High Tide Inc., a leading retail-focused enterprise specializing in cannabis consumption, has reported a record-breaking third quarter (Q3) for the fiscal year ending July 31, 2023. The company credits its robust financial results to its innovative discount club model and effective cost-control measures. High Tide’s key accomplishments this quarter include achieving positive free cash flow ahead of schedule and demonstrating consistent same-store sales growth for the eighth straight quarter.
Positive cash flow and impressive revenue growth
High Tide exceeded expectations by generating a positive free cash flow of $4.1 million in Q3, well before its initial goal of December 2023. This accomplishment strongly indicates the company’s ability to drive profitability through sound operational strategies. The Company’s revenue for Q3 increased by 30% year-over-year (YoY) to reach $124.4 million, up from the same period in 2022.
In addition to excellent top-line results, High Tide also saw a significant increase in gross profit, reaching $34.6 million in Q3, a YoY improvement of 34%. Gross profit margin remained steady at 28%. Meanwhile, adjusted EBITDA experienced a skyrocketing 140% YoY jump, with figures reaching $10.2 million in Q3. Notably, this marks the company’s fourteenth consecutive quarter of positive adjusted EBITDA.
Same-store sales growth on the rise for eight consecutive quarters
High Tide continues to excel in same-store sales growth, boasting a remarkable 19% increase compared to the previous year and an 8% sequential increase. Furthermore, daily same-store sales calculations reveal a 5% improvement, marking this metric’s eight consecutive quarters of growth. The company attributes these successes to its customer-centric approach, strategic store locations, and diverse product offerings.
Being the largest non-franchised cannabis retailer in Canada, High Tide now operates 156 stores across the country and has amassed a global customer database exceeding 4.6 million. High Tide also maintains a Canadian cannabis retail market share, excluding Quebec at 9.5%, demonstrating organic business growth.
Membership programs flourish as new Cabana Club members join
High Tide’s Cabana Club, with over 1.1 million members, plays a significant role in its success. This includes drawing in approximately 3 million customers from the United States and bolstering the company’s global appeal. Furthermore, the Cabana ELITE paid membership program experienced a rapid expansion with a whopping 18,800 members, representing a 39% increase from Q2 and growing faster than ever before.
High Tide recognized as the fastest-growing cannabis retailer in the Americas
Award-winning business news outlet The Financial Times has acknowledged High Tide as the fastest-growing retailer in the Americas. In addition, the company is ranked as the highest revenue-generating cannabis company in Canadian dollars. These accolades further solidify High Tide’s stellar reputation as a key player within the cannabis retail industry.
Looking ahead at High Tide’s future growth
By surpassing its financial goals, High Tide solidifies its position as a frontrunner in the cannabis retail industry. The company’s thriving Cabana Club membership program, continued same-store sales growth, and commitment to cost-control measures contribute significantly to these outstanding results. As High Tide moves forward, investors can anticipate even more significant advances in the fast-paced, competitive landscape of cannabis retail.
Rita Ferreira
Rita is a seasoned writer with over five years of experience, having worked with globally renowned platforms, including Forbes and Miister CBD. Her deep knowledge of hemp-related businesses and passion for delivering accurate and concise information distinguish her in the industry. Rita's contributions empower individuals and companies to navigate the complexities of the cannabis world, and her work remains a valuable resource for those seeking a deeper understanding of its potential.
