High Tide Inc. (NASDAQ:HITI) released its 2022 financial results in January for the year ended October 31, 2022.
Here's a breakdown:
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Revenue increased by 97% year-over-year to CA$356.9 million ($265.4 million).
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Gross profit rose by 58% year-over-year to CA$101.0 million.
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Adjusted EBITDA hit a record of CA$14.6 million, up 17% versus the prior year.
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High Tide has entered into a non-binding letter of intent with the Berlin-based health and life science company, Sanity Group. The LOI is designed to leverage synergies between both complementary companies and position each to take advantage of potential German adult use legalization within their respective supply chain verticals.
The company completed its acquisition of 100% of the equity interest of 1171882 B.C. Ltd., operating as Jimmy's Cannabis Shop BC, in December.
The Analyst
Cantor Fitzgerald's Pablo Zuanic maintained a 'Neutral' rating on High Tide's stock, reducing the price target from CA$2.75 ($2.03) to $2.7.
The Thesis
Zuanic, who is a speaker at the April Cannabis Capital Conference in Miami, lowered the price target to address sectoral derating and industry challenges.
"High Tide continues to consolidate the Canadian retail industry, and management is pointing to >50% sales growth this calendar year on the back of 4-5% seq same-store sales growth, and by adding another 40-50 stores to its network," he said.
"Gross margins have rebounded since the launch of the discount strategy, and they could improve further given competitor attrition and also due to company initiatives. At 0.3x our FY23 (Oct) sales estimates and 6.3x EBITDA, the stock is seemingly attractively valued."
He pointed out that negative sentiment on the Canadian cannabis market tends to have an effect on the broader sector, with little differentiation between retail vs. LPs, or between operators, and that cannabis stocks tend to move in tandem with expectations about US federal-level reform.
"Investors must decide in which markets and parts of the value chain they want to invest," he said. High Tide could fit the bill of 'profitable sustainable moat' if it becomes the clear leader in Canada's cannabis retail space and shows EBITDA expansion."
Price Action
High Tide shares were trading 1.46% lower at $1.35 per share at the time of writing Monday mid-morning.
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High Tide公司(納斯達克:希臘語)於2022年1月發佈了截至2022年10月31日的年度財務業績。
這是一份細目:
收入同比增長97%,達到3.569億加元(2.654億美元)。
毛利潤同比增長58%,達到1.01億加元。。
調整後的EBITDA達到創紀錄的1,460萬加元,同比增長17%。
High Tide與總部位於柏林的健康和生命科學公司Sanity Group簽署了一份不具約束力的意向書。意向書旨在利用兩家互補公司之間的協同效應,並定位每一家公司,以利用各自供應鏈垂直領域內潛在的德國成人使用合法化。
去年12月,該公司完成了對1171882 B.C.Ltd.股權的100%收購,該公司以吉米大麻商店BC的名義運營。
《分析師》
康託·菲茨傑拉德的巴勃羅·祖阿尼克對新浪High Tide的評級維持為中性,將其目標價從2.75加元(合2.03美元)下調至2.7美元。
這篇論文是
祖阿尼克是4月份在邁阿密舉行的大麻資本會議上的演講者,他下調了目標價格,以應對部門降級和行業挑戰。
他說:“High Tide繼續整合加拿大零售業,管理層預計,在同店銷售額增長4-5%的基礎上,今年同店銷售額將增長50%以上,並在其網路中再增加40-50家門店。”
自推出折扣戰略以來,毛利率已經反彈,考慮到競爭對手的流失以及公司的舉措,毛利率可能會進一步提高。以我們23財年(10月)銷售額預期的0.3倍和EBITDA的6.3倍計算,該股的估值似乎很有吸引力。
他指出,對加拿大大麻市場的負面情緒往往會對更廣泛的行業產生影響,零售與有限合夥人之間或運營商之間幾乎沒有區別,大麻庫存往往與對美國聯盟層面改革的預期同步變動。
“投資者必須決定他們想要投資於哪些市場和價值鏈的哪些部分,”他說。如果High Tide成為加拿大大麻零售領域的領先者,並顯示出息稅前利潤的擴張,它可能符合‘有利可圖的可持續護城河’的要求。“
價格行動
截至週一上午10點左右,新浪High Tide股價下跌1.46%,至每股1.35美元。
Benzinga的大麻首都會議回來了
世界上最成功的大麻商業活動,本辛加大麻之都大會,回到邁阿密舉行第16屆。這是達成交易、籌集資金、開始並購、公司會見投資者和關鍵合作夥伴的地方。4月11日至12日,歡迎入住佛羅裡達州楓丹白露邁阿密海灘酒店。不要錯過。現在請確保您的機票安全。物價很快就會上漲。
蒂姆·福斯特在Unspash上的照片