Calgary, Alberta-based High Tide lost 52.5 million Canadian dollars ($38 million) in its quarter ended Oct. 31, driven largely by noncash impairment charges of CA$48.6 million related to e-commerce platforms.
Excluding the impairment charge, loss from operations amounted to CA$5.3 million for the quarter, more than double the CA$2.1 million loss in the same quarter in the previous year, the company disclosed in a late Monday news release.
Revenue in the fourth quarter doubled to CA$108.2 million, up from CA$53.8 million a year earlier.
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the fourth quarter was CA$5.02 million, up 206% year-over-year, which the company said was a record for any quarter.
High Tide has 151 locations across Canada, which the company says makes it the largest nonfranchised retailer.
The Calgary business also announced that it has entered into a nonbinding letter of intent with Germany-based health and life science company Sanity Group.
“With a well-established track record in Germany with respect to medical cannabis, finished pharmaceuticals, and cannabinoid-based consumer goods, High Tide believes that Sanity Group is the best-positioned potential partner in its home market of Germany,” High Tide said in the release.
The deal calls for the business to work together on:
- Go-to-market strategies.
- Identification of M&A opportunities.
- Sourcing of high-quality real estate.
- Expansion within European markets.
- Regulatory compliance topics such as licensing and government outreach.
High Tide also reported its annual figures for the year ended Oct. 31, 2022:
- Revenue rose 97% over the previous year to CA$356.9 million in 2022.
- Adjusted EBITDA increased 17% year-over-year to CA$14.6 million.
- Net loss on the year was CA$70.8 million.
- Data sales soared to CA$21.7 million for the fiscal year, compared with CA$12.2 million one year earlier.
- Cash on hand amounted to CA$25.1 million as of the end of the financial year.
High Tide trades as HITI on the Nasdaq and the TSX Venture Exchange.