- High Tide (CSE:HITIF) has announced a 173 per cent year-on-year profits boost for 2020’s first quarter
- Gross profits increased by 167 per cent for the period ending January 31, 2020
- The three-month period was High Tide’s best ever quarterly performance
- The company is about to open seven more stores in Ontario
- High Tide (CSE:HITIF) is trading up 12.5 per cent at $0.135 per share, with a market cap of $25 million
High Tide (CSE:HITIF) has announced a 173 per cent profits boost for the three month period ending January 31, 2020.
The Alberta-based cannabis retailer and manufacturer experienced the massive spike on the back of Christmas and holiday sales. Additional revenue growth through its data analytics service, Cabanalytics, also contributed.
Cabanalytics is a cannabis sales analysis software that records consumer preferences and behaviours.
The B2B service experienced significant growth in the quarter. All in all, the retailer did over half a million transactions throughout the period.
The company also acquired the remaining 49.5 per cent of KushBar Inc, making KushBar a wholly-owned subsidiary of High Tide.
High Tide also purchased interests in a number of Ontario cannabis stores, strengthening the company’s growing presence in the region.
Company financials across the board were strong. Gross profit for the first quarter went from $1,790 to $4,777 for the same 2019 period. This represents an increase of 167 per cent.
Adjusted EBITDA for the period grew by 84 per cent to negative $550 from negative $3338.
High Tide secured a $10,000 loan facility from Windsor Capital, to provide sufficient liquidity and operating capital for the near-term.
The company’s total working capital deficit was $11,086 compared to a surplus of $1,938 year-on-year.
High Tide put the change down to a convertible debt of $11,512 and related derivative liability of $3,245 maturing in less than 12 months as of January 31, 2020.
President and CEO, Raj Grover, said the company’s best ever quarterly results confirmed High Tide’s positive trajectory.
“The company’s significant year-over-year increases in revenue and gross profit, coupled with cost-cutting measures across the organisation, have helped narrow our loss from operations for the quarter by 60 per cent over the same period last year.
“For the remainder of this year, we will focus on furthering our expansion in Ontario, Canada’s largest and most underserved market. We expect to have an additional seven stores there by September 2020.
“With more Canna Cabana locations either under development or nearing completion in Alberta, we intend to grow our retail portfolio at a sustainable pace,” he said.
High Tide (CSE:HITIF) is up 12.5 per cent, and trading for $0.135 per share at 9:47am EST.