High Tide (US:HITI)2025-09-17 15:02High Tide Conference Call Summary Company Overview - Company Name: High Tide (NasdaqCM: HITI) - Ticker: HITI on NASDAQ since 2021 and TSX Venture Exchange since 2018 - Main Operating Company: Canna Cabana, the largest retail cannabis brand in Canada with over 207 stores [2][3] Financial Performance - Trailing Revenue: Approximately CAD 683 million, including recent acquisitions [2] - Adjusted EBITDA: CAD 58 million, with a pro forma trailing adjusted EBITDA multiple of 8.8 times [3] - Same-Store Sales Growth: Up 137% since October 2021, compared to a 2% decline for peers [4][14] - Market Share: 12% in the five provinces of operation, with a target to reach 15% [4][15] - Revenue per Square Foot: CAD 1,735, outperforming many blue-chip retailers [5][16] - Free Cash Flow: Generated CAD 4 million in July 2023, five months ahead of schedule [25][26] Recent Developments - Acquisition: Acquired 51% of Ramexian Pharma, a leading medical cannabis importer in Germany, for €26.4 million [19] - Market Expansion: Entering the German market, which has seen a significant increase in patient counts from 250,000 to 900,000 [20][21] - Growth in German Cannabis Imports: Annualized imports increased from CAD 30-40 million to CAD 300 million post-reclassification of medical cannabis [23] Strategic Insights - Retail Strategy: Focus on smaller, efficient store sizes (1,200 to 1,500 square feet) rather than larger stores [9][18] - Loyalty Program: 2.15 million loyalty members, with 115,000 ELITE members paying CAD 35 annually for additional discounts [4][12] - Consumer Preferences: Pre-rolls and dried flower account for about two-thirds of sales, with vapes at 22% [7][8] Market Context - Canadian Cannabis Market: Legalized in October 2018, now a CAD 5.5 billion market, with Canna Cabana's operations in a CAD 4.5 billion retail market [6] - Competitive Landscape: Canna Cabana's average store revenue significantly exceeds that of peers, with Alberta stores averaging CAD 2.3 million and Ontario stores over CAD 3.1 million [14][15] Future Outlook - Store Growth: Targeting to exceed 300 stores, with plans to open 20-30 new stores annually [27] - Vertical Integration: Exploring opportunities in cannabis accessories and white-label products, though full vertical integration is limited by regulations [34][36] - International Expansion: Monitoring other European markets (UK, Poland, Czech Republic, Switzerland) for potential entry [32] Key Takeaways - High Tide is positioned as a leading innovative retailer in the cannabis space, with strong financial metrics and growth potential in both Canada and Germany [41] - The company is leveraging its retail relationships to capitalize on the growing medical cannabis market in Germany, aiming for significant market share [42]