Canadian cannabis retailer High Tide posts sequential revenue growth

Canadian cannabis retail chain High Tide Inc. reported revenue of 23.2 million Canadian dollars ($17.6 million) for the quarter ended July 31, an 18.6% increase over the previous quarter’s revenue.

Three-quarters of High Tide’s income for the quarter was earned in Canada, where the company currently operates 37 cannabis retailers in Ontario, Alberta and Saskatchewan under the Canna Cabana and KushBar banners.

Twenty-three percent of High Tide’s quarterly revenue came from the United States, where it operates e-commerce platforms Grasscity.com and CBDcity.com, as well as cannabis accessory distributors Famous Brandz and RGR.

The Calgary, Alberta-based company reported net income of nearly CA$4.3 million for the quarter.

High Tide is currently working to open up to eight Canna Cabana retailers in British Columbia, and is evaluating other Canadian jurisdictions including Manitoba, the Northwest Territories, and Yukon Territory, according to a regulatory filing.

However, the company has identified Ontario as its “largest and strategically most important market,” and plans to open four Canna Cabana locations in the province by the first quarter of 2021, with more throughout the year.

High Tide is due to become Canada’s largest single cannabis retailer after completing its acquisition of competitor Meta Growth Corp.

Meta Growth and another large Canadian cannabis retail chain, Fire and Flower, posted quarterly earnings earlier this week.

Shares of High Tide trade on the Canadian Securities Exchange as HITI.