High Tide Reports Third Quarter 2024 Earnings
High Tide Inc. continues to impress with strong financial performance, showcasing a robust and disciplined approach to its operations in the third fiscal quarter of 2024. The company achieved record revenue of $131.7 million, a 6% increase both year-over-year and sequentially, up from $124.4 million in the same period last year. This all-time high underscores the company’s ability to expand its market share and grow its top line in a competitive industry.
Gross profit also experienced a modest uptick, reaching $35.5 million in the third fiscal quarter of 2024, compared to $34.6 million during the same period in 2023. This represents a 3% year-over-year increase, though gross profit remained consistent sequentially. Despite these gains, the gross profit margin slipped slightly to 27% from 28% year-over-year and sequentially, reflecting some margin pressures, potentially from operational costs or competitive pricing strategies.
A key highlight for High Tide is its streak of 18 consecutive quarters of positive Adjusted EBITDA. For the third fiscal quarter of 2024, Adjusted EBITDA was $9.6 million, compared to $10.2 million during the same period last year. The previous year’s figure benefited from a $2.4 million positive impact from the removal of the Social Responsibility Fee (SRF) in Manitoba, making this quarter’s performance more impressive when adjusted for this one-time benefit. Sequentially, Adjusted EBITDA was down slightly from $10.0 million, but the company posted $8.9 million in EBITDA before customary adjustments, marking its highest EBITDA performance to date. This reflects the company’s strong operational efficiency and ability to generate sustained earnings.
The company also achieved an Adjusted EBITDA margin of 7.3% in the third fiscal quarter, a significant improvement from 6.3% in the same period last year, excluding the SRF impact. However, on a sequential basis, this margin was slightly lower than the 8.1% achieved in the previous quarter.
In terms of profitability, the company generated positive net income of $0.8 million in the third fiscal quarter, a significant improvement compared to the $(3.6) million net loss in the same period last year and the $0.2 million reported in the prior quarter. Income from operations also saw a strong recovery, reaching $3.1 million, up from $(0.7) million in the same period last year and $2.0 million sequentially. Earnings per fully diluted share were $0.01 in the third fiscal quarter, compared to $(0.04) last year and $(0.00) sequentially.
High Tide’s Cabanalytics Business Data and Insights platform, along with advertising revenue and other ancillary revenue streams, contributed $9.0 million in the third fiscal quarter of 2024, representing a 36% increase from $6.7 million in the same period last year and a 1% rise sequentially. This diversification of revenue streams is a key part of High Tide’s growth strategy, reflecting the company’s ability to capitalize on its extensive market data and expand beyond traditional cannabis retail.
Finally, the company’s liquidity remains strong, with cash and cash equivalents totaling $35.3 million as of July 31, 2024, an all-time high. This represents a 37% increase from $25.7 million in the same period last year and a 2% sequential increase from $34.5 million as of April 30, 2024. This robust cash position provides the company with flexibility for future investments and growth initiatives.
Overall, High Tide continues to deliver impressive financial results, with record revenues in 2024, strong cost controls, and sustained profitability.
