#Canada #High Tide #Canna Cabana #Calgary #Cabana Club

High Tide Reports Impressive Fourth Quarter and 2024 Year-End Financial Results

High Tide Inc. has made a stunning announcement detailing its financial performance for the fiscal year ending October 31, 2024. The Canadian cannabis retail powerhouse, known for its flagship brand Canna Cabana, reported a record-breaking annual revenue of $522.3 million, demonstrating a 7% increase from the previous year. The company’s success continues as it marks the sixth consecutive quarter of positive free cash flow, reporting $5.9 million in the last quarter alone, leading to a total of $22 million for the year.

This achievement underscores High Tide’s commitment to operational excellence and robust market strategies, allowing it to retain its position as one of the leading cannabis companies in Canada, generating the highest revenue in the sector.

Record Growth and Market Share

High Tide's impressive growth can be attributed to several factors, including a significant increase in its Cabana Club Loyalty Program, which now boasts over 5.32 million members globally, including 76,000 ELITE members. This loyalty program has been fundamental in cultivating customer trust and repeat patronage, helping High Tide strengthen its market presence.

Notably, the company witnessed a 9% year-over-year increase in quarterly revenue for the fourth fiscal quarter, raking in $138.3 million. Furthermore, its same-store sales have shown resilience, rising 0.4% year-over-year, while competitor stores faced a decrease.

High Tide's Canna Cabana locations represent 11% of the total cannabis retail market share across the five provinces it operates in, even though it only comprises 5% of the total cannabis retail locations in those provinces, reflecting an effective strategy to capture market demand.

Financial Metrics and Comparison

The financial highlights paint a positive picture:

• - Gross profit climbed to $142.5 million, representing a 9% increase year-over-year.
• - The gross profit margin for the year remained steady at 27% while slightly dipping to 26% in the last quarter.
• - For 2024, the company reported a net loss of $3.8 million, a significant improvement from last year’s loss of $41 million.
• - Adjusted EBITDA reached $38.3 million, marking a 25% improvement from the prior year’s figures.

These metrics reflect not only the company's robust revenue growth but also its commitment to reducing losses and improving its operational efficiencies.

Strategic Expansion and Future Initiatives

High Tide’s expansion plans are ambitious. With the addition of 30 new stores during 2024, the company aims to reach a total of 300 locations across Canada by maintaining its trajectory of growth, which is aimed at achieving positive free cash flow for the running year.

The company has also announced its expansion into Germany’s medical cannabis market via the acquisition of Purecan GmbH, a strategic move that will leverage its existing relationships with licensed producers to enhance its position internationally. This strategic diversification into medical cannabis is also expected to fuel future revenue growth.

Moreover, High Tide has initiated its Cabana Club membership program across the U.S. and E.U., positioning itself to tap into new international markets.

Challenges Ahead

Despite the prevailing positive outlook, the path forward is not without challenges. High Tide continues to monitor the dynamics of the cannabis market, including competitive pressures and regulatory changes, with a focus on sustaining its growth momentum. The company is dedicated to implementing robust cost control measures, which have seen administrative expenses decrease as a percentage of revenue, indicating efficient operational management.

Final Thoughts

In conclusion, High Tide Inc. has not only achieved remarkable financial milestones in 2024 but has also set a strong foundation for future growth in the ever-evolving cannabis landscape. As the company expands its loyalty program and enters new markets, its innovative approaches and strategic partnerships will likely keep it at the forefront of the cannabis retail industry.

With continuing investments in customer loyalty, market expansion, and financial management, High Tide is poised to maintain its status as a leader in the cannabis retail market.