Skip to Main Content

High Tide’s Q2 Revenue up 98%

There were many positives for the cannabis retail giant High Tide following the June 14th release of its second quarter results ended April 30, 2022. The first one being a 98% rise in revenue for the Alberta-based company.

Revenue soared to $81 million compared to $40.9 million in the same quarter in 2021 and revenue also rose by 12% compared to the previous quarter. This impressive increase is actually the second-highest quarterly revenue figure ever recorded by a Canadian cannabis company.

Rise in Gross Profit

But the good news didn’t end there for High Tide. The company is also celebrating a 51% rise in second quarter gross profit, up from $15 million in the same quarter last year to $22.7 million.

Cabanalytics data sales came in at $5.1 million in the second quarter of 2022 compared to $2.9 million for the same quarter last year. Sequentially, Cabanalytics data sales are up by 10% compared to the previous quarter. Additionally, same-store sales increased by 23% for locations that were in operation throughout the second quarter of 2022 and 2021,. Since the launch of the company’s discount club model in October of 2021, daily same-store sales have also gone up, but this time by a whopping 48%.

Store Network Expanding

Another highlight for the second quarter of 2022 is the expansion of the company’s retail store network with the addition of five new Canna Cabana locations (three in Alberta and two in Ontario). Meanwhile, Cabana Club membership increased to over 550,000 members, from 245,000 at the launch of the Company’s discount club model. This represents one of High Tide’s biggest victories to date with a 124% increase in membership over the past eight months.

While gross profit margin for the quarter dropped by 4% from 32% down to 28%, this small dip is attributed to an increased share of total revenue coming from the bricks-and-mortar retail side of the company’s business. This is a result of continued easing of pandemic restrictions across North America, and the speedy bricks-and-mortar expansion in Canada. Adjusted EBITDA for the three months ended April 30, 2022, was also down to $2.4 million compared to $3.0 million in the previous quarter. This can be attributed to retail seasonality, as the previous quarter included the holiday season.

Overall, the mood was positive and celebratory for High Tide and its President and CEO Raj Grover after the release of the results.

“Once again, I can proudly report that High Tide continues to see consistent and significant growth year-over-year and sequentially with every passing quarter, despite a persistently challenging macro environment and the state of the capital markets,” says Grover.

“Pleased With our EBITDA”

“Since its launch, the ongoing growth of our innovative discount club model has resulted in a 48% increase in daily same-store sales, contributing to our 98% revenue growth over the same quarter last year. While we aggressively gain retail market share in Canada ahead of our peer group, we have remained adjusted EBITDA positive for the ninth straight quarter. Although we are pleased with our EBITDA of $2.4 million this quarter, we highlight that, as the only pure-play cannabis retailer trading on Nasdaq, direct ongoing costs incurred associated with our Nasdaq listing amounted to approximately $750,000 this quarter. Our continued EBITDA positivity is a critical point for us, as we are steadily growing at the same time when many of our publicly-traded and private peers are facing fierce challenges and slowing down,” Grover adds.

Tags: Canadian cannabis industry (11), Canna Cabana (17), cannabis (19), Cannabis Retail (206), High Tide (23), Raj Grover (22)