Second-Largest Cannabis Retailer In North America Reports Record Revenue, Adjusted EBITDA In Q1

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."

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See also: Cannabis Retail Giant High Tide Will Distribute Weed Products In Manitoba As North American Footprint Grows

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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