High Tide (TSE: HITI), a retail-focused cannabis company with bricks-and-mortar and global e-commerce assets, announced its unaudited 2021 year-end financial results after the closing bell on January 27.
Revenue & Earnings
Revenue increased 118% to C$181.1 million for the Fiscal Year ended October 31, 2021, and increased sequentially 12% to C$53.9 million in the fourth quarter of 2021.
Gross profit increased 108% to C$64.0 million in FY 2021, and increased sequentially 5% to C$17.6 million in Q4 2021.
Adjusted EBITDA reached a record C$12.4 million for the full year and C$1.6 million for the fourth quarter.
Cash as of October 31, 2021, totaled C$14 million, compared to C$7.5 million as of October 31, 2020.
CEO Commentary
High Tide President and CEO Raj Gover said, “2021 was a very special year for our growth as we further extended and strengthened our bricks and mortar footprint as well as our online retail ecosystem as we rapidly grew our business across all three of the segments we operate in: THC, CBD and consumption accessories.
“Our continued growth in THC sales is especially impressive given the increasingly competitive Canadian retail landscape. With the launch of our innovative discount club model, which is the first of its kind in North America and is tailored to our Company’s retail ecosystem, we continue to rapidly gain Canadian retail market share.”
High Tide expects to generate revenue for the first Fiscal Quarter of 2022 in excess of C$70 million. To date, it would be the third-highest quarterly revenue by a Canadian cannabis company.
Wall Street’s Take
On January 8, Echelon Wealth Partners Andrew Semple kept a Buy rating on HITI, with a price target of C$18. This implies 257% upside potential.
The consensus among Wall Street analysts is that HITI is a Strong Buy based on three Buys and one Hold. The average High Tide price target of C$13.88 implies 164.4% upside potential to current levels.
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