The strong performance comes amid High Tide’s ongoing expansion efforts.
High Tide Inc. (NASDAQ: HITI) (TSXV: HITI) reported its third-quarter financial results ending July 31, outpacing analysts’ expectations.
The company posted revenue of C$131.7 million (US$96.9) for the quarter, passing the Yahoo Finance average estimate of US$94.35 million. The new record was a 6% rise from both the previous year and quarter. Net income reached C$800,000, compared with a C$3.6 million loss in the same period last year.
Same-store sales ticked up 1% over the year and 5% sequentially. When calculated daily, same-store sales increased 3% sequentially. High Tide noted that from October 2021 to June 2024, same-store sales at Canna Cabana rose 118%, while the average operator in the five provinces where the company operates has experienced a 21% decline.
“Our numbers continue to drive home the fact that we are a well-managed, innovative company that has grown responsibly while continuing to build value for shareholders,” High Tide’s CEO Raj Grover said in a statement.
In August, the company nabbed a new C$15 million line of credit to support growth initiatives. High Tide still aims to open 20-30 new dispensaries before the end of 2024, but it still maintains it will not overpay for acquisitions.
The company’s Canna Cabana store count reached 183 locations across Canada, adding to market share growth of 12% in provinces where High Tide operates, it said.
Grover said the Cabana Club loyalty program now has eclipsed more than 1.55 million members. He also touted the ELITE paid membership program, which has grown to 57,000 members, a 203% surge over the year and a 30% increase sequentially. It’s the fastest pace of growth since inception, he said.
High Tide had cash and cash equivalents totaling C$35.3 million, up 37% over the year. It’s been free cash flow positive for five consecutive quarters, “having generated approximately C$26 million during this period,” according to the news release.
The retailer said it wants to expand to 300 Canna Cabana locations nationwide and achieve 15% market share in its operating provinces. The retailer is also eyeing international expansion, particularly in Germany, as it “continues to monitor legislative and regulatory developments.”
[[{“value”:”The strong performance comes amid High Tide’s ongoing expansion efforts.
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