High Tide Inc (NASDAQ:HITI) stock fell 5.08% (As on June 14, 11:18:20 AM UTC-4, Source: Google Finance) after the company posted mixed result for the second quarter of FY24. Gross profit increased to $35.3 million in the second fiscal quarter of 2024 compared to $31.6 million during the same period in 2023, representing an increase of 12% year-over-year and (2)% sequentially, given this quarter had two fewer days. Gross profit margin in the three months ended April 30, 2024, was 28.4%, representing its highest level in the past nine quarters. This compares to 26.7% during the same period in 2023 and 28.1% sequentially. Adjusted EBITDA increased to $10.0 million in the second fiscal quarter of 2024, representing an increase of 52% year-over-year and (4)% sequentially. Adjusted EBITDA margin increased to 8.1% in the second fiscal quarter of 2024, compared to 5.6% during the same period in 2023. The Company generated positive net income of $0.2 million in the second fiscal quarter of 2024, which included a non-cash impact from depreciation of $7.5 million. Net income improved from $(1.6) million in the same period last year and compared to break-even sequentially.

Moreover, for locations operational throughout the second fiscal quarter of 2024 and 2023, same-store sales increased by 4% year-over-year. Given this quarter had two fewer days, same-store sales were (2%) sequentially. Calculated daily, same-store sales ticked slightly higher than the previous quarter. The Company notes that it significantly outperformed total cannabis industry retail sales across the five provinces where it operates, which were (4.4%) sequentially, including the impact of new store growth. The Company continued the rollout of ELITE, the first-of-its-kind cannabis paid loyalty program in Canada, with membership surpassing 44,000, representing an increase of 226% year-over-year and 38% since March 15, 2024, which is the fastest pace of onboarding since ELITE was launched in late 2022. Cash on hand as of April 30, 2024, totaled $34.5 million, an all-time record, compared to $22.5 million as of April 30, 2023, and $28.7 million as of January 31, 2024, representing an increase of 54% year-over-year and 20% sequentially

HITI in the second quarter of FY 24 has reported the adjusted break-even quarterly earnings per share, beating the analysts’ estimates for the adjusted loss per share of 1 cent, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 5 percent to $91.6 million in the second quarter of FY 24, missing the analysts’ estimates for revenue by 2.73%.