High Tide Canada (Nasdaq, HITI), TSXV (HITI), and FSE (2LYA) reported Wednesday that they had a net loss for their 2024 fiscal period which ended on October 31. This is a marked improvement over the losses in 2023 of C$40.9million.
High Tide, in a release to the press, attributed its shrinking losses to the “all-time records” of C$522.3 millions, an increase of 7% over the previous year’s revenues of C$487.6million. The revenue for the entire fourth quarter was C$138.3 millions, an increase sequentially of C$131.7million.
Raj Grover stated that “our fourth consecutive quarter was positive free cashflow,” and the C$5.9million in the fourth fiscal quarter represented an increase by 4%. The C$21.9million totaled a 217 percent rise for the year. Grover stated that there are more plans for expansion in Canada and Germany. The company recently purchased the majority of Purecan GmbH.
We are diversifying revenue streams in order to drive future growth. Grover stated that this diversification would enhance our Canadian discount model’s competitiveness and cement High Tide’s position as a leader in the industry.
High Tide’s highlights of the third quarter, and for the entire fiscal year include:
- Canna Cabana’s dispensaries held an 11 percent market share in Canada’s five provinces where it was active in the fourth-quarter, even though the company owned only 5% all of the licensed dispensaries.
- The company opened 30 new dispensaries in Canada during fiscal 2024, increasing its footprint from 191 to a total of 191.
- Increased its Cabana Club loyalty membership in the United States by over 34%, year-over-year, to more than 5.3 Million, with 76,000 of them being “elite”. Also, expanded membership abroad.
High Tide, with its more than $500 million in revenues and continued growth, was not able to overcome the red numbers in the ledger. This is likely due, in part, to stagnating or falling same-stores sales in Canada. High Tide said that same-store revenue increased by only 0.4% from year to year, and 4.0% sequentially.
High Tide would have had a net profit of C$1.2M if not for the “non cash impairment charges” reported by the company.
High Tide has also secured an additional C$15million credit line to finance further expansion. High Tide’s long-term plan is to reach 300 retail shops across Canada.
High Tide’s total assets at the end of October were C$246.2 Million, which included C$47.2 Million in cash. Its total liabilities totaled C$100.6M.