High Tide Inc. (Nasdaq: HITI) (TSXV: HITI) increased its revenue in both the fourth quarter and fiscal year 2023, but the Canada-based cannabis company still finished the year in the red with a C$40.9 million net loss, the company reported on Monday.
Most of those losses – C$31.8 million – were from the fourth quarter, which ended Oct. 31, 2023, and the company said in a press release that it had $34.3 million in goodwill impairment charges in those three months alone.
“Excluding the impact of these non-cash charges, the company generated positive income from operations in the fourth fiscal quarter of 2023,” High Tide reported.
The company was also bolstered by a 37% increase in revenue year-over-year, to C$487.6 million from C$356.8 million in the 2022 fiscal year. Revenue was also up 17% year-over-year for the quarter, to C$127.1 million from C$108.2 million.
CEO Raj Grover said the results from both the year and the fourth quarter “place us amongst an elite group of publicly traded cannabis companies anywhere to consistently generate meaningful amounts of free cash flow while continuing to grow our business.”
“Our operational prowess is starting to get noticed by the capital markets, as witnessed by the fact that High Tide closed 2023 as Canada’s top-performing cannabis stock,” Grover boasted.
Grover said he’s bullish heading into 2024, citing the possible federal rescheduling of cannabis in the U.S. and other international expansion opportunities such as in Germany.
“These global opportunities, combined with an improved regulatory environment across many Canadian provinces, gives me confidence that 2024 will be yet another stellar year for High Tide,” Grover said.
Free cash flow was up 40% sequentially to C$5.7 million in the fourth quarter from C$4.1 million in the third quarter, the company reported, and its current annual revenue run rate is nearing C$510 million.
High Tide also maintained its position as the largest non-franchised retailer in Canada in 2023 with 163 retail cannabis stores – including 10 that opened in the fourth quarter and the months following – and is targeting 300 shops long-term in its home nation.
The company’s loyalty program, the Cabana Club, also grew to 1.28 million members, up 35% year-over-year, including 28,000 paid memberships in its ELITE program.
High Tide closed its 2023 fiscal year with C$30.1 million in the bank and C$233.4 million in total assets against C$99.7 million in total liabilities.
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