In a raging sea of cannabis companies with rising deficits, High Tide Inc. is weathering the storm by diversifying its fleet.
The company already boasts several revenue streams including recreational cannabis retail brands Canna Cabana and KushBar, a successful e-commerce brand GrassCity, and wholesale distribution, and it widened its net last month after acquiring the majority of shares in Meta Growth Corp, previously National Access Cannabis, to create the largest network of cannabis stores in the country.
On top of that, COVID-19 didn’t stop High Tide from opening six new stores—that’s five Canna Cabana locations, including two in Toronto and one each in Burlington, Niagara Falls, and Banff, along with one KushBar location in Medicine Hat.
This time last year, High Tide recorded third-quarter revenue of $8.29 million, however, in 2020 the company brought in $23.2 million. That’s an increase of 180% since last year and an increase of 15.6% since the last quarter when they earned $19.6 million in revenue.
The majority of this revenue was gathered from retail sales, which make up 89%, or $20.5 million, with the remainder coming from wholesale sales.
When it comes to profits, they are higher than ever. High Tide is up 20% from last quarter. In the third quarter, the company ended up with $9.2 million in profits, compared to $7.4 million last quarter. High Tide has fought to stay out of the red and appears to be succeeding since it now boasts an operating income of $2.1 million compared to the operating loss of $4 million that it reported last year. Operating costs appear to stay fairly steady, and it appears that High Tide’s aggressive growth has paid off with record-breaking numbers.
“High Tide’s diversified and integrated businesses, including its best-in-class e-commerce platform, were strategically positioned to generate the Company’s strongest results since inception,” said Raj Grover, President and Chief Executive Officer. “Our dedicated and passionate employees worked together to achieve these outstanding results and they should feel extremely proud of their hard work in this collective accomplishment.”