High Tide filed its financial results for the second fiscal quarter of 2022 this week reporting a 12 per cent increase in revenue compared to the previous quarter.
High Tide’s revenue increased to $81.0 million compared to $40.9 million in the same quarter last year. Sequentially, its revenue increased by 12 per cent compared to the previous quarter, making it the second-highest quarterly revenue figure generated by a Canadian cannabis company reporting in Canadian dollars.
The company also saw a 51 per cent increase in gross profits year-on-year, from $15 million in Q2 of 2021 to $22.7 in the same quarter of 2022.
“Once again, I can proudly report that High Tide continues to see consistent and significant growth year-over-year and sequentially with every passing quarter, despite a persistently challenging macro environment and the state of the capital markets,” said Raj Grover, president and chief executive officer of High Tide.
“While we aggressively gain retail market share in Canada ahead of our peer group, we have remained adjusted EBITDA positive for the ninth straight quarter. Although we are pleased with our EBITDA of $2.4 million this quarter, we highlight that, as the only pure-play cannabis retailer trading on Nasdaq, direct ongoing costs incurred associated with our Nasdaq listing amounted to approximately $750,000 this quarter.
“Our continued EBITDA positivity is a critical point for us, as we are steadily growing at the same time when many of our publicly-traded and private peers are facing fierce challenges and slowing down.”
The Canadian firm is the parent company of the UK CBD brand, Blessed CBD. This year, High Tide entered the German market via the brand with the organic sale of premium hemp-derived CBD products on its e-commerce platform.
The company said it continues to monitor the German legislative process closely, as the new German government has recently indicated its intent to introduce a cannabis legalisation bill by the end of 2022.
In addition to growing its in-house brands, High Tide intends to continue growing its online retail portfolio through further strategic and accretive acquisitions. Through organic growth and accretive M&A, the company said it expects to continue to increase its revenue through the third fiscal quarter of 2022 and for the remainder of the year.
With 126 brick and mortar stores in Canada, the company said it is well on the way to achieving its goal of increasing its Canadian retail store portfolio to at least 150 locations by the end of 2022.
High Tide also revealed firm plans to build upon its existing momentum in the international hemp-derived CBD and consumption accessories e-commerce sectors.
Throughout 2022, High Tide will integrate and expand the CBD brands that it acquired in 2021, including NuLeaf Naturals, FAB CBD and Blessed CBD. The company recently launched subscribe-and-save programs on the platforms of all three of its CBD subsidiaries.