Canadian Cannabis Retail Giant High Tide Narrows Net Loss YoY, Reports 37% Revenue Growth In 2023

Author: Jelena Martinovic | January 30, 2024 10:13am

High Tide Inc. (NASDAQ:HITI) (TSXV:HITI) (FSE: 2LYA) filed its year-end audited 2023 and fourth quarter financial results on Monday. Revenue rose by 37% year-over-year to CA$487.7 million ($362.8 million) in 2023, and 2% sequentially to CA$127.1 million in the fourth fiscal quarter.

The Calgary, Alberta-based cannabis retail giant also reported an increase in its positive free cash flow run rate from CA$4.1 million in the third fiscal quarter of 2023 to CA$5.7 million in the fourth fiscal quarter, up by 40% quarter-over-quarter. That's the second consecutive quarter of record free cash flow.

"This places us amongst an elite group of publicly traded cannabis companies anywhere to consistently generate meaningful amounts of free cash flow while continuing to grow our business," Raj Grover, founder and CEO of High Tide, said. "Our operational prowess is starting to get noticed by the capital markets, as witnessed by the fact that High Tide closed 2023 as Canada’s top-performing cannabis stock, even outperforming several ETFs and MSOs."

Q4 2023 Financial Highlights

• Gross profit totaled approximately CA$33 million, compared to CA$29.5 million gross profit in the same period of 2022, or up by 12% year-over-year.
• Gross margin was 26% for the quarter ended Oct. 31.
• Total operating expenses amounted to CA$67.2 million, down from CA$83.4 million in the prior year's period.
• Net loss was CA$31.8 million, down from CA$52.5 million in the corresponding quarter of 2022.
• Adjusted EBITDA came in positive at CA$8.3 million for the period, up 67% year-over-year.

FY 2023 Financial Highlights

• Gross profit totaled CA$131.3 million, compared to roughly CA$101 million gross profit in 2022, up by 30% year-over-year.
• Gross margin was 27% for the year ended Oct. 31.
• Total operating expenses amounted to CA$172.7 million, down from CA$173.3 million in the prior year.
• Net loss was CA$40.9 million, down from CA$70.8 million in 2022.
• Adjusted EBITDA came in positive at CA$30.6 million for the period, up 110% year-over-year.
• Cash on hand as of Oct. 31, 2023, was CA$30.1 million, compared to CA$25.1 million as of Oct. 31, 2022, and CA$25.7 million as of July 31, 2023.

“While we remain focused on our core Canadian business, like any forward-thinking company, we are always looking at what opportunities may exist to expand our Canna Cabana brand internationally," Grover said. "We are seeing momentum regarding cannabis rescheduling in the United States, which could potentially pave a path for major U.S. exchanges to allow listed companies to engage in plant-touching business."

HITI Price Action

High Tide's shares traded 2.59% higher at $1.98 per share after hours on Monday afternoon.

Related News

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• High Tide Reports 14th Straight Quarter Of Positive Adjusted EBITDA, Q3 Results Best In History, CEO Says

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Posted In: HITI TSXV:HITI