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High Tide’s Revenue $95.4 Million in Q3

Revenue at High Tide increased to $95.4 million in the third quarter of 2022 ending July 31, 2022, increasing 98% compared to $48.1 million in the same quarter last year. Quarterly revenue increased by 18% over the previous quarter of 2022. However, gross profit margin dropped from 35% to 27% compared to the same quarter last year. The shift in the gross margin was due to a change in retail pricing strategy to a discount club model.

Gross profit increased by 54% to $25.8 million in Q3 2022 compared to $16.7 million in Q3 2021 and adjusted EBITDA increased 176%.

Same-store sales rose by 46% compared to last year and 18% vs. last quarter.

“These impressive numbers come despite hyper-competitive cannabis retail markets across Canada and a global softening of e-commerce sales as pandemic-related restrictions are continuing to be lifted, says Raj Grover, President and Chief Executive Officer of High Tide. This membership number was our initial goal when we launched our discount club model last October, and we have now met our target in under a year. We look forward to rolling out our Cabana Elite program in the near term. This program will let members access additional benefits for a small recurring fee, while the existing Cabana Club program will remain free of charge,” says Raj Grover, President and Chief Executive Officer of High Tide.

Enhancing Loyalty Program

The Cabana Club Loyalty Program, which is the largest in Canadian cannabis retail, has surpassed 750,000 members, with over 90% of daily transactions conducted by club members. The company anticipates launching an enhanced fee-based Cabana Elite Membership program by the end of 2022. Grover says, “This membership number was our initial goal when we launched our discount club model last October, and we have now met our target in under a year. We look forward to rolling out our Cabana Elite program in the near term. This program will let members access additional benefits for a small recurring fee, while the existing Cabana Club program will remain free of charge.”

Retail Expansion

5 new Canna Cabana locations were opened: 2 in Alberta, 1 in Ontario, 1 in Saskatchewan, and the company’s first store in British Columbia. On the mergers and acquisitions front, High Tide acquired Crossroads Cannabis in Woodstock, Ontario, and Bud Heaven, which operates two stores in Bracebridge, Ontario. The company also acquired nine stores from Choom Holdings Inc. and seized the shares of Halo Kushbar Retail Inc. taking control of three operating cannabis retail stores in Alberta.

As of July 31, High Tide operates 140 retail cannabis stores across Canada.

Tags: cabana club (2), Canadian cannabis industry (14), Canna Cabana (19), cannabis mergers and acquisitions (4), Cannabis Retail (252), High Tide (26), Raj Grover (25)