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Tuesday, Aug 16, 2022
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Business

High Tide pushes annual sales up 118% to $181.1M in fiscal 2021

Due to ‘personnel challenges’ the firm has yet to finalize its income tax provision, but expects to do so on or by Jan. 31

High Tide pushes annual sales up 118% to $181.1M in fiscal 2021
Image via High Tide

Leading Canadian cannabis seller High Tide Inc. (TSX-V: HITI) (Nasdaq: HITI) (FSE: 2LYA) is pushing past its competition, constantly driving new revenues and acquiring competitive assets.

On Thursday, the firm released its unaudited earnings results for the fourth quarter and fiscal year 2021, with annual sales climbing 118 per cent to $181.1 million, from $82.3 million the year before.

Quarterly revenue growth was strong as well, up 12 per cent to $53.9 million in the three months ended Oct. 30, from $48.1 in the third quarter.

But the company has yet to complete its filings, and isn’t yet reporting its net income.

“Due to personnel challenges arising from the pandemic, the company has not been able to finalize its income tax provision to date,” reads a statement.

High Tide says the full audited results will be available on or by Jan. 31.

Read more: High Tide reports quarterly revenue up 18% to $48.1M

Read more: High Tide switches to discount club model

The company notes that its fourth-quarter earnings only include 12 days of sales from Blessed CBD, a Scotland-based CBD brand it recently acquired for £9 million (C$15.3 million). That total includes no contributions from Colorado CBD maker NuLeaf Naturals, which it bought for US$31 million (C$39.5 million) and expects to bring in over $70 million in the current quarter.

Gross profit margin was a reported 35 per cent for the year, falling slightly to 33 per cent in the fourth quarter as High Tide switched to a discount club model.

Annual adjusted earnings before interest, tax, depreciation and amortization rose 56 per cent to $12.4 million, from $8 million.

Cash on hand at the end of the quarter was $14 million.

Geographically, yearly sales were up 120 per cent in Canada to $150.5 million, up 109 per cent in the U.S. to $29.7 million and up 12 per cent internationally to $0.9 million.

The firm reported annual sales of $12.2 million from its Cabanalytics data platform.

Over the fiscal year, same-store sales fell 16 per cent, skewed heavier toward its Ontario locations. High Tide says this is because the metric captures its earliest stores, which were destined to have more competition.

Read more: High Tide launches into UK with £9M Blessed CBD deal

Read more: High Tide expands US presence with Colorado CBD acquisition deal

Switching to the discount club model, the company expects same-store sales to pick up in the current quarter and beyond.

During the fourth quarter, the firm opened 15 new stores: 11 in Ontario, two in Saskatchewan, one in Alberta and one in Manitoba.

It also closed a non-dilutive credit line for potential debt capital of $25 million.

It bought a Saskatchewan business with five locations in Regina for $2.7 million, and U.S. online retailer DS Distribution (operating as DankStop) for $2.7 million.

CEO Raj Grover says High Tide expects to report over $70 million in first-quarter sales, making it the third-highest earning cannabis company in Canada.

“We are achieving this massive growth while remaining EBITDA positive for seven consecutive quarters,” he said in the statement. “Our goal is to lead the global cannabis industry across all business segments in which we operate, and I remain excited for our growth prospects throughout 2022 and beyond.”

 

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