Cannabis retail giant High Tide Inc. (TSX-V: HITI) (Nasdaq: HITI) continues to ride a wave of success in Canada’s ever-evolving pot shop sector.
In its third-quarter 2021 results Wednesday, the company reports revenue up 18 per cent to $48.1 million in the three-months ended July 31, from $40.9 million in the previous fiscal period.
Gross profit margin contracted slightly to 35 per cent, from 37 per cent last quarter.
High Tide toted its sixth straight quarter of positive adjusted earnings before interest, taxes, depreciation and amortization, which slid in Q3 by 207 per cent to $1.5 million, from $4.7 million.
It attributed the fall in adjusted EBITDA primarily to expenses related to up-listing its stock to the Nasdaq.
Net loss from operations rose quarterly by 62 per cent to $7.3 million, but total net loss fell 85 per cent to $1.8 million.
In the U.S., where it owns online headshop Smoke Cartel, High Tide says revenue increased 69 per cent to $9.6 million, up from $5.7 million in Q2. It also acquired DankStop subsequent with Q3 ending.
In Ontario, Canada’s largest provincial cannabis market, due to pandemic restrictions stores were closed for in-person shopping for about half of the second quarter with only click-and-collect and delivery allowed, notes CEO Raj Grover in a statement.
“Despite these challenges we have been able to remain EBITDA positive by increasing our revenue at a pace consistent with previous quarters.”
“This last quarter saw us continue our organic growth momentum by opening seven new retail locations across Canada with a total of 93 locations today,” Grover continues. “While the Canadian retail market remains competitive, our one stop cannabis shop concept is very well received. This is evidenced by the fact that our Cabana Club membership grew by over 69,000 during the last quarter.”
The retailer recently detailed its plan for in-house branded products at its Cabana Cannabis Co stores, in partnership with Heritage Cannabis Holdings (CSE: CANN) (OTCQX: HERTF) and Loosh Inc.
On Tuesday, High Tide also unveiled its new value retail concept Cannabis Chop Club.