High Tide Inc.
For the period ended Oct 31, 2024. Filed Jan 29, 2025.
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The yearly report of certain Canadian companies, filed under a joint US and Canadian system. It is the main yearly account these companies give US investors, largely as filed in Canada.
FY2024 · Filed Jan 29, 2025
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Contents
EX-99.2 · Performance by operational segment:
Performance by operational segment:
High Tide Inc.
Management's Discussion and Analysis
For the years ended October 31, 2024 and 2023
(In thousands of Canadian dollars, except share and per share amounts or otherwise stated)
The following is a representation of these operational segments:
| Bricks and Mortar | Bricks and Mortar | E-commerce | E-commerce | Total | Total | |
|---|---|---|---|---|---|---|
| For the year ended October 31, | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| $ | $ | $ | $ | $ | $ | |
| Total revenue | 484,444 | 431,694 | 37,862 | 55,975 | 522,306 | 487,669 |
| Gross profit | 124,651 | 105,132 | 17,851 | 26,182 | 142,502 | 131,314 |
| Gross profit margin(i) | 26% | 24% | 47% | 47% | 27% | 27% |
| Income (loss) from operations | 12,180 | (9,034) | (7,177) | (32,391) | 5,003 | (41,425) |
| Adjusted EBITDA(ii) | 36,618 | 24,332 | 1,717 | 6,304 | 38,335 | 30,636 |
| Adjusted EBITDA margin(iii) | 8% | 6% | 5% | 11% | 7% | 6% |
| Bricks and Mortar | Bricks and Mortar | E-commerce | E-commerce | Total | Total | |
| As at October 31, | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| $ | $ | $ | $ | $ | $ | |
| Current assets | 75,161 | 59,301 | 10,628 | 9,344 | 85,789 | 68,645 |
| Non-current assets | 128,719 | 126,579 | 31,700 | 38,177 | 160,419 | 164,756 |
| Current liabilities | 56,741 | 51,001 | 4,739 | 7,136 | 61,480 | 58,137 |
| Non-current liabilities | 35,788 | 37,304 | 3,428 | 4,294 | 39,216 | 41,598 |
(i) Gross profit margin - a non-IFRS financial measure. Gross profit margin is calculated by dividing gross profit by revenue.
(ii)Adjusted EBITDA - a non-IFRS financial measure. A reconciliation of the Adjusted EBITDA to Net income (loss) is found under “Select financial highlights and operating performance" section on page 8.
(iii)Adjusted EBITDA margin - a non-IFRS financial measure. This metric is calculated as adjusted EBITDA divided by revenue.
Corporate overhead is allocated to bricks and mortar and e-commerce on a percentage of revenue based on the year ended October 31, 2024, 93%, bricks and mortar and 7% e-commerce (October 31, 2023 - 87% bricks and mortar and 13% e-commerce)
Bricks and mortar performance
| Three months ended October 31 | Year months ended October 31 | |||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | Change | 2024 | 2023 | Change | |
| $ | $ | ∆ | $ | $ | ∆ | |
| Cannabis and CBD products | 116,313 | 106,616 | 9% | 435,642 | 394,411 | 11% |
| Consumption accessories | 3,383 | 2,456 | 38% | 12,764 | 9,953 | 28% |
| Data analytics, advertising and other revenue | 10,826 | 7,338 | 48% | 36,038 | 27,330 | 32% |
| Total revenue | 130,522 | 116,410 | 12% | 484,444 | 431,694 | 12% |
| Cost of goods sold | 99,213 | 88,963 | 12% | 359,793 | 326,562 | 10% |
| Gross profit | 31,309 | 27,447 | 14% | 124,651 | 105,132 | 19% |
| Gross profit margin(i) | 24% | 24% | 1% | 26% | 24% | 1% |
| Operating expenses | 25,863 | 27,761 | (7)% | 112,471 | 114,166 | (2)% |
| Income (loss) from operations | 5,446 | (314) | 1834% | 12,180 | (9,034) | 235% |
| Depreciation and amortization | 3,898 | 7,159 | (46)% | 21,664 | 28,910 | (25)% |
| Share-based compensation | 723 | - | —% | 2,774 | 4,456 | (38)% |
| Adjusted EBITDA(i) | 10,067 | 6,845 | 47% | 36,618 | 24,332 | 51% |
| Adjusted EBITDA margin(i) | 8% | 6% | 2% | 8% | 6% | 2% |
(i) Gross profit margin, adjusted EBITDA and adjusted EBITDA margin are non-IFRS measures
For the year ended, October 31, 2024, the Company’s bricks and mortar segment demonstrated revenue growth with total revenue increasing by 12% to $484,444 as compared to $431,694 for the year ended October 31, 2023.
High Tide Inc.
Management's Discussion and Analysis
For the years ended October 31, 2024 and 2023
(In thousands of Canadian dollars, except share and per share amounts or otherwise stated)
The total revenue growth is primarily attributable to continued same-store sales growth and new stores build outs. The Company went from 157 stores to 186 stores during the year ended October 31, 2024. As of October 31, 2024 year, 186 stores were operational, and same store sales increased by 5% as compared to the same period ended October 31, 2023.
For the year ended October 31, 2024 the Company recognized $36,038, in revenue generated from its proprietary data analytics service named 'Cabanalytics Business Data and Insights Platform' and other revenues which are 32% higher than the same period of 2023 at $27,330. The Cabanalytics Business Data and Insights Platform provides subscribers with a monthly report of anonymized consumer purchase data, in order to assist them with forecasting and planning their future product decisions and implementing appropriate marketing initiatives.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.