
High Tide’s Raj Grover Talks Q3 2024 Earnings
In our latest Trade To Black podcast, hosts Shadd Dales and Anthony Varrell will be meeting with Guap, Raj Grover CEO of High Tide, and Seth Yakatan of Katan Associates International. Raj discusses High Tide’s latest earnings, and how the company continued to report record revenue for Q3 2024. We’ll also break down the latest news on the California market with Seth Yakatan, including the controversial hemp THC ban that appears to have earned a lawsuit for the state.
In the High Tide (NASDAQ: HITI) Q3 2024 earnings report released September 17, Raj explains how revenue figures topped the company records at $131.7 million, representing a 6% increase year over year and sequentially, up from $124.4 million in the same period from 2023. This also represents 18 consecutive quarters of positive adjusted EBITDA.
Following the earnings recap, Raj Grover discusses the challenges being experienced in the current Canadian cannabis landscape. Illegal dispensaries are staging a comeback, particularly in larger cities like Toronto and Ottawa. Dispensaries are also cropping up more and more on Indigenous lands. Both are putting pricing pressure on legal producers, resulting in a general decline in legal sales and profitability. To this end, lobbying efforts continue on the subjects of excise tax and government crackdown on illegal enterprises.
We touch on a recent article that was published by Canadian media publication Globe and Mail who placed High Tide at No. 87 out of 417 companies listed on the 2024 Report on Business ranking of Canada’s Top Growing Companies, and Raj shares High Tide’s future plans on expansion into Germany and the US.
Later in the podcast, Seth Yakatan, a capital markets advisor to Glass House Brands, joins the show to talk about the challenges on the west coast. California is proving a difficult environment for cannabis businesses between regulatory complexity, declining retail performance, and the struggle of many companies to remain profitable.
California Governor Gavin Newsom unveiled his emergency regulations for THC-containing hemp nearly one month ago. These regulations, Newsom said, were designed to prevent the sale of hemp products containing THC and intoxicating cannabinoids to minors. In response to this ban on products containing “any detectable quantity of THC,” the state is now facing a lawsuit filed by six hemp companies and one nonprofit. Among the plaintiffs are also Cheech and Chong.
We’ll share our thoughts on this lawsuit, plus upcoming investment trends you might want to keep an eye on.