High Tide Releases Audited 2023 Financial Results Featuring Record Fourth Quarter Revenue of $127.1 Million, Record Adjusted EBITDA of $8.4 Million and Record Free Cash Flow of $5.7 Million, Respectively
- The Company increased its positive free cash flow run rate from $4.1 million in the third fiscal quarter of 2023 to $5.7 million in the fourth fiscal quarter of 2023, representing a sequential increase of 40%
- Current annual revenue run rate is approaching $510 million, maintaining High Tide’s position as Canada’s top revenue-generating cannabis company¹
- The Company celebrated its 15th consecutive quarter and its 5th straight quarter of record² positive adjusted EBITDA³
- Same-store sales increased 13% year-over-year and 3% sequentially
- The Company maintains its position as the largest non-franchised cannabis retailer in Canada, with 163 current locations and 4.9 million total customers across Canada, the United States and Europe
- Cabana Club membership grew to over 1.28 million members as of today, representing an increase of 35% year-over-year and 16% since September 14, 2023
- The Company grew its Cabana ELITE paid membership program at its fastest pace since inception to over 28,000 members as of today, representing an increase of 367% year-over-year and 49% since September 14, 2023
- During the fourth fiscal quarter of 2023, Canna Cabana held over 19% of the cannabis retail market share in Alberta and 9% in Ontario. Across the five provinces in which the Company has a presence, Canna Cabana represented 10% of the market share in dollars while only representing approximately 4.6% of the total cannabis retail store count in those provinces⁴
CALGARY, AB, Jan. 29, 2024 /PRNewswire/ – High Tide Inc. (“High Tide” or the “Company”) (NASDAQ: HITI) (TSXV: HITI) (FSE: 2LYA), the high-impact, retail-forward enterprise built to deliver real-world value across every component of cannabis, filed its year-end audited 2023 financial results on January 29, 2024, the highlights of which are included in this news release. The full set of audited consolidated financial statements for the fiscal years ended October 31, 2023, and 2022 (the “Financial Statements”) and accompanying management’s discussion and analysis can be accessed by visiting the Company’s website at www.hightideinc.com, its profile pages on SEDAR+ at www.sedarplus.ca, and EDGAR at www.sec.gov.
¹Based on reporting by New Cannabis Ventures as of December 19, 2023. For the New Cannabis Ventures’ senior listing, segmented cannabis-only sales must generate more than US$25 million per quarter (CAD$31 million) – for full details, see: https://www.newcannabisventures.com/cannabis-company-revenue-ranking/
²Excluding a one-time benefit in the third fiscal quarter of 2023 of $2.4 million related to Manitoba’s removal of its Social Responsibility Fee (“SRF”) retroactive to January 1, 2022
³Adjusted EBITDA is a non-IFRS financial measure
⁴As per data from Statistics Canada and Provincial regulators
“Once again, the High Tide team has demonstrated that it is amongst the best in the business by delivering a second consecutive quarter of record free cash flow, clocking in at $5.7 million for the fourth quarter, representing an increase of 40% from the third quarter. This places us amongst an elite group of publicly traded cannabis companies anywhere to consistently generate meaningful amounts of free cash flow while continuing to grow our business. Our operational prowess is starting to get noticed by the capital markets, as witnessed by the fact that High Tide closed 2023 as Canada’s top-performing cannabis stock, even outperforming several ETFs and MSOs. We did this all while simultaneously reducing our debt to a very manageable debt to 2023 Adjusted EBITDA ratio of just 0.9, while adding 13 stores and breaking revenue records since inception and Adjusted EBITDA records for five straight quarters,” said Raj Grover, Founder and Chief Executive Officer of High Tide.
“Looking ahead, we see ample opportunities to build on our success in the Canadian market, where our Cabana Club membership is showing no signs of slowing down and now stands at over 1.28 million Cabana Club members. ELITE, our paid membership tier, grew at its fastest pace since inception, up 9,200 members versus September 14, 2023, and has now surpassed 28,000 members. Ontario’s recent decision to double its provincial retail cannabis store cap to 150 is a game changer for High Tide as we hope to meaningfully increase revenues over the next several years and now adjust our long-term growth target to 300 bricks-and-mortar stores in Canada, further solidifying our position as the country’s largest non-franchised cannabis retailer.
“While we remain focused on our core Canadian business, like any forward-thinking company, we are always looking at what opportunities may exist to expand our Canna Cabana brand internationally. We are seeing momentum regarding cannabis rescheduling in the United States, which could potentially pave a path for major U.S. exchanges to allow listed companies to engage in plant-touching business. We are also keenly following developments in Europe, particularly Germany, where adult use pilot projects focused on specialty cannabis shops could be possible in 2025.”
These global opportunities, combined with an improved regulatory environment across many Canadian provinces, gives me confidence that 2024 will be yet another stellar year for High Tide as we work towards our ambition of building a top-tier global adult-use cannabis brand.
Raj Grover, CEO