Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Cannabis Retailer High Tide Achieves Record Revenue, EBITDA For Second Consecutive Quarter

Published 17/03/2023, 20:00
Updated 17/03/2023, 21:10
© Reuters.  Cannabis Retailer High Tide Achieves Record Revenue, EBITDA For Second Consecutive Quarter

© Reuters. Cannabis Retailer High Tide Achieves Record Revenue, EBITDA For Second Consecutive Quarter

Benzinga - Cannabis retailer High Tide Inc. (NASDAQ: HITI) (TSXV: HITI) (FSE: 2LYA) released first-quarter results Friday, posting a 64% year-over-year revenue increase.

"Our Q1 earnings numbers represent the best quarter ever in High Tide’s history in terms of revenue, adjusted EBITDA, and market share growth. Q1 is now our second consecutive quarter of record revenue and adjusted EBITDA and saw a meaningful improvement in our free cash flow position," said CEO Raj Grover.

HITI Financial Highlights

  • Revenue increased to $118.1 million in the first fiscal quarter of 2023 compared to $72.2 million during the same period in 2022, representing an increase of 64% year-over-year and 9% sequentially.
  • Gross profit increased to $32.2 million in the first fiscal quarter of 2023 compared to $23 million during the same period in 2022, representing an increase of 40% year-over-year and 9% sequentially.
  • The gross profit margin in the three months ended Jan. 31, 2023, was 27%, consistent with the previous three quarters. Gross margins earned in High Tide's brick-and-mortar stores ticked higher sequentiallym the company said.
  • Adjusted EBITDA increased to $5.5 million in the first fiscal quarter of 2023 compared to $3 million during the same period in 2022, representing an increase of 86% year-over-year and 10% sequentially, per the news release.
The company has achieved its 12th consecutive quarter of positive adjusted EBITDA, Grover said, with a fourth consecutive quarter of sequential same-store sales growth, indicating its strength in the market.

The company represents 9% of the Canadian cannabis retail market outside of Quebec, as reported exclusively by Benzinga.

In the first fiscal quarter of 2023, salaries, wages and benefits accounted for 12% of revenue, an improvement from 14% in the same quarter of the previous year and consistent with the previous three quarters.

General and administrative expenses represented 6% of revenue in Q1 2023, an improvement from 8% in Q1 2022 and 7% in the previous quarter, indicating strong cost controls by the company. The sales of Cabanalytics data totaled $6.6 million in Q1 2023, an increase from $4.7 million in the same period last year, with a 3% sequential increase.

During the first fiscal quarter of 2023, same-store sales increased by 52% compared to the same period in 2022, with a sequential increase of 4%, marking six consecutive quarters of same-store sales growth.

The company also reported a 58% increase in the ELITE cannabis paid loyalty program membership, reaching about 9,500 members. As of Jan. 31, the company had $23.7 million in cash on hand.

"We are also pleased to share a shift in our strategy to ensure long-term growth and sustainability, with a goal of becoming free cash flow positive by the end of this calendar year. In contrast with much of the cannabis industry, we’ve remained focused on continuing to strengthen our operations and set attainable growth goals. While we are not abandoning growth through M+A in the medium and long-term, our short-term focus has shifted to attaining free cash flow profitability in the coming months," said Grover.

High Tide aims to become free cash flow positive within this calendar year and remains the highest revenue-generating cannabis company reporting in Canadian dollars. The company has 151 locations, over 975,000 Cabana Club members and a global customer database of over 4.5 million, making it the largest non-franchised cannabis retailer in Canada.

Come meet Grover in person as well as other fascinating leaders in the cannabis industry at the Benzinga Cannabis Capital Conference at Miami Beach’s historic Fontainebleau Hotel in Florida on April 11-12. This is the place to get DEALS DONE, raise money, jumpstart M&A, and meet investors and key partners. Secure your tickets now before prices go up.

Image By El Planteo.

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.