High Tide (HITI)2025-01-30 20:59Financial Data and Key Metrics Changes - Revenue for the fiscal year reached an all-time high of 138.3 million, marking a 9% year-over-year increase and the fastest growth rate of the year [10][40] - Free cash flow for fiscal 2024 was 5.9 million, up 4% year-over-year [13][47] Business Line Data and Key Metrics Changes - The bricks-and-mortar segment grew 12% year-over-year, significantly outperforming expectations [40] - Same store sales rose 3% sequentially in Q4, with a cumulative increase of 130% since launching the discount club model three years ago [24][70] - Cabanalytics data and advertising revenue totaled 2.6 million, more than double the average peer revenue [27] Company Strategy and Development Direction - The company plans to add another 20 to 30 locations in 2025, continuing its organic growth strategy [12][90] - The acquisition of a majority stake in Purecan aims to establish a foothold in the growing German medical cannabis market [19][50] - The global expansion of the Cabana Club is expected to enhance customer loyalty and sales [15][42] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about continued top-line growth in 2025, despite competitive pressures in the Canadian market [13][37] - The company is focused on maintaining gross margins while navigating a challenging retail landscape [31][68] - Management highlighted the potential for growth in the German market and other international opportunities [84][86] Other Important Information - The company ended the fiscal year with a record cash balance of 27 million [48][49] - General and administrative expenses decreased from 5.5% in 2023 to 4.2% in 2024, demonstrating a commitment to cost efficiency [34][46] Q&A Session Summary Question: Market dynamics in Alberta and Ontario - Management confirmed no significant changes in retail dynamics in Alberta or Ontario, with minor adjustments due to revised data from Statistics Canada [55][56] Question: Investment in the German market - The acquisition of Purecan requires minimal CapEx, focusing primarily on working capital to facilitate operations [59][60] Question: Pricing strategies in Canada - Management indicated that pricing pressures persist, but they are maintaining gross margins due to strong performance and competitor struggles [68][72] Question: International e-commerce and hemp-derived THC market - The company is monitoring the hemp-derived THC market but is currently focused on core business opportunities and the Purecan acquisition [75][76] Question: Product offerings in Germany - Management plans to introduce a wide range of products, including Canadian brands and white label products, to establish a strong presence in the German market [81][82] Question: Appetite for expansion into other countries - Germany is seen as a gateway for further expansion into other European markets and Australia, with ongoing evaluations of opportunities [84][86] Question: Store openings in 2025 - The target of 20 to 30 new stores in 2025 will be achieved through organic growth, with any M&A activity being incremental [90][94]