High Tide nearly triples revenue in Q2 to $19.6 million and becomes the first Canadian cannabis retailer in its peer group to report positive adjusted EBITDA of $1.9 million
HIGH TIDE INC., a Canadian retail-focused cannabis corporation enhanced by the manufacturing and distribution of smoking accessories and cannabis lifestyle products, has reported its financial and operating results for the second quarter of fiscal 2020 ending April 30, 2020.
Second Quarter 2020 – Financial Highlights:
- Revenue for the three months ended April 30, 2020 increased by 197 per cent, to $19.57 million from $6.60 million for the same quarter last year.
- Gross profit for the three months ended April 30, 2020 increased by 214 per cent, to $7.39 million from $2.35 million for the same quarter last year.
- Gross profit margin for the three months ended April 30, 2020 increased to 38 per cent from 36 per cent for the same quarter last year.
- Adjusted EBITDA for the three months ended April 30, 2020 increased by 156 per cent, to $1.94 million from an Adjusted EBITDA loss of ($3.49 million) for the same quarter last year.
- Cash and cash equivalents as of April 30, 2020 increased to $7.04 million from $0.81 million as at October 31, 2019.
“The second fiscal quarter of 2020 marks a historic moment in High Tide’s history,” said Raj Grover, High Tide’s president and CEO. “I am fiercely proud of our team for delivering adjusted EBITDA well ahead of the company’s peer group and positive cash flow from operations through their unwavering commitment to our core strategy, especially throughout the pandemic. A decade of experience with cannabis consumers has been the key ingredient to our substantial year-over-year increase in revenue and enhanced gross margin.”
“We are grateful to the many customers, employees, shareholders and other stakeholders who believed in High Tide’s vision and today share in our success” –Raj Grover, High Tide president and CEO
High Tide’s premier Canadian retail brand, Canna Cabana, operates in 33 locations in Ontario, Alberta and Saskatchewan, with additional locations under development across Canada. High Tide has been serving cannabis consumers for over a decade through its numerous lifestyle accessory enterprises, including e-commerce platforms Grasscity.com and CBDcity.com, lifestyle and licensed entertainment brand manufacturer, Famous Brandz, and its distribution divisions, RGR Canada and Valiant Distribution.
High Tide’s premier retail brand, Canna Cabana
“We are grateful to the many customers, employees, shareholders and other stakeholders who believed in High Tide’s vision and today share in our success,” added Grover. “We remain focused on continuing to strengthen our balance sheet and delivering value by furthering our retail expansion across Ontario. I am confident that our future results will continue to reinforce our position as a leading cannabis operator.”
Second Quarter 2020 – Operational Highlights:
- The Company successfully acquired and integrated the branded Canna Cabana locations in Hamilton and Sudbury.
- The Company further developed its Saskatchewan retail presence by acquiring a licensed cannabis retail location in Tisdale, Saskatchewan.
- High Tide entered into an agreement with Halo Labs to sell its KushBar assets for $12 million, subject to the required regulatory approvals.
- The Company opened a Canna Cabana store in the heart of downtown Edmonton, Alberta.
- Integration of the Grasscity e-commerce platform into High Tide’s Las Vegas facility has resulted in continued growth of North American market share and daily transaction volume.
- Through the COVID-19 pandemic, existing Canna Cabana locations have remained operational and efficient, despite the challenging conditions facing retail across the country.
- As of June 17, 2020, approximately 47,000 members have joined Cabana Club, with 55 per cent of our average daily transactions conducted by Club members.
- To date, the Company’s portfolio includes a total of 36 branded retail cannabis locations in Ontario, Alberta, and Saskatchewan.
High Tide remains focused on the fundamentals of profitable retail, while continuing to leverage cannabis and its related accessories through the Company’s manufacturing and e-commerce portfolio. High Tide’s diverse mix of consumer channels provides access to layered insights and context unavailable to competitors, providing the Company with an advantage in understanding the development of North American and global cannabis user preferences in real time.