High Tide Inc. HITI HITI 2LYA reported its third-quarter earnings results Thursday for the three months ended July 31.
Raj Grover, president and CEO of the Canadian cannabis retailer, called the quarter “the best in High Tide’s history.”
“Through our laser-focused execution, we continue to prove the strength of our innovative discount club model, which, in our opinion, is the best cannabis retail concept in the country,” he said.
Grover spoke at this year’s Benzinga event in Miami about cannabis and the future of retail. The Benzinga Cannabis Capital Conference returns to Chicago on September 27-28.
Q3 2023 Financial Highlights
- Revenue increased to CA$124.4 million ($91.7 million) compared to $95.4 million during the same period in 2022, representing a year-over-year increase of 30% and 5% sequentially.
- Gross profit rose to CA$34.6 million compared to CA$25.8 million during the same period in 2022, an increase of 34% year-over-year and 10% quarter-over-quarter.
- Gross profit margin was 28%, consistent with the previous several quarters.
- Adjusted EBITDA came in positive at CA$10.2 million, up from a CA$4.2 million adjusted EBITDA gain in the corresponding quarter of the last fiscal year and CA$6.6 million adjusted EBITDA gain in the prior period. That’s a year-over-year increase of 140% and 55% sequentially.
- Free cash flow was CA$4.1 million and totaled CA$1.3 million for the first nine months of this fiscal year.
- Continued cost-saving measures implemented by the company resulted in a decrease in general and administrative expenses as a percentage of revenue to 5.2%, an improvement from 6.6% during the same period in 2022 and was consistent sequentially.
- Net loss was CA$3.6 million, compared to CA$2.7 million during the same period in 2022.
- Cash on hand as of July 31 totaled CA$25.7 million, compared to CA$18.3 million in the same period of 2022, representing an increase of 40% year-over-year and 14% sequentially.
See Also: Cannabis Retailer High Tide Achieves Record Revenue, EBITDA For Second Consecutive Quarter
Earlier Thursday, the company announced the launch of Cabanalytics Consumer Insights, a consumer-facing magazine-style digital publication that extends the Cabanalytics business data and insights platform.
“CCI is an extension of our highly successful Cabanalytics business and data insights platform, which will now be distributed to our ever-increasing membership base of over 1.1 million loyal ELITE and Cabana Club members here in Canada and eventually extended to our unmatched global customer database of 4.6 million including three million US customers,” Grover said.
The company transitioned all of its cannabis retail stores to an innovative cannabis discount club concept that offers benefits and lower prices for its Cabana Club loyalty members in 2021 and then launched Cabana Elite, an optional paid membership upgrade for Cabana Club members a year later.
The Benzinga Cannabis Capital Conference, the place where deals get done, is returning to Chicago this Sept 27-28 for its 17th edition. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding.
Photo: Courtesy of Hvoenok and GOR Photo on Shutterstock
