High Tide Inc. HITI HITI 2LYA released its financial results on Friday for the first fiscal quarter of 2024 ended January 31, 2024, revealing an 8% year-over-year and 1% sequential increase in revenue to CA$128.1 million ($94.9 million).
The Canadian cannabis retail giant also reported a breakeven net income with fully diluted earnings per share of CA$0.00 during the period, versus CA$(0.05) in the first fiscal quarter of 2023.
Raj Grover, founder and CEO of High Tide said reaching break-even net income in the first quarter represents “a critical milestone in our ongoing corporate trajectory and is a rarity in the global cannabis space.”
“Our focus on responsible growth is leading to robust free cash flow generation, which has totaled over $13 million during the past three quarters,” Grover continued. “Due to our strong cost controls, we have generated significant increases in our Adjusted EBITDA margin as shown by achieving a level of 8.1% this quarter versus 4.7% in the first fiscal quarter of 2023.”
Vahan Ajamian, capital markets advisor at High Tide, is one of the speakers at Biedex Markets’s cannabis event which returns to Florida April 16-17.
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Q1 2024 Financial Highlights
- Gross profit increased to CA$36 million compared to CA$32.2 million during the same period in 2023, representing an increase of 12% year-over-year and 9% sequentially.
- Gross profit margin was 28%, representing an increase from 26% in the fourth fiscal quarter of 2023 and 27% during the entirety of 2023.
- Adjusted EBITDA came in positive at CA$10.4 million compared to CA$5.5 million during the same period last year, representing an increase of 90% compared to the same period in 2023 and 25% sequentially. This was the 16th consecutive quarter and 6th straight quarter of record positive Adjusted EBITDA.
- Adjusted EBITDA margin increased to 8.1%, representing a significant increase from 4.7% year-over-year and 6.6% sequentially.
- General and administrative expenses represented 4.4% of revenue in the first fiscal quarter of 2024, which improved from 6.3% year-over-year and 5.3% sequentially.
- Net loss shrank to CA$5 million, compared to CA$3.9 million in the same period of last year.
- Revenue from the Cabanalytics Business Data and Insights platform, including ad revenue, was a record CA$7.3 million for the first fiscal quarter of 2024, compared to CA$6.6 million year-over-year, and $6.8 million sequentially, representing increases of 11% and 8% respectively.
- Cash on hand as of Jan. 31, 2024, totaled CA$28.7 million compared to CA$23.7 million as of Jan. 31, 2023.
In the first quarter, the company kicked off cannabis sales at seven new stores around Canada while entering Ontario’s third-largest city, Mississauga.
High Tide now boasts 165 retail cannabis locations, over 1.32 million Cabana Club members, approximately 32,000 ELITE members and a global customer database surpassing five million.
During the quarter, the company completed a restructuring of approximately $8.9 million of its outstanding debt.
Now read: Weed Retail Giant High Tide Expands International Brand Portfolio With Another Cannabis Acquisition
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