High Tide Inc. (TSXV: HITI) shared on Thursday its preliminary unaudited financial statements for fiscal Q4 and full-year 2021 ending October 31, 2021. The results highlighted an annual revenue of $181.1 million, up from fiscal 2020’s $83.3 million.
“Due to personnel challenges arising from the pandemic, the Company has not been able to finalize its income tax provision to date,” the firm explained. Full set of financial statements is expected to be released on or before January 31, 2022.
Breaking down the topline revenue figure, $150.5 million of the revenue came from Canadian operations while $29.7 million came from the United States and $0.9 million from other international markets.
However, gross margin fell to 35% this year from 37% last year, which the company points to the discount club model for its retail stores launched in October 2021 that contributed to the decline.
Total operating expenses for the year came in at $79.2 million, which is larger than the gross profit of $64.0 million; thus, the firm is likely to end with a net loss. This compares to operating expenses of $30.0 million incurred against a gross profit of $30.8 million last year.
However, the company reported an adjusted EBITDA of $12.4 million this year, up from the previous year’s $8.0 million.
For fiscal Q4 2021, revenue generated is at $53.9 million, up from Q3 2021’s $48.1 million and Q4 2020’s $24.9 million. Quarterly operating expenses of $1`9.0 million also came in higher than the corresponding gross profit of $17.6 million, which points to a possible net loss just like the previous quarter’s loss of $1.7 million.
At the end of the quarter, adjusted EBITDA came in at $1.6 million, up from $1.5 million last quarter but down from $3.6 million last year.
In fiscal 2022, the cannabis firm estimates to record at least $70 million in revenue for the first quarter, projecting an annual run rate of $280 million. It also intends to further expand its retail network to at least 150 locations, with a primary focus in Ontario.
High Tide last traded at $5.04 on the TSX Venture.
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