CALGARY, AB - High Tide Inc. (Nasdaq: NASDAQ:HITI) (TSXV: HITI) (FSE: 2LYA), a prominent player in the cannabis retail space, announced its financial results for the first fiscal quarter of 2024, which ended on January 31, 2024.
The company reported an 8% year-over-year increase in revenue, totaling $128.1 million, and a significant rise in adjusted EBITDA, which reached $10.4 million, marking a 90% increase from the same period last year.
The company's gross profit also saw an uptick, reaching $36.0 million, a 12% increase compared to the first fiscal quarter of 2023. Gross profit margin improved to 28%, up from 27% the previous year. Notably, High Tide achieved breakeven net income with fully diluted earnings per share of $0.00, a stark contrast to the $(0.05) reported in the first fiscal quarter of 2023.
High Tide's adjusted EBITDA margin expanded to 8.1%, which is a substantial improvement from the 4.7% reported year-over-year. This marks the 16th consecutive quarter of positive adjusted EBITDA for the company. Additionally, the company generated $3.6 million in free cash flow during the quarter, despite a reduction in accounts payable and accrued liabilities.
The company's retail market share is also on the rise, with Canna Cabana holding over 19% of the cannabis retail market share in Alberta and 9% in Ontario. Across the five provinces where High Tide operates, the company claims over 10% of the market share in dollars.
High Tide continues to expand its retail footprint, now boasting 165 locations, and has grown its Cabana Club membership to over 1.32 million members. The ELITE paid loyalty program also saw significant growth, with approximately 32,000 members, up 237% year-over-year.
The company's outlook remains positive, with plans to reach a 15% market share in Canada and a target of 300 Canna Cabana locations in the long term. High Tide's strong balance sheet and cost controls have positioned it to capitalize on expansion opportunities, particularly in Ontario.
This report is based on a press release statement from High Tide Inc. and provides a snapshot of the company's financial health and strategic direction. The company will host a webcast and conference call on Monday, March 18, 2024, to discuss these results in further detail.
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