High Tide’s (HITI) revenue almost doubled in its second quarter, but its loss widened. The financial results include the acquisition of META Growth on November 18, 2020, and Smoke Cartel on March 24, 2021. Shares gained more than 2% in early trading on Tuesday morning.
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Revenue came in at C$40.9 million in Q2 2021, an increase of 99% from C$20.6 million in Q2 2020.
Gross profit increased 93% to C$15.0 million in the quarter ended April 30, 2021, from C$7.8 million in the prior-year quarter.
Meanwhile, Adjusted EBITDA was C$4.7 million in the quarter, compared to C$1.8 million a year ago. Net loss widened to C$12.3 million (-C$0.02 per share) in Q2 2021 from C$4.9 million (-C$0.02 per share) in Q2 2020.
High Tide’s President and CEO Raj Grover said, “Even during this difficult market environment, we continued to advance our bricks and mortar and online business. Despite the challenges and our continued rapid growth, we were able to increase not only our revenue, but also our Adjusted EBITDA sequentially to a new record of $4.7 million. This is a clear testament to the strength of our operations and our management team’s ability to outperform in tougher markets. It also highlights the robustness of our unique and diversified ecosystem which includes omni-channel retail of cannabis, consumption accessories and hemp derived CBD products as well as manufacturing and distribution of licensed and proprietary consumption accessories.”
Mr. Grover added that Ontario has now decided to allow in-store purchases with capacity limits that should boost sales. Coupled with the company’s recent acquisitions of FABCBD and Daily High Club, he expects continued revenue and EBITDA growth in the third quarter.
High Tide plans to increase the number of its stores in Ontario from 18 to 30 by September 30, 2021. It also plans to enter the British Columbia market in the coming months. (See High Tide stock chart on TipRanks)
Last month, Echelon Wealth Partners analyst Andrew Semple maintained a Buy rating on High Tide with a C$20.00 price target. This implies 95.9% upside potential.
Andrew Semple is the only analyst to have offered a rating for High Tide stock in the past three months. Shares have gained approximately 165% year-to-date.
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