美元計算的，我們將在整個討論過程中參考公認會計原則和非公認會計原則調整後的結果。此外，我們的收益新聞稿包含我們根據 GAAP 報告的業績與我們在演講中確定的非 GAAP 指標的調整表。

Q1 total net revenue rose to $177 million compared to the prior year quarter at $153 million, representing 15% growth. In constant currency, net revenue similarly grew 15% based upon constant currency revenue of $176 million in Q1 this year.

第一季總淨收入增至 1.77 億美元，較去年同期的 1.53 億美元成長 15%。以固定匯率計算，今年第一季的淨收入同樣成長了 15%，以固定匯率計算的營收為 1.76 億美元。

By segment, cannabis net revenue rose 20% or 22% on a constant currency basis, inclusive of $3.1 million due to price compression in Canada, of which virtually all, also represented a reduction in EBITDA.

按部門劃分，以固定匯率計算，大麻淨收入增長了 20% 或 22%，其中包括由於加拿大價格壓縮而導致的 310 萬美元，其中幾乎所有收入也代表了 EBITDA 的減少。

Distribution revenue rose 14% or 11% on a constant currency basis. Beverage alcohol revenue rose 17% and wellness revenue declined 1% but was flat on a constant currency basis. Cannabis excise taxes, which are a reduction from revenue, totaled $26.6 million compared to $17.1 million last year. This reflected a sharp increase in cannabis revenue generated in Canada versus the year ago period due in part to the HEXO acquisition, which closed during Q1, offset by continued price compression in the market.

分銷收入成長 14%，以固定匯率計算成長 11%。酒精飲料收入成長了 17%，保健品收入下降了 1%，但以固定匯率計算持平。大麻消費稅（從收入中減少）總計 2,660 萬美元，而去年為 1,710 萬美元。這反映出加拿大大麻收入較去年同期大幅增加，部分原因是 HEXO 收購在第一季完成，但被市場持續價格壓縮所抵銷。

Recall that excise taxes were predominantly computed as a fixed price on grams sold rather than as a percentage of the selling price. While there is an excise task force to present these challenges to the Minister of Finance in Canada, we do not believe some level of reform is likely in the near term.

回想一下，消費稅主要以銷售克數的固定價格計算，而不是以銷售價格的百分比計算。雖然有一個消費稅工作小組向加拿大財政部長提出這些挑戰，但我們認為短期內不可能進行某種程度的改革。

As Irwin already emphasized the inherent benefits of having a diversified business model, it is notable that in both Q1 this year and last year, our cannabis and distribution segment each represented about 40% of our total revenue mix, while beverage alcohol and wellness represented about 14% and 8%, respectively. These percentages will change with a full quarter of contributions from the HEXO and Truss, along with the addition of the acquired brands from Anheuser-Busch.

由於Irwin 已經強調了多元化業務模式的固有好處，值得注意的是，在今年第一季和去年，我們的大麻和分銷部門分別占我們總收入組合的40% 左右，而飲料酒精和健康業務則佔約40%。隨著 HEXO 和 Truss 整個季度的貢獻以及從 Anheuser-Busch 收購的品牌的加入，這些百分比將會改變。

We believe we will achieve a balance of 30% cannabis, 30% distribution, 30% beverage alcohol, and the final 10% wellness. But the key takeaway here is that we have achieved great balance and are not overly dependent on any one segment from a top line or even gross profit standpoint.

我們相信我們將實現 30% 大麻、30% 分銷、30% 飲料酒精和最後 10% 健康的平衡。但這裡的關鍵要點是，我們已經實現了很大的平衡，從營收甚至毛利的角度來看，我們並沒有過度依賴任何一個細分市場。

In terms of our geographical footprint, we are also highly diversified, with slightly more than half of our revenue from North America and about 45% from EMEA, with the remainder from other parts of the world.

就我們的地理分佈而言，我們也高度多元化，略多於一半的收入來自北美，約 45% 來自歐洲、中東和非洲，其餘來自世界其他地區。

Gross profit was $44.2 million compared to $48.6 million in the prior year quarter, while gross margin decreased to 25% from 32% in the prior year quarter. Adjusted gross profit, inclusive of purchase price accounting step-up was nearly flat at $49.3 million compared to $49.7 million in the prior year quarter, while adjusted gross margin was 28% compared to 32%.

毛利為 4,420 萬美元，去年同期為 4,860 萬美元，毛利率從去年同期的 32% 降至 25%。調整後的毛利（包括購買價格會計增量）幾乎持平，為 4,930 萬美元，而去年同期為 4,970 萬美元，調整後的毛利率為 28%，而去年同期為 32%。

I will discuss adjusted gross margin by individual segment in a moment, but it improved across 3 of our 4 segments, with the exception being cannabis that was primarily due to the prior quarter having a 100% gross margin on the HEXO advisory fee revenue.

我稍後將討論各個細分市場的調整後毛利率，但我們4 個細分市場中的3 個細分市場的毛利率有所改善，大麻除外，這主要是由於上一季度HEXO 諮詢費收入的毛利率為100%。

Net loss improved to $55.9 million compared to $65.8 million in the prior year quarter. On a per share basis, this amounted to a net loss of $0.10 versus $0.13 in the prior year quarter. Adjusted EBITDA was $11.4 million, down from $13.5 million in the prior year quarter. The primary variance relates to the HEXO advisory fee revenue in the prior year quarter that was not duplicated this quarter as we owned HEXO for the majority of the quarter. Other contributing factors include the timing difference in recognizing synergies from operating results after completing acquisitions.

淨虧損從去年同期的 6,580 萬美元增至 5,590 萬美元。以每股計算，這相當於淨虧損 0.10 美元，而去年同期淨虧損為 0.13 美元。調整後 EBITDA 為 1,140 萬美元，低於去年同期的 1,350 萬美元。主要差異與上一年季度的 HEXO 諮詢費收入有關，該收入在本季度沒有重複，因為我們在本季度的大部分時間都擁有 HEXO。其他影響因素包括完成收購後從經營績效中認知到綜效的時間差異。

Recall that when we reported Q4 2022 during the summer of 2022, we announced a $30 million cost optimization plan. Through August 31 of this year, we have achieved $22 million on an annualized run rate basis, of which $21 million represents actual cost savings through Q1. This is up from $18.5 million when we reported last quarter.

回想一下，當我們在 2022 年夏季報告 2022 年第四季時，我們宣布了一項 3000 萬美元的成本優化計劃。截至今年 8 月 31 日，我們已實現年化運行率 2,200 萬美元，其中 2,100 萬美元代表第一季的實際成本節省。這高於我們上季報告時的 1,850 萬美元。

Operating cash flow improved by $30.5 million to a loss of $15.8 million from a loss of $46.3 million in the prior year quarter. This was the result of improved operating efficiencies realized through our synergy programs and management of our working capital requirements.

營運現金流從去年同期的虧損 4,630 萬美元改善至虧損 1,580 萬美元，增加了 3,050 萬美元。這是透過我們的協同計劃和營運資本需求管理來提高營運效率的結果。

Turning now to our business segments. Gross cannabis revenue of $96.9 million was comprised of $71.2 million in Canadian adult use revenue, $14.3 million in international cannabis revenue, $6.1 million in Canadian medical cannabis revenue and $5.3 million in wholesale cannabis revenue. Net cannabis revenue was $70.3 million, representing a 20% increase from the year-ago period or 22% in constant currency. The positive variance was mostly related to increased organic growth and the acquisitions of HEXO and Truss.

現在轉向我們的業務部門。大麻總收入為 9,690 萬加元，其中包括 7,120 萬加元的加拿大成人使用收入、1,430 萬加元的國際大麻收入、610 萬加元的加拿大醫用大麻收入和 530 萬加元的批發大麻收入。大麻淨收入為 7,030 萬美元，比去年同期成長 20%，以固定匯率計算成長 22%。正方差主要與有機成長的增加以及對 HEXO 和 Truss 的收購有關。

Canadian medical cannabis decreased slightly due to increased competition from the adult-use market and price compression in the medical cannabis market. Adult-use cannabis increased 22% due to organic growth from our existing brands launching new products as well as the increased revenue from the acquisition of HEXO and Truss. Offsetting the increase in the current period was a substantial reduction of advisory services revenue from the prior year quarter due to the HEXO acquisition, which terminated the previous strategic arrangement that was in place.

由於成人使用市場的競爭加劇以及醫用大麻市場的價格壓縮，加拿大醫用大麻略有下降。由於我們現有品牌推出新產品的有機成長以及收購 HEXO 和 Truss 帶來的收入增加，成人用大麻成長了 22%。由於 HEXO 收購終止了先前的策略安排，諮詢服務收入較去年同期大幅減少，抵銷了本期的成長。

The substantial increase in wholesale cannabis revenue was an opportunistic sale, which helped increase our cash flow from operations, even though it had a negative impact on gross margin and EBITDA. International cannabis grew 37%, largely because of the expansion into emerging international medical markets.

批發大麻收入的大幅成長是一次機會主義銷售，這有助於增加我們的營運現金流，儘管它對毛利率和 EBITDA 產生了負面影響。國際大麻成長了 37%，主要是由於向新興國際醫療市場的擴張。

Cannabis gross profit was $19.8 million and cannabis gross margin was 28% compared to $29.7 million and 51% in the prior year quarter. Adjusted cannabis gross profit, which removes the purchase price accounting step-up, decreased to $24.3 million from $29.7 million in the prior year quarter, while adjusted gross cannabis margin decreased to 35% from 51% in the prior year quarter.

大麻毛利為 1,980 萬美元，大麻毛利率為 28%，而去年同期為 2,970 萬美元和 51%。在扣除購買價格會計增量後，調整後的大麻毛利潤從去年同期的 2,970 萬美元降至 2,430 萬美元，而調整後的大麻毛利率從去年同期的 51% 降至 35%。

However, if we are to exclude advisory services revenue from HEXO of $1.5 million in Q1 2024 and $7.8 million in Q1 2023, and the wholesale transaction with a negative gross profit of $2.7 million in the quarter, our adjusted cannabis gross margin would have been 39% compared to 43%. The remaining decrease is a result of price compression.

然而，如果我們排除HEXO 2024 年第一季150 萬美元和2023 年第一季780 萬美元的諮詢服務收入，以及該季度毛利為負270 萬美元的批發交易，我們調整後的大麻毛利率將為39 % 相比 43%。剩餘的減少是價格壓縮的結果。

Distribution revenue, derived predominantly through CC Pharma, increased 14% to $69.2 million from $60.6 million in the prior year quarter. The increase was driven by increased capacity and a revamped sales approach to expand our distribution network of procured products and was aided partially by the strengthening of the euro relative to the U.S. dollar.

主要透過 CC Pharma 獲得的分銷收入從去年同期的 6,060 萬美元增長 14% 至 6,920 萬美元。這一增長是由於產能增加和為擴大採購產品分銷網絡而改進的銷售方式所推動的，部分原因是歐元相對於美元的走強。

Distribution gross profit increased to $7.7 million compared to $5.6 million, while distribution gross margin increased to 11% from 9% in the prior year quarter. Similar to the last 3 fiscal quarters, the year-over-year increase was a result of a positive change in product mix, our focus on higher margin sales, including the decision to exit the medical device reprocessing line.

分銷毛利從去年同期的 560 萬美元增至 770 萬美元，分銷毛利率從去年同期的 9% 增至 11%。與過去 3 個財季類似，年成長是產品結構正面變化的結果，我們專注於更高利潤的銷售，包括決定退出醫療器材再處理生產線。

Beverage alcohol revenue was $24.2 million, up 17% from $20.7 million in the prior year quarter. The positive delta was due to contributions from our Montauk brewery acquisition last November. Beverage alcohol gross profit increased to $12.9 million compared to $9.8 million, while beverage alcohol gross margin increased to 53% from 47% in the prior year quarter.

酒精飲料收入為 2,420 萬美元，比去年同期的 2,070 萬美元增長 17%。正增量歸因於我們去年 11 月收購蒙托克啤酒廠的貢獻。酒精飲料毛利從去年同期的 980 萬美元增至 1,290 萬美元，酒精飲料毛利率從去年同期的 47% 增至 53%。

Adjusted beverage alcohol gross profit, which removes the purchase price accounting step-up, was $13.5 million compared to $10.9 million in the prior year quarter, while adjusted gross margin rose to 56% from 53% in the prior year quarter. This increase was related to a favorable sales mix change between beer and spirits, partially offset by the impact of the Montauk acquisition that was not completed in the prior year period.

扣除購買價格會計增量後，調整後的飲料酒精毛利為 1,350 萬美元，去年同期為 1,090 萬美元，調整後毛利率從去年同期的 53% 升至 56%。這一增長與啤酒和烈酒之間有利的銷售組合變化有關，但部分被去年同期未完成的蒙托克收購的影響所抵消。

Wellness segment revenue held at $13.3 million compared to $13.4 million in the prior year quarter, despite increasing pricing to combat ingredient cost inflation. Wellness gross profit was $3.8 million, up from $3.5 million in the prior year quarter and gross margin rose to 29% from 26% as we countered the impacts of higher input costs of seed ingredients with higher pricing.

儘管為了應對原料成本上漲而提高了定價，但保健品部門的收入仍維持在 1,330 萬美元，而去年同期為 1,340 萬美元。健康毛利為 380 萬美元，高於去年同期的 350 萬美元，毛利率從 26% 上升至 29%，因為我們透過提高定價來應對種子原料投入成本上升的影響。

Our cash and marketable securities balance as of August 31 was $464.9 million, down from $490.6 million in the year-ago period, but increased from the balance at year-end of $448.5 million. During Q1, we entered into a new $120 million credit agreement led by Bank of America and included syndicate members, City National Bank, TD Bank and Pinnacle Financial for our beverage alcohol division, which is comprised of domestic-owned subsidiaries and provides for, among other things, a $70 million term loan facility; a $20 million delayed draw term loan facility, which we drew in full as part of the payment of the purchase price on the acquisition of the Anheuser-Busch brands; and a $30 million line of credit, of which we have only drawn $7 million.

截至 8 月 31 日，我們的現金和有價證券餘額為 4.649 億美元，低於去年同期的 4.906 億美元，但較年末餘額 4.485 億美元有所增加。在第一季度，我們與美國銀行牽頭，包括銀團成員、城市國民銀行、道明銀行和Pinnacle Financial 為我們的飲料酒精部門簽訂了一項新的1.2 億美元信貸協議，該部門由國內子公司組成，並規定：其他，7000萬美元的定期貸款； 2000 萬美元的延遲提款定期貸款融資，作為收購安海斯-布希品牌的購買價的一部分，我們全額提取了該貸款；還有 3000 萬美元的信貸額度，但我們只提取了其中 700 萬美元。

The new credit agreement extended the maturity date on the loan from December 2023 out to June 2028, with reduced repayment requirements, improved financial covenants, all while maintaining the interest rate spread on the loans. On August 31, we settled our obligations under a $50 million convertible promissory note, which had a maturity date of September 1. And finally, subsequent to quarter-end, we settled and paid in full our Tilray '23 convertible note.

新的信貸協議將貸款到期日從2023年12月延長至2028年6月，降低了還款要求，改善了財務契約，同時維持了貸款利差。 8 月31 日，我們結清了5000 萬美元可轉換本票的義務，該票據的到期日為9 月1 日。轉換票據。

Let's now reiterate our guidance for fiscal 2024, which ends on May 31, 2024. Adjusted EBITDA is still projected at $68 million to $78 million. Note that we are not increasing this range after having acquired the beverage brands. They will be accretive to EBITDA, as we said when we first announced the transaction, but will not have a material impact on EBITDA in the first year post-closing.

現在讓我們重申我們對 2024 財年（截至 2024 年 5 月 31 日）的指導。請注意，在收購飲料品牌後，我們不會增加這個範圍。正如我們在首次宣布交易時所說，它們將增加 EBITDA，但不會對交易結束後第一年的 EBITDA 產生重大影響。

We also project positive adjusted free cash flow from operations, excluding our cost to integrate HEXO, Truss and the brands from Anheuser-Busch, and the cash income taxes we pay at Aphria Diamond. We will also work to minimize CapEx and improve our industry-leading balance sheet.

我們也預期營運中調整後的自由現金流為正，不包括整合 HEXO、Truss 和 Anheuser-Busch 品牌的成本，以及我們在 Aphria Diamond 支付的現金所得稅。我們還將努力最大限度地減少資本支出並改善我們行業領先的資產負債表。

With that, I will conclude our prepared remarks and open the lines for questions from our covering analysts.

至此，我將結束我們準備好的發言，並開始接受我們的採訪分析師的提問。

Operator, what's the first question?

接線員，第一個問題是什麼？

(Operator Instructions) Our first question comes from the line of Vivien Azer with TD Cowen.

（操作員說明）我們的第一個問題來自 Vivien Azer 和 TD Cowen 的線路。

This is Robin Holby on for Vivien Azer. First off, congratulations on closing the acquisition of the ABI beverage brands. Today, you called out the margin accretion from the Montauk acquisition to your overall beverage margins. Could you please speak to how you see margins for that segment evolving over time, in particular that you're not only acquiring craft beer brands, but also on-premise infrastructure?

我是費雯·阿澤 (Vivien Azer) 的羅賓·霍爾比 (Robin Holby)。首先，恭喜您完成 ABI 飲料品牌的收購。今天，您提到了蒙托克收購為您的整體飲料利潤帶來的利潤成長。您能否談談您如何看待該細分市場的利潤隨著時間的推移而變化，特別是您不僅收購精釀啤酒品牌，還收購內部基礎設施？

So, the increase in gross margin in beverage alcohol this quarter was a combination of 2 things. One, it was a minor shift in sales mix or in product mix between beer and spirits and also as a result of the acquisition of Montauk.

因此，本季飲料酒精毛利率的成長是兩件事的結合。第一，這是啤酒和烈酒之間銷售組合或產品組合的微小變化，也是收購蒙托克的結果。

Going forward, we are very confident that the beer brands themselves will be able to maintain a margin above 50%, but our spirits business traditionally has been closer to 50%. So, as that blend gets mixed in with the new brands we've acquired, we'll start to see it move a little closer to the beer margin.

展望未來，我們非常有信心啤酒品牌本身能夠維持50%以上的利潤率，但我們的烈酒業務傳統上接近50%。因此，隨著這種混合物與我們收購的新品牌混合，我們將開始看到它向啤酒利潤率靠攏。

And I know one of Vivien's favorite questions is regards our brew houses. We sell more beer in our brew houses than food. And I think that's what's the important thing is, of how food does not dilute our margins in our brew houses, and that's what our brew houses are about, is to go out there and market and sell more and more beer and that's very much what our plans are.

我知道薇薇安最喜歡問的問題之一是關於我們的啤酒廠。我們啤酒廠銷售的啤酒比食品還多。我認為這就是重要的事情，食物不會稀釋我們啤酒廠的利潤，這就是我們啤酒廠的目的，就是走出去，營銷和銷售越來越多的啤酒，這就是我們的目的我們的計劃是。

Our next question comes from the line of Andrew Carter with Stifel.

我們的下一個問題來自安德魯·卡特和斯蒂菲爾的對話。

Okay. So, I want to just go back to the short report that was out last month and just use this opportunity to clear the air. First off, regarding Double Diamond, could you help us fully understand the liability? What is the required annual payment to your partners? Is it variable based on performance? Do you have the ability to throttle their production, therefore, adjust to market demands? And then the second question, do you pay some proportion of your minority shareholder in stock? And if so, are these stocks added back to EBITDA?

好的。因此，我想回顧一下上個月發布的空頭報告，並利用這個機會澄清誤會。首先，關於雙鑽，您能幫我們充分了解責任嗎？您的合作夥伴每年需要支付多少費用？它會根據性能而變化嗎？您是否有能力限制其生產，從而適應市場需求？那麼第二個問題，你是否向少數股東支付一定比例的股票？如果是，這些股票是否會重新計入 EBITDA？

Thanks, Andrew. I appreciate the opportunity to just make sure that everyone is crystal clear on this transaction. What I want to start off with first is that there -- we have never paid for an actual operating expense at Aphria Diamond out of the dividends that we've issued. The dividends that we have issued to our partners in Aphria Diamond has always been a payment of profit distribution at the -- there's a quarterly payment that happens and then there's a true-up at the end of the year. And that is the only amount that we have ever paid through those dividends.

謝謝，安德魯。我很高興有機會確保每個人都對這筆交易一清二楚。我首先要說的是——我們從未用我們發放的股息支付過 Aphria Diamond 的實際營運費用。我們向 Aphria Diamond 合作夥伴發放的股息一直是利潤分配的支付方式——每季支付一次，然後在年底進行調整。這是我們透過這些股息支付的唯一金額。

At one point during the year last year, we did provide some downside protection, and when that payment was triggered, that payment went through the income statement, and that was added back to EBITDA. That is the only piece of those dividend parts that has ever flown through the income statement, and it was an extremely small amount. And it was fully disclosed in our financial statements.

去年的某個時候，我們確實提供了一些下行保護，當觸發付款時，該付款將通過損益表，並添加回 EBITDA。這是股利部分中唯一進入損益表的部分，而且金額極小。這在我們的財務報表中得到了充分揭露。

I think, Andrew, what's important is that our partner in Diamond will take equity. And if he keeps it, it's his prerogative. If he sells it, it's his prerogative. But again, there's a distribution of dividends. At the same time, there's profits where we have 50%, 51%. And we're enjoying the profits of that too. So I think that's what's important. But to Carl's point, those -- the stock is not used to pay for operations of the business. I think that's what's important.

我認為，安德魯，重要的是我們的鑽石合作夥伴將獲得股權。如果他保留它，那就是他的特權。如果他賣了，那是他的特權。但同樣，還有股利分配。同時，我們有50%、51%的利潤。我們也正在享受其中的利潤。所以我認為這才是重要的。但就卡爾的觀點而言，這些股票並不用於支付公司的營運費用。我認為這才是重要的。

Our next question comes from the line of Aaron Grey with Alliance Global Partners.

我們的下一個問題來自 Aaron Gray 和 Alliance Global Partners 的電話。

So, just regarding the EBITDA and EBITDA guidance, you guys held it now despite the beer brands acquisitions that will be accretive. But if we just look at the quarter, excluding the small HEXO advisory fee, so call it about $10 million or so. So, can you walk us through how we think of this step up to get to that $68 million to $70 million for the fiscal year?

因此，就 EBITDA 和 EBITDA 指導而言，儘管啤酒品牌的收購將會帶來增值，但你們現在仍然持有它。但如果我們只看這個季度，不包括小額 HEXO 諮詢費，那麼它大約是 1000 萬美元左右。那麼，您能否向我們介紹我們如何看待這項舉措，以在本財年達到 6,800 萬至 7,000 萬美元的目標？

And maybe if you can talk about the drivers and how we should think about the sequencing of the EBITDA step-up to reach that guidance. I think that'd be very helpful, and any puts and takes whether I think it's going to be more through top line generation or more margin improvement via cost efficiencies or otherwise, I think that'd be appreciated.

也許您可以談談驅動因素以及我們應該如何考慮 EBITDA 升級的順序以達到該指導。我認為這將非常有幫助，任何看跌期權和看跌期權，無論我認為這將更多地通過收入生成還是通過成本效率或其他方式提高利潤率，我認為都會受到讚賞。

Thanks Aaron. That question kind of reminds me of some of the questions we had last year when people asked the same questions on phasing when we ultimately did get to the EBITDA guidance number. We traditionally have stronger performance in our spirits brand in Q2 every year. That's because it's the buy-in for the Christmas holiday season that happens. And so, we see strengthening in that quarter in that business.

謝謝亞倫。這個問題讓我想起去年我們遇到的一些問題，當我們最終獲得 EBITDA 指導數字時，人們就分階段提出了同樣的問題。傳統上，我們的烈酒品牌每年第二季都有更強的表現。那是因為這是聖誕節假期的買入時機。因此，我們看到該業務在該季度有所加強。

And then, as we evolve through the year, we have a significant outperformance in Q4 traditionally in our distribution business as people -- as pharmacies buy in for their customers going on vacation in the summer in our distribution business. And then we see significant buy-in on our beer business in the fourth quarter in the lead-up to summer.

然後，隨著我們在這一年中的發展，我們在第四季度的分銷業務中傳統上表現出色，因為人們——藥局在我們的分銷業務中為夏季度假的客戶買單。然後我們在夏季前的第四季度看到了對我們啤酒業務的大量買入。

Overlaying that this year is the synergies that we're achieving at HEXO -- on the HEXO transaction and our other open cost saving plans that we've had throughout the year. And so we're going to see a bigger jump in EBITDA next quarter. In Q2, you may see Q3 flat to down a little bit versus Q2, and then you'll see a bigger Q4.

今年，我們在 HEXO 上實現的協同效應——HEXO 交易和我們全年實施的其他公開成本節約計劃。因此，下個季度我們將看到 EBITDA 出現更大的成長。在第二季度，您可能會看到第三季度與第二季度相比持平或略有下降，然後您會看到第四季度更大。

And I think the big drivers here is top line, and you saw our top line in our first quarter, and you heard me mention, we sold 20 million pre-rolls. Our beer business, both SweetWater and Montauk were up. And that is the big thing, is getting the new distribution, but getting the new products out there. Ty and team launched a product called Gummies, which is a new product for us, and it was a big percentage of our growth of new products. Getting Montauk into other states, whether it's New Jersey, Pennsylvania or Georgia, is going to be a big part of our growth.

我認為這裡的主要動力是營收，你看到了我們第一季的營收，你也聽到我提到，我們賣出了 2000 萬份預卷。我們的啤酒業務，甜水啤酒和蒙托克啤酒業務都在成長。最重要的是獲得新的發行版，以及推出新產品。 Ty 和團隊推出了一款名為 Gummies 的產品，這對我們來說是一個新產品，它佔了我們新產品成長的很大比例。讓蒙托克進入其他州，無論是新澤西州、賓夕法尼亞州還是喬治亞州，都將成為我們成長的重要組成部分。

In our international business, growing our medical business in Poland, Germany, Italy, and places like that is going to be a big part of our business. And the big thing you got to remember, which I talked about, we did 3 acquisitions, and we're looking to take $27 million of costs out of HEXO. We're going to be looking to take tremendous amount of costs out of the ABI and it's going to take time.

在我們的國際業務中，在波蘭、德國、義大利等地發展醫療業務將成為我們業務的重要組成部分。你必須記住我談到的一件大事，我們進行了 3 次收購，我們希望從 HEXO 中節省 2700 萬美元的成本。我們將尋求從 ABI 中削減大量成本，這需要時間。

And with the acquisition of Truss that we bought from Molson's, we'll be moving those products to our London facility, and we have an excellent facility in Belleville, Ontario that we're going to look to do non-alc and energy drinks, some other types of drinks there. So we're looking for a big year on organic growth in new products, innovation, new distribution. We're focused on taking more and more costs out of the business.

透過收購我們從 Molson's 購買的 Truss，我們將把這些產品轉移到我們的倫敦工廠，我們在安大略省貝爾維爾擁有一家出色的工廠，我們將致力於生產非酒精飲料和能量飲料，那裡還有一些其他類型的飲料。因此，我們期待新產品、創新、新分銷領域有機成長的重要一年。我們致力於降低業務成本。

In regards to our facility in Masson, you heard me talk about that, where we're converting that to vegetables, and that should be online by the end of the year and taking tremendous amount of costs. So the drivers here are going to be top-line growth, taking costs out, which ultimately improve margins and drives profitability to the bottom line.

關於我們在馬森的工廠，你聽到我談到了這一點，我們正在將其轉化為蔬菜，並且應該在今年年底之前上線，並且需要花費大量成本。因此，這裡的驅動因素將是營收成長、降低成本，最終將提高利潤率並將獲利能力推向底線。

Our next question comes from the line of Matt Bottomley with Canaccord Genuity.

我們的下一個問題來自 Canaccord Genuity 的 Matt Bottomley。

Just wanted to first touch base on kind of that first strategic priority. And Irwin, you were just sort of talking about it now with respect to some of the organic growth. But on the M&A front, what is the current landscape if we're looking at the cannabis sector in general and federal legal environments with respect to what we're seeing in Canada and international markets?

只是想先接觸第一個策略優先事項。歐文，你現在只是在談論一些有機成長。但在併購方面，如果我們根據加拿大和國際市場的情況來審視整個大麻產業和聯邦法律環境，那麼目前的情況如何？

Is this something that you think probably has the least amount of opportunistic assets out there just given some of the headwinds we've seen in federal markets? And should we expect maybe more beverage alcohol focus when it comes to M&A allocation? I'm just curious if you have an indication one way or the other.

考慮到我們在聯邦市場看到的一些不利因素，您認為這可能是機會主義資產最少的東西嗎？在併購配置方面，我們是否應該期待更多酒精飲料的關注？我只是好奇你是否有這樣或那樣的跡象。

So I'm going to bring 2 other people in to talk about that. I have Blair MacNeil here who runs Canada. And I got to tell you, I spent some time with Blair and team in Toronto and spent some time with other control boards.

所以我要邀請另外兩個人來討論這個問題。我這裡有管理加拿大的布萊爾·麥克尼爾。我必須告訴你，我在多倫多與布萊爾和團隊一起度過了一些時間，並與其他控制委員會一起度過了一些時間。

It's 5 years since cannabis is now legal in Canada. And what we're seeing is tremendous amount of consumers moving over to the legal market, tremendous amount of consumers partaking in the recreational. You heard us say we sold 20 million pre-rolls and where that is going. We expect to sell 80 million pre-rolls a year. You see lots of consolidation at retail, much more awareness out there.

大麻在加拿大合法化已經五年了。我們看到大量消費者轉向合法市場，大量消費者參與娛樂活動。您聽說過我們售出了 2000 萬張預卷，以及未來的發展方向。我們預計每年售出 8000 萬張預卷。你會看到零售業有很多整合，人們的意識也提高了。

Listen, there is still lots of problems in the Canadian market. But I got to tell you, for the first time, I'm starting to feel really optimistic about the opportunities there.

聽著，加拿大市場仍然存在著許多問題。但我必須告訴你，我第一次開始對那裡的機會感到非常樂觀。

Blair, do you want to add anything to it?

布萊爾，你想補充什麼嗎？

Yes. So, to your question, Matt, on the opportunity on the M&A side from an asset standpoint, I think if you look at our portfolio, we're very well rounded. I'd say maybe we've got a small gap on the edible side. But when you look at the rest of our portfolio, we are very well represented. So there's not a lot of assets out there that we would look to acquire over the next period of time.

是的。所以，對於你的問題，馬特，從資產的角度來看，併購方面的機會，我認為如果你看看我們的投資組合，我們非常全面。我想說也許我們在可食用的一面有一個小差距。但當你看看我們的其他產品組合時，你會發現我們的代表性非常好。因此，我們希望在接下來的一段時間內收購的資產並不多。

We do have -- as Irwin alluded to, all of our facilities are starting to really get up there in utilization, and we have availability of some capacity to be able to bring edibles into that. So we'll look to do that over this next period of time. So, at least from a Canadian perspective, I'm happy with the growth we're seeing in the market. I'm happy with where the industry is, you know not without its challenges, as Irwin said. But from an M&A standpoint, we don't see a lot of opportunity there.

我們確實有——正如歐文所提到的那樣，我們所有的設施都開始真正提高利用率，並且我們有一定的能力可以將食物帶入其中。因此，我們將在接下來的一段時間內努力做到這一點。因此，至少從加拿大的角度來看，我對我們在市場上看到的成長感到滿意。正如歐文所說，我對這個行業的現狀感到滿意，你知道它面臨著挑戰​​。但從併購的角度來看，我們並沒有看到太多機會。

Before I pass it to Denise about Europe, we're really excited about the beverage category. If you come back and think one of the biggest opportunities, and you walk into cannabis stores today, there's a small fridge in there with drinks at $7, $8. But think about how the beverage category within the world today, you look at the craft beer category, $280 billion and you come back and think this is a whole new category and the opportunities there.

在我向丹尼斯傳遞有關歐洲的信息之前，我們對飲料類別感到非常興奮。如果你回來後想到最大的機會之一，然後你今天走進大麻商店，那裡有一個小冰箱，裡面有 7 美元、8 美元的飲料。但想想當今世界的飲料類別，你看看價值 2800 億美元的精釀啤酒類別，然後你回過頭來，會認為這是一個全新的類別以及那裡的機會。

We have 2 facilities. We're the leader in the beverage business. And everybody wants to figure out what's the right way to roll this out and merchandise it. And my hope one day that you would be able to go into a beer store, a convenience store or go into a bar and it would be on tap. So that, to us, is one of the biggest opportunities. Internationally, Medical has tremendous opportunities, Denise?

我們有 2 個設施。我們是飲料業的領導者。每個人都想找出推出和銷售該產品的正確方法。我希望有一天你走進啤酒館、便利商店或酒吧，就能買到桶裝啤酒。因此，對我們來說，這是最大的機會之一。在國際上，醫療有巨大的機會，丹尼斯？

Thanks, Irwin. Yes, so internationally, if you look at Europe first, really the only cannabis that one get today is a medical cannabis market, and Germany still remains the largest market within Europe. However, we do see some countries that are coming online and developing very quickly. The regulations are still -- as we all know, are still really shaping out. We are looking to see medical cannabis in Germany become de-scheduled as a narcotic and become a regular medicine that can be prescribed.

謝謝，歐文。是的，所以在國際上，如果你先看看歐洲，實際上今天唯一的大麻是醫用大麻市場，而德國仍然是歐洲最大的市場。然而，我們確實看到一些國家正在上線並且發展非常迅速。眾所周知，這些法規仍在製定中。我們希望看到德國醫用大麻不再被列為麻醉藥品，而是成為可以開處方的常規藥物。

And so, if we look at our business, we really see like our business is very nascent today and is still developing. And so, we are evaluating where do we have gaps in capabilities and where can potentially M&A fill in those gaps. And we've -- so we are very much looking to see what is out there, what can we do to make our business have full capabilities, whether it's technology, whether it's online platforms, et cetera.

因此，如果我們審視我們的業務，我們確實會發現我們的業務目前還處於起步階段，並且仍在發展中。因此，我們正在評估我們在哪些方面存在能力差距，以及哪些方面可以透過併購來填補這些差距。我們非常希望了解現有的情況，我們可以做些什麼來使我們的業務擁有完整的能力，無論是技術，還是線上平台，等等。

And we are looking at the same thing in Australia New Zealand, whether it's looking at clinics, et cetera. And then also talking about potentially looking at how beverage alcohol might play a role in Europe as well. So, we are very much focused in seeing what might be available to round out our capabilities and make a more fulsome business.

我們正在澳洲和紐西蘭關注同樣的事情，無論是在診所還是其他地方。然後也討論了可能研究酒精飲料如何在歐洲發揮作用。因此，我們非常關注可以利用什麼來完善我們的能力並打造更充實的業務。

And to round it out, the third part of your question in regards to beverage alcohol, listen, we own some great brands today. And Ty and I are on the road to start visiting them after today and how we start integrating them and where we will be looking to sell them in each state and each Tri-State, we will figure that out.

最後，你的問題的第三部分是關於飲料酒精的，聽著，我們今天擁有一些很棒的品牌。泰和我將在今天之後開始拜訪他們，以及我們如何開始整合它們，以及我們將在每個州和每個三個州的哪裡銷售它們，我們將弄清楚這一點。

But if you come back and look what the team has done with Montauk in a short period of time and growing that 9% and seeing SweetWater growing 4%, we're excited about Blue Point. We're excited about Breckenridge brewery. We're excited about 10 Barrel and the rest that come along with this.

但如果你回來看看團隊在短時間內對 Montauk 所做的事情，增長了 9%，並看到 SweetWater 增長了 4%，我們對 Blue Point 感到興奮。我們對布雷肯里奇啤酒廠感到興奮。我們對 10 Barrel 以及隨之而來的其他產品感到興奮。

So also, there's a lot of good things happening in -- with Breckenridge Distillery as this ultimately gets together with Breckenridge brewery as we continue to leap on the Bourbon craze and get new and new distribution. And let's not forget our Manitoba Harvest business, where we have about a 52% share in a category that's developing a lot of new products and we're getting a lot of new distribution.

同樣，布雷肯里奇釀酒廠也發生了很多好事，因為隨著我們繼續掀起波本威士忌熱潮並獲得新的分銷渠道，布雷肯里奇釀酒廠最終與布雷肯里奇啤酒廠走到了一起。我們不要忘記我們的馬尼托巴收穫業務，我們在這個類別中擁有大約 52% 的份額，該類別正在開發大量新產品，並且我們正在獲得大量新分銷。

And I think the big thing is there, I mean, we're in supermarkets, we're in Costco's, we're in the Walmarts. So we have avenues if we decide to bring other products in and we're selling our beer products in those today. So we have an avenue of retail if we bring other wellness foods in there to make sure we -- they're accompanied by.

我認為最重要的是，我們在超市，我們在好市多，我們在沃爾瑪。因此，如果我們決定引入其他產品，我們就有途徑，並且我們今天就用這些產品銷售我們的啤酒產品。因此，如果我們將其他健康食品帶到那裡，我們就有了一條零售途徑，以確保我們 - 它們伴隨著。

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

我們的下一個問題來自 ATB Capital Markets 的 Frederico Gomes。

Just on your capacity utilization, I know that you addressed this a little bit, but maybe could you provide a bit more color on where you currently stand in terms of utilization in your cultivation and manufacturing facilities in Canada? And with your organic growth initiatives, where do you see that utilization ending over the remainder of the fiscal year and sort of the potential benefit that you could see in your margins as a result of that?

就您的產能利用率而言，我知道您已經解決了這個問題，但也許您可以提供更多關於您目前在加拿大的種植和製造設施利用率方面的情況嗎？透過您的自然成長計劃，您認為本財年剩餘時間內的利用率會在哪裡結束，以及您可能因此在利潤中看到的潛在收益？

Thanks for the question. Yes, from a capacity and utilization, it's probably easiest for me to go across the facilities really quickly. But if you look at Masson, we're in the middle of the conversion of B9, which is 80% of that facility to vegetables, and that's on track to be fully utilized by January. And then the remaining 20% will service the Quebec market with locally grown cannabis for Quebec. So we're a 100% utilized in Masson.

謝謝你的提問。是的，從容量和使用率來看，對我來說快速瀏覽這些設施可能是最簡單的。但如果你看看 Masson，你會發現我們正處於 B9 的改造過程中，該設施的 80% 都用於種植蔬菜，並且預計在 1 月之前充分利用。然後剩下的 20% 將為魁北克市場提供魁北克當地種植的大麻。所以我們在 Masson 的利用率是 100%。

At the RedeCan facility, we'll be 100% utilized. We have an outdoor grow in Cayuga, which is currently at 50% utilized, but our plan is to grow that through pre-rolls to be up to a 100% utilized by the end of the year. And that'll be very close to the end of the year because May is when we plant the outdoor grow.

在 RedeCan 工廠，我們將 100% 利用率。我們在卡尤加有一個戶外種植園，目前利用率為 50%，但我們的計劃是透過預卷將其種植到年底，利用率達到 100%。那將非常接近年底，因為五月是我們種植戶外植物的時候。

And then from a Leamington standpoint, we'll be 100% utilized in Aphria Diamond, and we do have some opportunities that will currently fill up our Aphria One facility by the end of the year. And then Broken Coast has always been fully utilized.

然後從利明頓的角度來看，我們 Aphria Diamond 的利用率將達到 100%，並且我們確實有一些機會，目前將在今年年底填滿我們的 Aphria One 設施。然後破碎海岸一直被充分利用。

So, we feel very good about capacity and utilization overall. I definitely think that will help the margins on the balance of the year. I don't have a crystal ball on that front. But certainly, as Irwin talked about, as we move all of our packaging from the acquisitions into Leamington, we're going to see great synergies on that side.

因此，我們對整體產能和利用率感覺非常好。我絕對認為這將有助於提高今年剩餘時間的利潤率。我在這方面沒有水晶球。但當然，正如歐文所說，當我們將所有包裝從收購中轉移到利明頓時，我們將看到這方面的巨大協同效應。

The London facility on beverages will be close to 90% utilized with the transition of Truss. So, definitely, we're going to be able to allocate the overhead of those facilities across more volume throughout the end of the year.

隨著 Truss 的過渡，倫敦飲料工廠的利用率將接近 90%。因此，毫無疑問，我們將能夠在今年年底將這些設施的管理費用分配到更多的數量。

And I think not only utilization, we're vertically integrated here. So we can grow flower, we can -- you know oil. We can -- we're probably the largest pre-roll producer today in the Canadian market. We're the largest producer of cans. We can produce any type of edible. So with that, and what we're doing basically today is producing for ourselves, we are doing some wholesale.

我認為不僅是利用率，我們在這裡還進行了垂直整合。所以我們可以種植花卉，我們可以——你知道石油。我們可以——我們可能是當今加拿大市場上最大的前貼片製作商。我們是最大的罐頭生產商。我們可以生產任何類型的食品。因此，我們今天所做的基本上是為自己生產，我們正在做一些批發。

So not only are we -- from a utilization standpoint, we're vertically integrated to support our 12 brands out there. And the big thing here is new product development. And that's what we've realized is in the Canadian market, consumers are looking for new products all the time. And whether the potency of the product, it's infused products, the genetics of the product; the big thing what we have to work on is how we develop brands and get consumers used to buying brands, and that's one of the big opportunities, and that's one of the things we need to work on.

因此，從利用率的角度來看，我們不僅進行垂直整合，還支持我們的 12 個品牌。這裡最重要的是新產品開發。這就是我們意識到在加拿大市場，消費者一直在尋找新產品。以及產品的效力、注入的產品、產品的基因；我們要做的最重要的事情是如何開發品牌並讓消費者習慣購買品牌，這是巨大的機會之一，也是我們需要努力的事情之一。

Our next question comes from the line of Michael Lavery with Piper Sandler.

我們的下一個問題來自邁克爾·拉弗里 (Michael Lavery) 和派珀·桑德勒 (Piper Sandler) 的對話。

Just wanted to come back to the 8 new brands that you've just closed and purchased. And at least on the retail side where we can see some data, those have been declining for the last 2 or so years. I guess maybe first, is that the full picture? Is there a more holistic view that's got better momentum.

只是想回到您剛關閉併購買的 8 個新品牌。至少在零售方面，我們可以看到一些數據，這些數據在過去兩年左右一直在下降。我想也許首先，這是完整的圖片嗎？是否有一種更全面的觀點能夠獲得更好的動力？

But either way, then what does it really take to get that to -- you've said how important organic growth is, obviously, it's not already in hand. So, what does it take to really get those going? And how much more spending? Is there a distribution upside? They've all been around for quite some time. How do you just think about driving growth there?

但無論哪種方式，那麼真正需要什麼才能實現這一目標——你已經說過有機成長有多重要，顯然，它還沒有到來。那麼，要真正實現這些目標需要什麼？還有多少開支？分配有上升空間嗎？他們都已經存在相當長一段時間了。您如何看待推動那裡的成長？

Well, I'm going to turn it over to Ty in a second. What goes down got to ultimately go up, right? So I think that's what's important here. And yes, they're declining, and that's what gave us the opportunity. I think from some standpoint, did they get the attention that was needed? And I think it goes back and shows what we've done with SweetWater and what was done with Montauk, what's done with Green Flash and Nelson. And the team knows how to do it.

好吧，我馬上就把它交給 Ty。下跌的東西最終一定會上漲，對嗎？所以我認為這才是重要的。是的，他們正在下降，這給了我們機會。我認為從某些角度來看，他們是否得到了所需的關注？我認為它可以回溯並展示我們對 SweetWater 所做的事情、對 Montauk 所做的事情、對 Green Flash 和 Nelson 所做的事情。而團隊知道如何做。

Ty, you want to add something to that?

Ty，你想添加一些東西嗎？

Yes. Yes, Michael, I'd say I'm not real sure you're seeing the full picture when you look at it at a total brand level. When you dive a little bit deeper and you get into the SKU level, we're really, really excited. You see brands like 10 Barrel, their pub beer which is growing. You see Avalanche growing share in Colorado. You see what Big Ballard, part of the Redhook family and their SKUs and how they're getting into new segments is really, really exciting.

是的。是的，邁克爾，我想說，當您從整體品牌層面來看時，我不確定您是否看到了整體情況。當您更深入地了解 SKU 級別時，我們真的非常非常興奮。你會看到像 10 Barrel 這樣的品牌，他們的酒吧啤酒正在不斷增長。您會看到 Avalanche 在科羅拉多州的份額不斷增長。您將看到 Redhook 家族的 Big Ballard 及其 SKU 以及他們如何進入新的細分市場，這真的非常非常令人興奮。

So, yes, I'm not real sure you're seeing the full picture. We've built out a really national account team. And as you know, chains play an integral part in building distribution and building brands. And we've had some really good conversations with big retailers around the U.S. and they're excited about the brands. Our distributors are extremely excited about us coming over and bringing energy and investments and focus.

所以，是的，我不確定你是否看到了完整的情況。我們已經建立了一支真正的全國客戶團隊。如您所知，連鎖店在建立分銷和打造品牌方面發揮著不可或缺的作用。我們與美國各地的大型零售商進行了一些非常好的對話，他們對這些品牌感到興奮。我們的經銷商對我們的到來並帶來活力、投資和關注感到非常興奮。

And just like we've done with Montauk and SweetWater, we are going to build out a plan to drive quality distribution, build the brands, and really lean in on the SKUs that are driving some of these brands, which are exciting.

就像我們對 Montauk 和 SweetWater 所做的那樣，我們將製定一項計劃來推動優質分銷、打造品牌，並真正依靠推動其中一些品牌的 SKU，這令人興奮。

And I think the big thing is it's not -- it's these brands, but the whole craft beer industry and what we can do, and we're working with BCG on a whole overall strategy here on the brand, the positioning, who the consumers are of craft beer, where the non-alcohol -- where from an ingredient standpoint, nutritionals on the beer in regards to, can versus bottle versus other types of packaging, what's sold in a brew pub, what's sold on-premise, what's sold in convenience stores, which are the biggest sellers of craft beer.

我認為最重要的不是這些品牌，而是整個精釀啤酒產業以及我們能做的事情，我們正在與 BCG 合作制定關於品牌、定位、消費者的整體策略是精釀啤酒，其中不含酒精——從成分的角度來看，啤酒的營養成分，罐裝啤酒與瓶裝啤酒與其他類型的包裝，啤酒酒吧銷售什麼，內部銷售什麼，銷售什麼便利店是精釀啤酒銷量最大的地方。

So there's a lot we're studying right now. There's a lot we're doing in data and research and working with BCG to bring that together. But we're pretty excited about the opportunity in the craft beer business. And we're pretty excited. Listen, we're -- even though they're declining, we're now the fifth largest craft brewer. And I think the evolution of big beer versus craft beer is changing dramatically too.

所以我們現在正在研究很多事情。我們在數據和研究方面做了很多工作，並與 BCG 合作將其整合在一起。但我們對精釀啤酒業務的機會感到非常興奮。我們非常興奮。聽著，我們——儘管它們正在衰退，但我們現在是第五大精釀啤酒製造商。我認為大啤酒與精釀啤酒的演變也正在發生巨大變化。

Okay. And can I just follow up on the cucumber farming, not a sort of a piece of the portfolio I had anticipated maybe initially. Can you just help us understand maybe why that's interesting to you and what the margins and growth might look like for that?

好的。我可以跟進黃瓜種植嗎，而不是我最初預期的投資組合的一部分。您能否幫助我們了解為什麼您對此感興趣以及其利潤和成長可能會是什麼樣子？

Number one, listen, we got $1.5 million facility, if we went to sell it today, what the values in that you're getting for in cannabis facilities. We think and we've been asked by multiple retailers in Quebec, there is a major shortage and they want vegetables grown in Quebec. There is better margin there than just keeping the place dark or selling cannabis that you can't sell. And we'll see what happens.

第一，聽著，我們得到了 150 萬美元的設施，如果我們今天去出售它，那麼您在大麻設施中獲得的價值是多少。我們認為，魁北克省的多家零售商也曾向我們詢問過，蔬菜嚴重短缺，他們想要魁北克省種植的蔬菜。那裡的利潤比僅僅讓這個地方保持黑暗或出售你無法出售的大麻更好。我們會看看會發生什麼。

Ultimately, maybe one day we could sell it as a vegetable farm to someone else that wants it. But right now, with minimal investment, that facility, it has probably a couple of hundred million dollars of investment in it. And there is big demand for fruits, vegetables and that in the Quebec market. The other thing is, which we're going to do there is grow cannabis just for the Quebec market where they want cannabis grown in their province for their retailers. So, it is a profitable business. So, that's -- I want to be very clear on that.

最終，也許有一天我們可以把它作為一個蔬菜農場賣給其他想要它的人。但現在，以最小的投資，該設施可能需要數億美元的投資。魁北克市場對水果、蔬菜的需求量很大。另一件事是，我們要做的就是為魁北克市場種植大麻，他們希望在他們的省份為零售商種植大麻。所以，這是一項有利可圖的業務。所以，我想澄清這一點。

Our next question comes from the line of Bill Kirk with ROTH MKM.

我們的下一個問題來自 Bill Kirk 和 ROTH MKM 的對話。

Irwin, you mentioned expanded distribution at Whole Foods in your prepared remarks. And given your incredibly strong history with them, could you maybe talk about how your background helps with this particular account? And I guess, what does your experience tell you about the trajectory of brands into other retailers once you find success at Whole Foods?

歐文，您在準備好的發言中提到了全食超市的擴大經銷。鑑於您與他們的歷史非常悠久，您能否談談您的背景對這個特定客戶有何幫助？我想，一旦你在全食超市取得成功，你的經驗告訴你，品牌進入其他零售商的軌跡是什麼？

Back in the day, it's interesting, and that's a great question because other retailers used to go to Whole Foods and see what was new, what was natural and what was organic and what we're selling because everybody wanted Whole Foods customers.

回到過去，這很有趣，這是一個很好的問題，因為其他零售商過去常常去全食超市看看什麼是新的、什麼是天然的、什麼是有機的以及我們正在銷售什麼，因為每個人都想要全食超市的客戶。

I think that's changed quite a bit today. But again, Whole Foods is an important customer for us, on our SweetWater, on our Montauk, on our Blue Point and some of our other products. Also a very important customer for us on Manitoba Harvest.

我認為今天情況發生了很大變化。但再次強調，全食超市是我們的 SweetWater、蒙托克、藍點和其他一些產品的重要客戶。也是我們曼尼托巴豐收公司非常重要的客戶。

And again, I think what Whole Foods is doing where they have their 365, but they want brands and that's what consumers are looking for. But I will tell you whether it's Kroger, Albertsons, H-E-B, they're important customers to us. And it's interesting what they're saying when we've introduced them to the new Gummies product or Montauk Pumpkin, what that is doing.

再說一遍，我認為 Whole Foods 在擁有 365 的情況下正在做什麼，但他們想要品牌，而這正是消費者所尋找的。但我會告訴你，無論是 Kroger、Albertsons、H-E-B，他們都是我們的重要客戶。有趣的是，當我們向他們介紹新的軟糖產品或蒙托克南瓜時，他們所說的話以及它的作用。

So, what retailers are doing out there, yes, they're looking at what's selling in Whole Foods and is it a beer kombucha combined, et cetera, and some of the new innovation. But my experience before is, retailers went to Whole Foods and see what was selling. Not as probably as much anymore, but retailers today in the craft beer industry want new innovation out there because if you look at craft beer, there's a lot of IPAs. There's a lot of other beers out there. But what's new and unique and it's just not an IPA out there. And I think that's what we're trying to bring to the party.

那麼，零售商正在做什麼，是的，他們正在研究全食超市銷售的產品，是否是啤酒康普茶組合等，以及一些新的創新。但我之前的經驗是，零售商會去全食超市看看要賣什麼。可能不再那麼重要了，但如今精釀啤酒行業的零售商希望有新的創新，因為如果你看看精釀啤酒，你會發現有很多 IPA。那裡還有很多其他啤酒。但它的新穎性和獨特性並不是市面上的 IPA。我認為這就是我們想要為聚會帶來的東西。

Excellent. And then, Carl, you mentioned that 4Q buy-in helps beer. Does that load in explain the sequential difference for beverages in 1Q from that 4Q about $8 million or so? And should we think about that before the ABI brands coming over, should we think about that $24 million in beverages 1Q as like a pure volume consumption number no load in, no destock, that's more of a volume consumed type number?

出色的。然後，卡爾，你提到 4Q 買入對啤酒有幫助。這一負載是否可以解釋第一季飲料與第四季約 800 萬美元左右的連續差異？我們是否應該考慮一下，在ABI 品牌到來之前，我們是否應該將第一季2400 萬美元的飲料視為一個純粹的消費量數字，沒有加載，沒有去庫存，這更像是一個消費量類型的數字？

So I'll let Ty talk about the volume consumed, but on the profitability side and the margin side and then ultimately down to EBITDA. Yes, that is a portion of the decline that is going on in that space is just a decrease in volume because you don't have that many buy-ins.

所以我會讓 Ty 談談消耗的數量，但首先是獲利能力和利潤率，最後是 EBITDA。是的，這是該領域正在發生的下降的一部分，只是交易量的減少，因為你沒有那麼多的買入。

Just let me jump on something there. I was just e-mailed by one of our employees some of our hemp products that were in the Whole Foods, I won't mention the other retailer, but they saw them in Whole Foods, and we picked up 2 other retailers because they were in Whole Foods. And sometimes Whole Foods is one of our best showrooms. So, that is something that happened just to answer your question on that.

讓我跳到那裡的東西。我們的一位員工剛剛向我發送了電子郵件，介紹了全食超市中的一些大麻產品，我不會提及其他零售商，但他們在全食超市中看到了它們，我們選擇了另外2 家零售商，因為他們是在全食超市。有時全食超市是我們最好的陳列室之一。所以，這就是為了回答你的問題而發生的事情。

And on the volume piece, Phil, I'd just say that consumption -- seasonality drives consumption. So I wouldn't use the word load in. Consumption peaks over times over quarters. And like Carl said earlier, there is a higher seasonality and consumption of beer in our Q4, which is the start of the summer. And as we take on these new brands as we look into our Q2, we expect to see kind of organic consumption to be in line with what everything else is doing.

關於數量，菲爾，我只想說消費——季節性推動了消費。所以我不會使用「負載」這個詞。正如卡爾之前所說，第四季是夏季的開始，啤酒的季節性和消費量較高。當我們在第二季研究這些新品牌時，我們預期有機消費將與其他所有行為保持一致。

Our next question comes from the line of John Zamparo with CIBC.

我們的下一個問題來自 CIBC 的 John Zamparo。

My question is on the regulatory side, and specifically if you do get the DEA following the HHS recommendation, what does that change for Tilray? Does it adjust your M&A strategy at all or would you need to see additional developments or clarity from different departments?

我的問題是在監管方面，具體來說，如果您確實按照 HHS 的建議獲得 DEA，這會對 Tilray 產生什麼變化？它是否會調整您的併購策略，或者您是否需要看到不同部門的額外進度或清晰度？

So, I think I've been very clear in regards to classification here. Listen, I'd love to see it happen and I've been very clear. It does not affect us day 1. But what it does, it helps get some confusion out of the market. The way cannabis is classified today is the same as heroin, the same as other drugs out there and it's absolutely not.

所以，我想我這裡的分類已經非常清楚了。聽著，我很樂意看到它發生，而且我已經說得很清楚了。它不會影響我們的第一天。今天大麻的分類方式與海洛因相同，與其他藥物相同，但絕對不是。

Number two, I think from a medical standpoint, there are so many applications for it and to legalize it from a medical standpoint would be something very important. There is so much confusion out there on legalization and customers want it. I mean, basically, it is legalized without being legalized because everywhere you walk, whether it's New York, California, no matter what state you're in, cannabis is being utilized.

第二，我認為從醫學的角度來看，它有很多應用，從醫學的角度將其合法化將是非常重要的事情。關於合法化存在著許多混亂，而客戶卻想要它。我的意思是，基本上，它是合法化的而不是合法化的，因為無論你走到哪裡，無論是紐約、加利福尼亞，無論你在哪個州，大麻都在被利用。

So, we might as well do something with it, collect the tax dollars and ultimately get the regulatory in place where you're getting products out there that go through regulatory that are not cut with other drugs or other ingredients out there that are not safe.

因此，我們不妨用它做點什麼，收取稅款，並最終制定監管規定，讓你生產的產品經過監管，不會與其他不安全的藥物或其他成分一起被削減。

In regards to what ultimately the opportunities are for Tilray, listen, if one day, and again, this is hope; no reason to believe if we could grow it in Canada and ship it into U.S. is an opportunity for us. We have a big medical business in Europe. We have a medical business in Canada, which ultimately would get us into the business here in the U.S.

關於 Tilray 最終的機會是什麼，請聽著，如果有一天，再一次，這就是希望；沒有理由相信我們是否可以在加拿大種植並將其運送到美國對我們來說是一個機會。我們在歐洲擁有龐大的醫療業務。我們在加拿大有一家醫療業務，最終將使我們進入美國的業務。

So I think, first, there is ultimately no benefit to Tilray. I don't think anything is going to happen here for a little while for over the next 2 years anyway, but it would basically be very, very, very good for the cannabis industry.

所以我認為，首先，Tilray 最終沒有任何好處。無論如何，我認為在接下來的兩年內不會發生任何事情，但這對大麻產業來說基本上是非常、非常、非常好的。

Thank you. That concludes our analyst questions. We'll now proceed with questions submitted by retail stockholders on the Say Technologies platform. The question reads, why should we keep investing in Tilray?

謝謝。我們的分析師問題到此結束。我們現在將繼續處理散戶股東在 Say Technologies 平台上提交的問題。問題是，我們為什麼要繼續投資 Tilray？

Listen, again, I hope by our results today and some of the things that we're doing that, number one, investors believe in the management team and believe in our strategy. Some don't believe in our strategy, but I will tell you, we have a defined strategy. We have a structured strategy with a lot of process and a lot of levers there that we're ultimately pulling to have a structured strategy.

再次聽著，我希望透過我們今天的業績和我們正在做的一些事情，第一，投資者相信管理團隊並相信我們的策略。有些人不相信我們的策略，但我會告訴你，我們有明確的策略。我們有一個結構化的策略，其中有很多流程和很多槓桿，我們最終會利用它們來制定結構化的策略。

We are, secondly, a very diversified business, but ultimately, how do they all come together under one common denominator. We're not just a cluster of a bunch of products, brands and categories. And upon legalization, we have multiple brands that can convert to cannabis. Ultimately, we have tremendous amount of grow. We have tremendous amount of production today with our beer and our spirits business. We are one of the only ones with 2 cannabis growth facilities in Europe, where we have a great medical platform. So we're different than most other cannabis companies. We're different than most other craft beer businesses. We're different than any other healthier food business with our hemp Manitoba Harvest.

其次，我們是一家非常多元化的企業，但最終，它們如何聚集在一個共同點下。我們不僅僅是一堆產品、品牌和類別的集合。合法化後，我們有多個可以轉換為大麻的品牌。最終，我們獲得了巨大的成長。如今，我們的啤酒和烈酒業務產量龐大。我們是歐洲僅有的擁有 2 個大麻種植設施的公司之一，在那裡我們擁有出色的醫療平台。所以我們與大多數其他大麻公司不同。我們與大多數其他精釀啤酒企業不同。我們的大麻馬尼托巴收穫不同於任何其他健康食品企業。

So we're absolutely different. We're a big believer in building brands, brand equity, brand equity, brand equity, and there's a lot of work we have to do on our brands in Canada and make consumers familiar with our brands. Again, cannabis has only been there for 5 years. And, again, it's educating the consumers on the brands.

所以我們完全不同。我們堅信建立品牌、品牌資產、品牌資產、品牌資產，我們在加拿大的品牌方面還有很多工作要做，讓消費者熟悉我們的品牌。再說一次，大麻的出現才五年時間。而且，它再次對消費者進行品牌教育。

And listen, it's hard to build brands when you're not legally allowed to advertise in the Canadian market to consumers, but we have to do that. Number two, we got some great brands in regards to beer. We got great brands in regards to Breckenridge bourbon and Manitoba Harvest. And we have a really, really strong relationships with doctors and distributors in the European market with regards to our medical business.

聽著，當法律不允許你在加拿大市場向消費者做廣告時，很難建立品牌，但我們必須這麼做。第二，我們有一些很棒的啤酒品牌。我們在布雷肯里奇波本威士忌和馬尼托巴豐收方面擁有出色的品牌。在我們的醫療業務方面，我們與歐洲市場的醫生和經銷商有著非常非常牢固的關係。

Tilray Pharma which was CC Pharma, is a distributor that distributes into 13,000 drug stores. We're looking to convert that business and working with other distributors throughout Europe on how we increase margins. Just think about it, that's a $300 million business, and every margin dollar that we increase there is a major contribution to our bottom line. So, with that, we have a strategy. We are about making money and managing our balance sheet.

Tilray Pharma（原為 CC Pharma）是一家經銷商，向 13,000 家藥局銷售產品。我們正在尋求轉變該業務，並與整個歐洲的其他分銷商合作，以提高利潤。想想看，這是一項價值 3 億美元的業務，我們增加的每一美元利潤都對我們的利潤做出了重大貢獻。因此，我們有了一個策略。我們的目的是賺錢和管理我們的資產負債表。

Will it take some time to come together? It absolutely has been. But I'll tell you, the components are there, and I think that's what's different and unique, and that's why I hope our investors stay with us. And those that are thank you very much.

需要一些時間才能走在一起嗎？絕對是這樣。但我會告訴你，組件就在那裡，我認為這就是不同和獨特的，這就是為什麼我希望我們的投資者留在我們身邊。非常感謝你們。

That is the questions for today. I want to thank all that have joined the call, all that have gone online to listen to us. Listen, I can reassure you this here. The cannabis industry is a tough industry. The beer industry is a tough industry. But there's no business, there's no industry out there that's not tough. But what's important today is that you have a team that knows how to deal with the toughness, knows how to deal with the environment. And today, with the acquisition of the Anheuser-Busch businesses, we have close to 2,300 employees around the world that are working hard every day.

這就是今天的問題。我要感謝所有加入通話的人，感謝所有上網聆聽我們講話的人。聽著，我可以在這裡向你保證。大麻產業是一個艱難的產業。啤酒業是一個艱難的行業。但沒有哪個生意、哪個產業是不艱難的。但今天重要的是，你擁有一支知道如何應對困難、如何應對環境的團隊。如今，隨著對 Anheuser-Busch 業務的收購，我們在全球擁有近 2,300 名員工，他們每天都在努力工作。

And just remember, in 2019, we were a $50 million business, today on the run rate to be close to $1 billion business. We were not diversified, we have a diversified portfolio, we have diversified brands, we have diversified facilities that are out there around the world. The world today is looking for innovation, looking for new products and looking for new things. And again, consumers want cannabis. Consumers want to drink beer for the right reasons. Consumers want to drink bourbon.

請記住，2019 年，我們的營業額為 5,000 萬美元，而如今的營業額接近 10 億美元。我們並不多元化，我們擁有多元化的產品組合，我們擁有多元化的品牌，我們擁有遍布世界各地的多元化設施。當今世界正在尋求創新、尋找新產品、尋找新事物。再說一遍，消費者想要大麻。消費者想要喝啤酒是有正當理由的。消費者想喝波本威士忌。

Consumers want medical cannabis for pain, for anxiety, for sleep, for cancer patients for epilepsy. So there's so many opportunities and we're in the right areas today where consumer demand will continue to move into. With the combination of Aphria, Tilray HEXO, SweetWater, Montauk and the 8 brands that we just acquired from Anheuser-Busch, we've got a great portfolio of a lot of things.

消費者希望醫用大麻能緩解疼痛、緩解焦慮、緩解睡眠、緩解癌症患者的癲癇症狀。因此，機會如此之多，而且我們今天正處於消費者需求將繼續進入的正確領域。透過 Aphria、Tilray HEXO、SweetWater、Montauk 和我們剛從 Anheuser-Busch 收購的 8 個品牌的組合，我們擁有了一個包含很多東西的優秀產品組合。

And with 5 million square feet to grow, we're going to repurpose these. And ultimately, how do we make it work? If not, there's -- ultimately, we can sell these off. So there's plenty of levers to pull within Tilray today. Again, I want to thank everybody for being on the call, listening to us, and look forward to speaking to you again at our next earnings call. Thank you very much.

隨著 500 萬平方英尺的面積增長，我們將重新調整它們的用途。最終，我們如何讓它發揮作用？如果沒有，最終我們可以賣掉這些。因此，今天 Tilray 內部有許多槓桿可以利用。我要再次感謝大家參加電話會議、傾聽我們的講話，並期待在我們的下一次財報電話會議上再次與您交談。非常感謝。

Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。