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High Tide reports increase in retail footprint, revenue

June 13, 2024 | Sarah Clark

High Tide Inc. reports a 5% year-over-year increase in revenue and a 175% year-over-year increase in income in its most recent quarterly report.

The company behind Canada’s largest non-franchised retail cannabis chain brought in $124.3 million in revenue in the three months ending April 30, 2024, up from $118.1 million in the same period in 2023, but down slightly from the $128.1 million in revenue from the first three months of 2024.

High Tide’s net income for the second quarter of 2024 was $171,000, an improvement from a $5,000 loss in the previous quarter and a $1.6 million loss in Q2 2023. The Company is free cash flow positive for the fourth consecutive quarter, ending with a free cash flow of $9.4 million.

High Tide attributes its 5% year-over-year growth in revenue largely to the continued increase in cannabis stores under its control, as well as growth in same-store sales. This growth is partially offset by the increase/decrease in data analytics and e-commerce revenues. The company operated 168 cannabis stores in the second quarter of 2024, primarily under its Canna Cabana brand.

Revenue from sales of cannabis products in Q2 2024 was $108 million, another $7.3 million was from consumption accessories, and just under $9 million was from its data analytics service “Cabanalytics,” as well as advertising and “other revenue.”

The Cabanalytics Business Data and Insights Platform is billed as giving subscribers access to High Tide’s monthly report of anonymized consumer purchase data with a stated goal of helping retailers with “forecasting and planning their future product decisions and implementing appropriate marketing initiatives.”

High Tide’s CEO, Raj Grover, says the company still holds its position as the highest revenue-generating cannabis company reporting in Canadian dollars.

“I am thrilled to report that in an environment where many cannabis companies, including some of our retail competitors, have been forced to seek bankruptcy protection, our team has been able to deliver positive net income in Q2, while also generating record-breaking free cash flow. In fact, over the past four quarters, we have generated $22.7 million in free cash flow, fueling our strong organic growth. We accomplished this despite Q2 being a seasonally slower quarter with two fewer days, as we tightly managed our G&A while also rapidly growing our store count and increasing our Canadian retail market share to 10.9%.”