Canada-based High Tide Inc. (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA) pulled in record revenue of C$124.4 million and free cash flow of C$4.1 million, but still posted a C$3.5 million loss in its third quarter, which ended July 31.
The news follows a sequential trend of High Tide growing its footprint but being unable to break into the black.
Still, CEO Raj Grover was “thrilled to report that our third fiscal quarter was the best in High Tide’s history since our inception,” the executive said in a press release, citing the free cash flow numbers, a goal the company met five months ahead of schedule.
Grover attributed that to “continued increases in our same-store sales growth, which have continuously outpaced the national average and totalled a tremendous 114% over the last seven quarters.”
Grover added that High Tide is eyeballing possible expansions into the U.S. and Germany, with both nations poised to enact federal cannabis reform that may open up market opportunities for Canadian companies.
“We are highly confident we’ll be able to move swiftly into the U.S. with our tried, tested and perfected, innovative discount club model” if the opportunity presents itself through rescheduling by the Biden administration, Grover said.
Revenues were up 30% year-over-year from C$93.3 million the same period a year prior, and are at C$360 million for the fiscal year so far, High Tide reported. But with the increase in revenue has also come an increase in losses – net losses were up 32% from C$2.7 million in Q3 from a year ago.
During the third quarter, High Tide’s Cabana Club loyalty program continued attracting new members, with more than 1.1 million registrants as of September, up from 750,000 a year ago. High Tide continued ramping up its new paid loyalty program, ELITE, which thus far has 18,800 members, up by 5,300 from June.
On the retail side, High Tide opened two more shops in Canada during Q3, one in Alberta and another in Ontario, bringing its nationwide footprint to 156 dispensaries.
In August, Sergio Patino was appointed CFO.