Cannabis retailer High Tide reported third-quarter revenue of 95.4 million Canadian dollars ($71.8 million), nearly double the company’s take for the same period last year.
The sales figure represents a 17.7% increase over the previous quarter, coming in well ahead of analyst expectations, according to the company’s recently released quarterly report.
Analysts said the rising sales were driven by brick-and-mortar expansion in Canada as well as the Calgary, Alberta-based company’s successful discount-club strategy.
For the three months ended July 31, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), a measure of profitability, was CA$4.2 million, ahead of analyst expectations of roughly CA$2.9 million.
Net loss in the quarter was CA$2.7 million.
“Our team continues to deliver strong execution, and this shows in our third quarter results, which feature quarterly revenue of $95 million, representing 98% annual growth, as well as a 176% annual increase in adjusted EBITDA, making this the tenth consecutive quarter of positive adjusted EBITDA for High Tide,” CEO Raj Grover said in a statement.
“These impressive numbers come despite hyper-competitive cannabis retail markets across Canada and a global softening of e-commerce sales as pandemic-related restrictions are continuing to be lifted.”
The CEO added that the increasing sales and focus on costs led to CA$2.3 million in positive cash flow from operations.
Cash on hand was CA$18.3 million as of July 31.
High Tide has 140 locations across Canada and is aiming to reach 150 by year-end.