High Tide Inc. ( NASDAQ: HITI ) extended Wednesday's after-hours gains into the pre-market trading as Wall Street reacted to the Canadian Cannabis retailer's Q3 fiscal 2022 financials, which indicated an accelerating topline growth with a nearly a two-fold rise in revenue from last year.
Driven by a ~46% YoY rise in same-store sales, the revenue for the quarter jumped ~98% YoY to C$ $95.4M expanding the ~89% YoY growth recorded in the past two quarters. Adding C$80.7M with ~110% YoY growth, Canada led the topline growth, followed by C$12.7M from the U.S., which posted ~33% YoY growth.
Sequentially, revenue increased ~18%, and same-store sales rose ~18% as the company continued to benefit from the launch of the discount club model at the end of Q4 fiscal 2021.
While gross profit rose ~54% YoY to C$25.8M, gross profit margin slumped to ~27% from ~35% in the prior year-year quarter, which the company attributed to the change in retail pricing strategy with the launch of the discount club model.
While gross margins held relatively steady from the previous quarter, the adj. EBITDA grew ~176% YoY to C$4.2M even as the net loss for the quarter jumped ~55% YoY to ~C$2.7M. The cash level stood at C$18.3M at the end of the quarter, indicating a ~31% rise from Oct. 31, 2021.
Regarding the outlook, HITI remains on track to report over C$400M annual revenue run rate.
Go through the company's historical financials.
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High Tide gains as revenue growth accelerates in Q3