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High Tide is Fastest Growing Retailer

High Tide Inc., one of Canada’s largest cannabis retailers, recently released its financial results for the first fiscal quarter of 2023 ending January 31, 2023.

Record Revenue

The company reported a second consecutive quarter of record revenue—revenue increased to $118.1 million in the first fiscal quarter of 2023 compared to $72.2 million during the same period in 2022, representing an increase of 64% year-over-year and 9% sequentially.

Gross profit increased to $32.2 million in the first fiscal quarter of 2023 compared to $23.0 million during the same period in 2022, representing an increase of 40% year-over-year and 9% sequentially. Gross profit margin in the three months ending January 31, 2023, was 27%, consistent with the previous three quarters.

According to Raj Grover, President and CEO of High Tide, this makes High Tide the largest revenue-generating cannabis company in Canada. High Tide has also reached 9% of the Canadian cannabis retail market share.

Paid Loyalty Program Continues to Grow

During the first quarter, High Tide continued the rollout of ELITE, its cannabis paid loyalty program, with membership reaching 9,500.

The company remains the largest non-franchised cannabis retailer in Canada with 151 locations as well as over 975,000 Cabana Club Members. Cabana Club members can upgrade to ELITE.

A Shift in Strategy

Grover also announced a shift in High Tide’s strategy to mitigate risk and navigate economic uncertainty: “We are now adding to our strategic mission the goal of becoming one of the first cannabis companies in Canada to generate free cash flow from operations by the end of this calendar year.”

This change in strategy means High Tide will be turning its attention away from the previously communicated plans to add 40 to 50 new stores in 2023.

However, in the first quarter 2023, organic retail store expansion continued with eight new Canna Cabana locations: 1 in British Columbia, 1 in Manitoba, and 6 in Ontario. High Tide closed the acquisition of Jimmy’s, adding two additional retail cannabis stores in BC.

High Tide Awarded Top Spot in Financial Times List

Shortly after releasing their financial results, High Tide announced it was awarded the top spot in the retail category and ranked 31 out of 500 companies across all categories on the Financial Times’ List of Americas’ Fastest Growing Companies.

“Cannabis is such a young industry, and to be recognized as one of the top players by Financial Times, an internationally recognized publication, is a major honour,” says Raj Grover, President and Chief Executive Officer of High Tide. “This is consistent with our growth trajectory over the last few years, as we have been named one of Canada’s top-growing companies in 2021 and 2022 by the Globe and Mail‘s Report on Business magazine. Winning the top spot in the retail category speaks to our team’s dedication in executing our vision to become the clear leader and a household name in the Canadian cannabis retail landscape.”

Photo courtesy of Canna Cabana

Tags: Canadian cannabis store (3), Cannabis Industry (183), Cannabis Retail (394), Cannabis Sales (66), fastest growing company (1), High Tide (32), Raj Grover (31)