High Tide reported record fiscal third-quarter results as its Canna Cabana retail network continued gaining Canadian market share and its Remexian medical cannabis operation expanded rapidly in Germany.
Revenue increased 33% year over year to a record C$198.8 million and rose 11% sequentially, marking High Tide’s fifth consecutive quarterly revenue record.
Gross profit increased 32% to a record C$52.7 million. Adjusted EBITDA rose 53% to a record C$16.2 million, producing an 8.2% margin, the highest in 12 quarters.
Operating income reached a record C$8.7 million, up 133%, while net income increased to a record C$12.7 million from C$0.8 million a year earlier.
High Tide generated C$7 million of free cash flow and ended the quarter with C$47.1 million of cash and restricted cash.
Canna Cabana operated 232 Canadian stores and held approximately 14% of the cannabis retail market across the provinces where it operates, excluding British Columbia, up from 13% a year earlier.
Cabana Club membership surpassed 2.73 million, up 27%, while paid ELITE membership exceeded 186,000, up 62%. Same-store sales were approximately flat for the quarter overall but turned positive in June and July.
Germany is becoming High Tide’s second significant growth engine. Remexian distributed a record 10.2 tonnes of medical cannabis during the quarter, up 62% year over year and 35% sequentially.
The segment produced record quarterly revenue of C$38.2 million, compared with C$31.6 million in the preceding quarter, at a 26% gross margin.
The results leave High Tide approaching an annualized revenue run rate of approximately C$800 million while continuing to invest in retail expansion and international medical cannabis distribution.
KEY QUOTES:
“Nearly every major financial metric moved in the right direction this quarter, with many reaching the highest levels in our history. We delivered record revenue, record gross profit, record Adjusted EBITDA, record income from operations, record net income and record operating cash flow before working capital.”
“With Canna Cabana strengthening its leadership position in Canada and Remexian scaling rapidly in Germany, we now have two powerful engines driving our business forward.”
Raj Grover, Founder and CEO of High Tide
