During the last year, there has been much less interest in Canadian cannabis retailers.
We consider High Tide Inc. (Nasdaq: HITI) (TSX Venture: HITI) to be a leading Canadian cannabis retailer. Although the business has reported impressive growth, the stock has been under considerable pressure and we will monitor the trend from here.
2022 was a period of strong growth for High Tide and we expect the business to report strong numbers this year. Some of the most important takeaways from the company’s earnings report include:
- During the quarter, the company generated $118.1 million of revenue which is 64% higher than what was reported in the same period last year.
- Gross profit increased by approx. 40% on a year-over-year basis and by 9% when compared to the prior quarter
- Adjusted EBITDA increased by 86% on a year-over-year basis and by 10% when compared to the prior quarter
- When compared to the prior quarter, High Tide reported that general and administrative expenses represented a smaller percentage of revenue in the quarter.
- During the quarter, Cabanalytics data sales were $6.6 million which is considerably higher than the amount of revenue that it generated in the same period last year
- High Tide has been focused on the rollout of the Canadian cannabis paid loyalty program and reported that membership reached approx. 9,500
- As of January 31st, the Canadian cannabis company reported to have approx. $24 million of cash on hand
Although High Tide has reported impressive growth, the stock has been under considerable pressure. The entire Canadian cannabis retail sector has been under heavy pressure and this is a trend that we are following.
If you are interested in learning more about High Tide, please send an email to email@example.com the subject “High Tide’s Earnings Report” to be added to our distribution list.
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