Major Canadian cannabis retail chain High Tide posted a net loss of 1.6 million Canadian dollars ($1.2 million) for its second quarter on revenue of CA$118.1 million.
The CA$1.6 million quarterly net loss represents an 81% improvement over the same quarter in the previous year and a 59% improvement from the previous quarter.
Revenue increased nearly 46% compared to the second quarter of 2022 and increased less than 1% from the previous quarter. (High Tide noted that the second quarter was three days shorter than the first “and is a seasonally slower quarter.”)
The Calgary, Alberta-based cannabis retailer, which also owns marijuana accessory and CBD e-commerce platforms among other assets, reported a 27% gross profit margin for the quarter ended April 30, “consistent with the previous three quarters.”
Gross margins in High Tide’s physical cannabis stores “ticked higher sequentially.”
“Our bricks-and-mortar margins have increased by approximately 1% every quarter for the last five quarters, and we feel there is further opportunity to increase margins in most markets where we operate,” High Tide CEO Raj Grover said in a statement.
Grover added that High Tide has “achieved nearly 10% of the Canadian retail market share outside of Quebec,” which has a government monopoly on cannabis retail.
High Tide “(believes) there remains a significant opportunity to continue moving towards our goal of capturing 15% of this market,” Grover continued.
The retailer reported 153 stores across Canada.
Competing Canadian cannabis retail chain Fire & Flower Holdings was recently granted creditor protection after repeated quarterly net losses.