High Tide Inc. (HITI) is poised for further expansion, particularly in Ontario, after a record-setting quarter in revenue and adjusted EBITDA. The company plans to open 20 to 30 new stores in 2024 through organic builds and acquisitions while focusing on high-quality real estate and strategic M&A. High Tide remains confident in its financial profile and position in the market, looking to expand further in Canada and international markets, including Germany and the US. The company’s same store sales have surged 110% since introducing the discount club concept, with the average store generating $2.2 million in Alberta and $3.6 million in annualized run rates in Ontario. The company experienced a noncash impairment charge of $34.3 million due to a slowdown in e-commerce but remains strong in its core Canadian brick-and-mortar business. High Tide’s CEO, Raj Grover, emphasized the focus on organic growth, high-quality real estate, and strategic M&A over share buybacks. High Tide’s strategy includes targeting locations in Mississauga, North Bay, Kingston, St. Catharines, Pickering, Oshawa, and Brampton for expansion, with a clear strategic vision for growth underpinned by strong financial performance and a commitment to capitalizing on market opportunities. The company has been making waves in the cannabis industry with significant revenue growth, stable gross margins, and strong cash flow generation. The market will keep a close eye on High Tide’s growth trajectory and future performance. The main focus for High Tide is to remain cash flow positive while managing its costs efficiently and pursuing strategic growth opportunities in key markets. Expansion plans in Ontario and other regions demonstrate the company’s commitment to long-term success and market leadership in the burgeoning cannabis industry. High Tide is staying attuned to the regulatory landscape and continues to leverage its strengths to drive sustained growth and profitability.
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Written by: Yasin Ebrahim
Published on February 2, 2024 at 11:26AM
Source: Investing.com Australia (opens in new tab)