High Tide Inc (HITI) 2025 Q2 法說會逐字稿

Good morning. My name is Angeline, and I will be your conference operator today. At this time, I would like to welcome everyone to the High Tide second-quarter 2025 financial results conference call. (Operator Instructions) Thank you.

早安.我叫安吉琳 (Angeline)，今天我將擔任您的會議接線生。現在，我歡迎大家參加 High Tide 2025 年第二季財務業績電話會議。（操作員指示）謝謝。

Mr. Brownlee, you may begin your conference.

布朗利先生，您可以開始您的會議了。

Thank you, Angeline. Good morning, everyone, and welcome to High Tide Inc.'s quarterly earnings call. Please note that all earnings discussed on this call are presented on an unaudited basis. Joining me on the call today are Mr. Raj Grover, President and Chief Executive Officer; and Mr. Mayank Mahajan, Chief Financial Officer. On June 16, 2025, the company released unaudited financial and operational results for the fiscal quarter that ended April 30, 2025.

謝謝你，安吉琳。大家早安，歡迎參加 High Tide Inc. 的季度財報電話會議。請注意，本次電話會議討論的所有收益均未經審計。今天與我一起參加電話會議的還有總裁兼執行長 Raj Grover 先生和財務長 Mayank Mahajan 先生。2025年6月16日，公司公佈了截至2025年4月30日的財政季度未經審計的財務和營運表現。

Before we begin, please let me remind you that during the course of this conference call, High Tide's management may make statements, including with respect to management's expectations or estimates of future performance. All such statements other than statements of historical facts constitute forward-looking information or forward-looking statements within the meaning of the applicable securities laws and are based on assumptions, expectations, estimates and projections as of the date hereof.

在我們開始之前，請允許我提醒您，在本次電話會議期間，High Tide 的管理層可能會發表聲明，包括有關管理層對未來業績的預期或估計。除歷史事實陳述之外的所有此類陳述均構成適用證券法含義內的前瞻性資訊或前瞻性陳述，並基於截至本文發布之日的假設、預期、估計和預測。

Specific forward-looking statements include without limitation, all disclosures regarding future results of operations, economic conditions and anticipated courses of action. For more information on the company's risks and uncertainties related to forward-looking statements, please refer to the company's press release dated June 16, 2025, and our latest annual information form and our latest management discussion and analysis each filed with securities regulatory authorities at sedar.ca or an EDGAR at www.sec.gov/edgar, or on the company's website at www.hightideinc.com and which are hereby incorporated by reference herein.

具體前瞻性陳述包括但不限於有關未來營運績效、經濟狀況及預期行動方針的所有揭露。有關公司前瞻性陳述所涉及的風險和不確定性的更多信息，請參閱公司於 2025 年 6 月 16 日發布的新聞稿以及我們最新的年度信息表和最新的管理層討論與分析，這些文件均已提交給證券監管機構 sedar.ca 或 EDGAR www.sec.gov/edgar，或公司網站 www.hightideinc.com，並特此引用，並特此特此。

(technical difficulty) statements reflect management's current beliefs and reasonable assumptions based on the currently available information to management as of the date hereof, we cannot be certain that the actual results will be consistent with the forward-looking statements in the future. There can be no assurance that actual outcomes will not differ materially from these results.

（技術難度）陳述反映了管理層當前的信念以及基於截至本文發布之日管理層當前可獲得的資訊的合理假設，我們無法確定未來的實際結果是否與前瞻性陳述一致。無法保證實際結果不會與這些結果有重大差異。

Accordingly, we caution you to not place undue reliance upon such forward-looking results. For any reconciliation of non-IFRS measures measured and discussed please consult our latest management discussion and analysis filed on SEDAR+ and EDGAR.

因此，我們提醒您不要過度依賴此類前瞻性結果。任何非國際財務報告準則衡量和討論指標的調節，請參閱我們在 SEDAR+ 和 EDGAR 上提交的最新管理討論和分析。

It is now my pleasure to introduce Mr. Raj Grover, President and Chief Executive Officer of High Tide. Thank you, Mr. Grover, you may begin.

現在我很高興介紹 High Tide 總裁兼執行長 Raj Grover 先生。謝謝您，格羅佛先生，您可以開始了。

Thank you, Carter, and good morning, everyone. Welcome to High Tide Inc.'s financial results conference call for the second fiscal quarter that ended April 30, 2025. I'll begin with some high-level comments about the quarter and our strategy before Mayank dives deeper into the numbers. Another quarterly conference call, and I'm pleased to report yet another set of impressive industry-leading milestones for High Tide.

謝謝你，卡特，大家早安。歡迎參加 High Tide Inc. 截至 2025 年 4 月 30 日的第二財季財務業績電話會議。在 Mayank 深入探討這些數字之前，我將首先對本季和我們的策略發表一些高層評論。在另一個季度電話會議中，我很高興地報告 High Tide 又一組令人印象深刻的行業領先里程碑。

Since 2018, we've been growing Canna Cabana steadily month in, month out regardless of where we happen to be in the cannabis or capital market cycle. We kept our laser-like focus on expansion but doing so smartly and efficiently. While so many of our competitors fell by the wayside, last month, we announced the opening of our 200th Canna Cabana in Sherwood Park, Alberta, a tremendous milestone. Canna Cabana is clearly the leader in Canada, not only by the sheer number of stores operated under any one banner, but also by the top line and cash flows that our brand is able to generate.

自 2018 年以來，無論我們處於大麻或資本市場週期的哪個階段，我們都在逐月穩步發展 Canna Cabana。我們全神貫注於擴張，但做得聰明而有效。儘管我們的許多競爭對手都已倒下，但上個月，我們宣佈在阿爾伯塔省舍伍德公園開設第 200 家 Canna Cabana，這是一個重要的里程碑。Canna Cabana 顯然是加拿大的領導者，不僅因為我們旗下經營的商店數量眾多，還因為我們品牌能夠產生的營業額和現金流。

While having a much smaller war chest than some of our better capitalized peers, we've been disciplined and relentless in building not only the largest cannabis retail brand in Canada, but the second largest in the world, which is something I'm incredibly proud of. Indeed, our approach has been thriving while the rest of the industry has largely been struggling or slowing down.

雖然我們的資金比一些資本更雄厚的同行少得多，但我們始終嚴謹不懈，不僅打造了加拿大最大的大麻零售品牌，而且成為了世界第二大大麻零售品牌，對此我感到無比自豪。事實上，當整個行業大部分都在苦苦掙扎或放緩時，我們的方法一直在蓬勃發展。

For example, with the opening of our Sherwood Park location, we now have 87 stores in our home province of Alberta. Our provincial store count is up 10% versus a year ago, while the rest of the industry combined has contracted 6% during this time.

例如，隨著舍伍德公園店的開業，我們現在在阿爾伯塔省擁有 87 家門市。與去年同期相比，我們省級門市數量增加了 10%，而同期其他行業門市總數卻萎縮了 6%。

In Ontario, where we still see the most growth ahead, we have 82 stores today. Over the past 12 months, we have increased the size of our footprint by 30% in what we consider to be fantastic locations. In contrast, at the same time, the rest of the industry combined has shrunk by 1% in this province. I'm very excited to see how strongly the 19 new Ontario stores will perform when they mature over the coming periods.

在安大略省，我們仍然認為該地具有最大的成長潛力，目前我們在該地擁有 82 家門市。在過去的 12 個月中，我們在我們認為非常棒的地點將業務範圍擴大了 30%。相比之下，同一時期該省其他行業合計萎縮了1%。我非常高興地看到安大略省的 19 家新店在未來一段時間內成熟後將有多麼強勁的表現。

It is also worth pointing out that this retail foundation we've built has been mostly organic as opposed to simply throwing money at competitors to make them go away. (inaudible) stellar -- enviable real estate relationships, we've been able to pinpoint the micro markets in specific locations we want to be in and build winning stores where we want them as opposed to inheriting other decisions.

另外值得指出的是，我們建立的零售基礎大部分是有機的，而不是簡單地向競爭對手投入資金以使他們消失。 （聽不清楚）出色——令人羨慕的房地產關係，我們已經能夠精確定位我們想要進入的特定位置的微型市場，並在我們想要的地方建立成功的商店，而不是繼承其他決策。

Frankly, when I look at our peers, even the few that have still made gains in store counts, they have often almost exclusively been via acquisition. In contrast, given the quality and depth of our pipeline, we can still grow meaningfully organically even when M&A activity is slower. It also means we aren't in pressure to act on marginal deals or chase considerably higher prices that some are willing to pay. Our real estate team is a fine-tuned machine.

坦白說，當我觀察我們的同行時，即使是少數在門市數量上仍然取得成長的公司，他們的成長幾乎完全是透過收購實現的。相較之下，鑑於我們通路的品質和深度，即使併購活動放緩，我們仍然可以實現有意義的有機成長。這也意味著我們不會迫於壓力而採取邊際交易或追逐一些人願意支付的相當高的價格。我們的房地產團隊是一台精密的機器。

We're able to get coveted access to Tier 1 locations across the country and pay for construction of new sites from cash flows from our existing base of stores. I can confirm that we have more than a dozen stores currently in our construction pipeline. We can build our stores for an average of $260,000 in hard CapEx and for about $400,000 all in with working capital and inventory investments and be up and running relatively quickly without paying a multiple.

我們能夠獲得令人垂涎的全國一級門市的使用權，並利用現有門市的現金流來支付新店的建設費用。我可以確認，我們目前正在籌建十多家商店。我們建造商店的平均硬資本支出為 260,000 美元，加上營運資金和庫存投資，總共只需約 40 萬美元，而且可以相對快速地投入運營，無需支付多倍費用。

Granted that newer stores take longer to ramp up to maturity given heightened competition versus prior years given the track record we have, even in heavily saturated markets, we're confident that they will all get there, which will ultimately yield superior ROI for shareholders. We've been very disciplined. It takes a lot of effort to build this network, but we aren't scared of putting in maximum effort to create value for our shareholders.

鑑於我們以往的業績記錄，考慮到與前幾年相比競爭更加激烈，新店需要更長的時間才能成熟，即使在高度飽和的市場中，我們也相信它們都將實現目標，最終將為股東帶來更高的投資回報率。我們一直都非常自律。建立這個網絡需要付出很多努力，但我們不怕付出最大的努力為股東創造價值。

Our stated goal was to add another 20 to 30 locations during this calendar year. We're tracking well with the 9 we have already opened year-to-date and with more than a dozen currently at various (inaudible) of development. Should we enter into any M&A transaction would have to be attractive and accretive and would be supplemental to our proven (inaudible). The beauty of our model with proven returns on investment is showing up in our same-store sales.

我們的既定目標是今年內再增加 20 至 30 個地點。今年迄今，我們已經開設了 9 家門市，目前還有十幾家門市處於不同（聽不清楚）的開發階段，進展順利。如果我們進行任何併購交易，交易必須具有吸引力和增值性，並補充我們已證實的（聽不清楚）。我們的模式的優點在於其投資報酬率已得到證實，這一點已在我們的同店銷售額中得到體現。

In Q2, our daily same-store sales were up 6.2% year over year, which was the fastest rate in 5 quarters. Our model has been a huge outperformer over the long term as well. From October 2021 to March 2025, our same-store sales have increased an incredible 132% while the average operator has seen a 10% drop in sales during the same time period. We look forward to continuing to scale our proven model in the years ahead and surpassing 300 stores across Canada.

第二季度，我們的日同店銷售額年增6.2%，這是5個季度以來的最快增速。從長期來看，我們的模型也表現出色。從 2021 年 10 月到 2025 年 3 月，我們的同店銷售額成長了驚人的 132%，而同期普通業者的銷售額卻下降了 10%。我們期待在未來幾年繼續擴大我們成熟的模式，並在加拿大開設超過 300 家門市。

Our success is also showing up via market share gains, which climbed to 12 (inaudible) where we operate in February and March, up from 11% previously. This is quite the feat when you consider that Canna Cabana only represents 6% of the total store count in these provinces. In March, our average store achieved an annual revenue run rate of $2.6 million, which is 2.3 times the average annualized peer revenue of $1.1 million in the provinces where we operate. In Ontario, our largest market and the focus of our future expansion, our outperformance was even more pronounced.

我們的成功也體現在市場佔有率的成長上，2 月和 3 月我們的市佔率從之前的 11% 攀升至 12（聽不清楚）。如果考慮到 Canna Cabana 僅佔這些省份門市總數的 6%，那麼這已經是一個了不起的成就了。3 月份，我們平均每家門市的年收入運作率為 260 萬美元，是我們經營所在省份同業平均年收入 110 萬美元的 2.3 倍。安大略省是我們最大的市場，也是我們未來擴張的重點，我們的表現更加出色。

Excluding newer stores that have been opened for six months or less, which are still ramping up, the average Canna Cabana store was under $3.2 million annual revenue run rate in March. This was triple the average of our peers in Ontario at just $1.1 million. Our innovative discount club model is fueled by our unique Cabana loyalty program, which is the largest of its kind in all of cannabis. Our Cabana Club membership base has reached 1.9 million across Canada, up 33% or 470,000 consumers year-over-year and 8% sequentially.

不計開業六個月或更短時間且仍在擴張的新店，Canna Cabana 商店 3 月份的平均年收入低於 320 萬美元。這是我們安大略省同行平均（僅 110 萬美元）的三倍。我們創新的折扣俱樂部模式由我們獨特的 Cabana 忠誠度計劃推動，該計劃是整個大麻領域中規模最大的忠誠度計劃。我們的 Cabana Club 會員數已達加拿大 190 萬，年增 33% 或增加 47 萬名消費者，季增 8%。

We're making great progress towards our goal of reaching 2.5 million members across the country. (inaudible) suggested at our -- here wouldn't work that no one would pay to be a member to buy cannabis. Our team worked hard and boy did we prove them wrong. We led with our unique edge and accessories, leveraged our scale and white label products and our marketing team kept devising new and compelling compliant promotions.

我們正在朝著覆蓋全國 250 萬會員的目標邁進。 （聽不清楚）我們建議－這裡行不通，沒有人會花錢成為會員來購買大麻。我們的團隊努力工作，最終證明他們錯了。我們以獨特的優勢和配件佔據領先地位，利用我們的規模和白標產品，我們的行銷團隊不斷設計新的、引人注目的合規促銷活動。

And here we are, ELITE, our paid membership tier has now reached 97,000 members across Canada, up 120% year-over-year and 20% sequentially. This was once again the (inaudible) have ever experienced, (inaudible) lead members total ELITE members across the Cabana Club globally. Also, a special congratulations to our Elite member in Winnipeg, who was the lucky winner of the $100,000 cash giveaway contest we held on FOUR20.

現在，我們 ELITE 付費會員等級已覆蓋加拿大各地 97,000 名會員，年增 120%，季增 20%。這又是（聽不清楚）有史以來最偉大的一次，（聽不清楚）引領了全球 Cabana Club 的精英會員總數。此外，特別祝賀我們在溫尼伯的精英會員，他是我們在 FOUR20 上舉辦的 10 萬美元現金贈送比賽的幸運獲勝者。

There is no question that Canna Cabana is becoming a household name, which has solidified the loyalty loop with our customers. We have long believed that competitor store closures would accelerate, and this is now happening, which benefits our existing stores. Putting all these parts together has resulted in us now reporting trailing revenue of more than $550 million for the first time in our history.

毫無疑問，Canna Cabana 正在成為家喻戶曉的品牌，這鞏固了我們與客戶的忠誠度。我們一直認為競爭對手的門市關閉速度會加快，現在這種情況正在發生，這對我們現有的門市有利。綜合以上所有因素，我們現在報告的過去收入在歷史上首次超過 5.5 億美元。

Our bricks-and-mortar business, which represents 97% of our consolidated revenue is clearly firing on all cylinders and up a very impressive 16% year-over-year. Clinically, it is a fairly negligible business unit as it only represented 3% of our consolidated revenue in the quarter. While we still have six months to reach our previously stated goal of getting to EBITDA neutral, it is proving to be a challenge.

我們的實體業務占我們綜合收入的 97%，顯然正在全力發展，年比成長了 16%，非常令人印象深刻。從臨床角度來看，這是一個相當微不足道的業務部門，因為它僅占我們本季綜合收入的 3%。雖然我們還有六個月的時間來實現先前提出的 EBITDA 中性的目標，但事實證明這是一個挑戰。

We continue to view e-commerce as having strategic value, particularly because it helps us build our customer database in Europe and the United States, which we can leverage further upon regulatory reform in these jurisdictions. That said, we are flexible and open to considering all eventualities regarding this business unit. We will do whatever it takes to maximize value for shareholders.

我們繼續認為電子商務具有戰略價值，特別是因為它幫助我們在歐洲和美國建立客戶資料庫，我們可以在這些司法管轄區的監管改革後進一步利用這些資料庫。話雖如此，我們仍然保持靈活和開放的態度，並願意考慮與該業務部門有關的所有可能發生的情況。我們將盡一切努力為股東實現價值最大化。

I note that despite e-commerce weakness, our bricks-and-mortar franchise is so strong, we were able to increase our consolidated adjusted EBITDA by $1 million or 14% sequentially to three fewer days to $8.1 million. Our consolidated (inaudible) $4.9 million, marking a huge improvement from a negative $1.9 million in Q1 (inaudible) order reversed. Now let's look ahead. Q3 is traditionally seasonally a stronger quarter for us, and we have seen that so far through the quarter.

我注意到，儘管電子商務表現疲軟，但我們的實體店特許經營權卻非常強勁，我們能夠將合併調整後的 EBITDA 環比增加 100 萬美元或 14%，在三天內達到 810 萬美元。我們的合併（聽不清楚）為 490 萬美元，與第一季（聽不清楚）訂單逆轉的負 190 萬美元相比有了巨大的改善。現在讓我們展望未來。從傳統季節性角度來看，第三季度對我們來說是一個較為強勁的季度，從本季度到目前為止的情況來看，我們已經看到了這一點。

Our retail machine keeps rolling on. One initiative that is bearing more and more fruit is our White Label, particularly our Queen of Bud brand. You'll recall that on our last quarterly conference call 3 months ago, we had indicated that we had sold over $0.5 million worth of Queen of Bud products to date. And that our largest problem was that sales were going too well, resulting in out of stocks and that we have tripled our orders going forward.

我們的零售機器持續運作。我們的「白標」 (White Label)，特別是「百威皇后」 (Queen of Bud) 品牌，正在取得越來越豐碩的成果。您可能還記得，在三個月前的上一次季度電話會議上，我們曾表示，迄今為止我們已經售出了價值超過 50 萬美元的 Queen of Bud 產品。我們最大的問題是銷售情況太好，導致缺貨，而且我們的訂單量已經增加了兩倍。

I'm pleased to announce that as of today, cumulative cannabis and accessory sales of our Queen of Bud brand have reached $1.4 million, marking a huge jump from where we were three months ago. We've most skews live now 36 in brand -- in our Cabana cannabis (inaudible) higher arrangement currently and in the final stages of due diligence regarding a transaction.

我很高興地宣布，截至今天，我們的 Queen of Bud 品牌的大麻和配件累計銷售額已達到 140 萬美元，與三個月前相比有了巨大的增長。我們目前在 Cabana 大麻（聽不清楚）的品牌中擁有最多偏向的 36 個，目前處於更高的安排中，並且正處於交易盡職調查的最後階段。

While we had wished to be live in the country by now, we've made sure to be extremely thorough regarding our due diligence given the extent to which the market is changing and how transformational such a move would be for us and our shareholders. This period has also been a major confidence booster. Recall that a few months ago, when we discussed our Germany strategy, our plan was to be able to leverage the relationships we've built with licensed producers across Canada and have them export large quantities through our German partner, making us a meaningful player in Germany.

雖然我們希望現在已經在該國開展業務，但考慮到市場變化的程度以及這一舉措對我們和股東的變革性，我們確保對我們的盡職調查進行極其徹底的審查。這段時期也大大增強了信心。回想幾個月前，當我們討論我們的德國策略時，我們的計劃是利用我們與加拿大各地授權生產商建立的關係，並讓他們透過我們的德國合作夥伴出口大量產品，使我們成為德國重要的參與者。

Today, much of the risk in our plan has been significantly diminished. We no longer have to hope that license producers will sell large quantities of cannabis into Europe through us with best-in-class terms. They are already here. Dozens of LPs have expressed their willingness often on an exclusive basis and they're eager to get going. Now that we have identified our preferred partner and transaction terms, it's largely a matter of being a little more patient until everything is finalized and we can get going.

如今，我們計劃中的大部分風險已顯著降低。我們不再需要指望許可生產商透過我們以一流的條件向歐洲銷售大量大麻。他們已經到了。數十家 LP 已表達了合作意願，而且通常都是以獨家形式，他們渴望盡快採取行動。現在我們已經確定了我們的首選合作夥伴和交易條款，接下來主要是需要耐心等待，直到一切最終確定，我們就可以開始行動了。

Meanwhile, our business model has already been devised as supply has been secured, which gives us even more confidence regarding our strategy. We are looking forward to announcing this transaction as soon as we can, and we'll update our shareholders in detail. Simultaneously, we submitted a model project proposal to the German Federal Office for Agriculture & Food in response to a December 2024 ordinant signed by the German Agriculture Minister, related to the study of commercial cannabis that used by adults.

同時，我們的商業模式已經成型，供應也得到了保障，這讓我們對自己的策略更有信心。我們期待盡快宣布此交易，並將向股東通報詳細情況。同時，我們根據德國農業部長於2024年12月簽署的一項法令，向德國聯邦農業和食品局提交了一份示範計畫提案，該法令涉及對成年人使用的商業大麻進行研究。

We will have to see exactly where this program goes with the new government. But in any case, we and a research partner are prepared with our submission already in. As a reminder, we are only interested in federally legal jurisdictions as our shares trade on the NASDAQ. In conclusion, Q2 was another fantastic quarter for High Tide. We posted an acceleration in same-store sales, increased our market share, expanded our base of loyal club members and surpassed the $550 million mark in reported trailing 12-month sales.

我們將拭目以待，看看新政府將如何實施這項計畫。但無論如何，我們和研究夥伴已經準備好要提交了。提醒一下，由於我們的股票在納斯達克交易，我們只對聯邦法律管轄區感興趣。總而言之，第二季度對於 High Tide 來說又是一個精彩的季度。我們的同店銷售額加速成長，市佔率增加，忠實俱樂部會員基礎擴大，過去 12 個月的銷售額突破 5.5 億美元大關。

We continue to cement our leadership in Canadian cannabis retail every day while preparing to establish a beachhead into Europe. I'm so grateful to our talented and hard-working team for getting us here and for where I know they will take us moving forward.

我們每天都在鞏固我們在加拿大大麻零售業的領導地位，同時準備建立進軍歐洲的灘頭堡。我非常感謝我們才華洋溢、勤奮工作的團隊，是他們帶領我們走到了今天，我相信他們還會帶領我們繼續前進。

With that, I'll turn it over to Mayank for his comments and a deeper dive into the numbers.

接下來，我將把問題交給 Mayank，聽取他的評論並深入分析這些數字。

Thank you, Raj, and hello, everyone. Q1 was another great quarter for High Tide, in meeting our objectives and executing on our future growth strategy. Let's take a deeper dive into the numbers. Revenue for Q2 was an all-time high of $137.8 million, up 11% year over year, while it was down 3% sequentially this was entirely due to there being 3% fewer days this quarter. As our average revenue per day was the same as Q1, which is usually seasonally stronger. Our bricks-and-mortar segment led the way, up 16% year over year, driven by our strong same-store sales and the addition of more stores.

謝謝你，Raj，大家好。第一季對於 High Tide 來說又是一個出色的季度，我們實現了目標並執行了未來的成長策略。讓我們更深入地研究一下這些數字。第二季的營收創下 1.378 億美元的歷史新高，年增 11%，而環比下降 3%，這完全是因為本季的天數減少了 3%。由於我們每天的平均收入與第一季相同，而第一季的收入通常隨著季節變化而更高。我們的實體店業務一路領先，年增 16%，這得益於我們強勁的同店銷售額和更多門市的開設。

In addition to merchandise sales, our Cabanalytics platforms continue to set new highs. Cabanalytics Business Data and Insights platform advertising revenue and other revenue, including management fees, interest income and rental income totaled $11.3 million in Q2, up 26% year-over-year and up marginally sequentially. Consolidated gross margins was 26% in Q2 versus 28% in Q2 last year, and 25% sequentially. We were able to post sequential gains in our core bricks-and-mortar segment for the second straight quarter.

除了商品銷售外，我們的 Cabanalytics 平台也持續創下新高。Cabanalytics 商業數據和洞察平台廣告收入和其他收入（包括管理費、利息收入和租金收入）在第二季總計 1,130 萬美元，較去年同期成長 26%，較上季略有成長。第二季綜合毛利率為 26%，去年同期為 28%，上一季為 25%。我們的核心實體業務連續第二季實現連續成長。

As Raj mentioned, we expect to be able to raise margins in this segment once more in Q3. Q2 was also the first full quarter since we launched the Cabana Club loyalty program across all our e-commerce businesses. Our primary feature of this initiative is unbeatable prices. Turning to expenses. Salaries and wages represented 12.7% of revenue in Q2 versus 12.4% a year ago, and 12.3% sequentially as our store count continues to grow. Recall that we have to hire teams four to six weeks before opening for training to ensure Cabana level service on day one.

正如 Raj 所提到的，我們預計第三季該部門的利潤率將再次提高。第二季也是我們在所有電子商務業務中推出 Cabana Club 忠誠度計畫以來的第一個完整季度。我們這項措施的主要特點是無與倫比的價格。談到費用。薪資和薪資佔第二季營收的 12.7%，而去年同期為 12.4%，隨著我們門市數量的不斷增長，薪資和薪資佔第二季營收的 12.3%。回想一下，我們必須在開業前四到六週聘請團隊進行培訓，以確保第一天就能提供 Cabana 等級的服務。

General and administrative expenses represented 4.2% of revenue in Q2. This was an improvement versus 4.5% a year ago and 4.6% sequentially. Adjusted EBITDA was $8.1 million for the quarter. This was down 20% year over year, but up 14% sequentially. Our core brick-and-mortar segment continued to perform exceptionally despite there being fewer days during the quarter. As expected, given our new model our e-commerce businesses posted declines in adjusted EBITDA.

一般及行政開支佔第二季營收的 4.2%。與去年同期的 4.5% 和上一季的 4.6% 相比，這一數字有所提高。本季調整後的 EBITDA 為 810 萬美元。與去年同期相比下降了 20%，但與上一季相比成長了 14%。儘管本季營業天數較少，但我們的核心實體店業務依然表現優異。正如預期的那樣，鑑於我們的新模式，我們的電子商務業務的調整後 EBITDA 出現下降。

As mentioned by Raj, we are closely monitoring this segment. And while we are planning for higher volumes to offset the decline in margins in the coming quarters, we will remain vigilant and flexible to ensure shareholder value is maximized. High Tide generated $4.9 million of free cash flow in Q2. This compared to $9.4 million in Q2 last year, and negative $1.9 million during Q1. We have cautioned that working capital can vary in any given quarter, and that investors need to focus on this metric on a longer period. We continue to make improvements to our balance sheet.

正如 Raj 所提到的，我們正在密切關注這一領域。雖然我們計劃在未來幾季增加銷售量以抵消利潤率的下降，但我們將保持警惕和靈活性，以確保股東價值最大化。High Tide 在第二季產生了 490 萬美元的自由現金流。相較之下，去年第二季的虧損為 940 萬美元，第一季的虧損為 190 萬美元。我們提醒說，營運資本在任何一個季度都會發生變化，投資者需要在較長時期內關注這項指標。我們繼續改善我們的資產負債表。

As of today, our total debt stands at just $25.4 million, which is just 0.8 times our trailing adjusted EBITDA, a level where we believe makes us quite underlevered. We had $34.7 million in cash and cash equivalents at the end of the quarter, and we are well positioned with no upcoming maturities for over two years.

截至今天，我們的總債務僅為 2,540 萬美元，僅為我們過去調整後 EBITDA 的 0.8 倍，我們認為這個水準使我們的槓桿率相當低。截至本季末，我們的現金和現金等價物為 3,470 萬美元，並且我們處於有利地位，兩年多內沒有即將到期的債務。

In closing, Q2 was another great quarter for High Tide. We continue to excel and lead our peers in our core business, as shown by our strong same-store sales and increased market share. We are generating free cash flow, which is fueling the expansion of our store network and should drive record quarters ahead, thanks to our amazing team, without whom none of this would be possible.

總而言之，第二季度對於 High Tide 來說又是一個出色的季度。我們的核心業務繼續表現優異並領先於同行，這體現在我們強勁的同店銷售額和不斷增長的市場份額上。我們正在產生自由現金流，這將推動我們門市網路的擴張，並將推動未來幾季創下紀錄，這要感謝我們出色的團隊，沒有他們，這一切都不可能實現。

With that, I will now turn the call over to the operator to open the line for the question-and-answer session.

現在，我將把電話轉給接線員，開通問答環節。

(Operator Instructions) Bill Kirk, ROTH Capital Partners.

（操作員指示）比爾柯克 (Bill Kirk)，羅仕資本合夥公司 (ROTH Capital Partners)。

Raj, how has the success of your White Label SKUs? How has it impacted the dynamic with the third-party LPs in your stores? Does it give you more negotiating power when dealing with those suppliers? Or does it create any sort of maybe competitive stress in the relationships?

Raj，您的白標 SKU 成功率如何？它對您商店中的第三方 LP 的動態有何影響？在與這些供應商打交道時，它是否會為您帶來更多的談判籌碼？或者它會在人際關係中產生某種競爭壓力？

Bill, thank you for your question. That's a different type of question, but I see where you're coming from. Just to let you know, Bill, our total sales of Queen of Bud amounted to $1.355 million. Out of that, close to $0.5 million of sales were in accessories. And then if you look at Cabana Cannabis Co., all in all, in total, we have about $5.3 million. And if you look at that at an annual level, we're talking about just 1% of our total sales. And pretty much 30%, 40% of that is accessories. So this is -- it's practically peanuts at this point in terms of competing with the producers that we're also buying from.

比爾，謝謝你的提問。這是一個不同類型的問題，但我明白你的意思。比爾，只是想讓你知道，我們的 Queen of Bud 總銷售額達到了 135.5 萬美元。其中，配件銷售額接近 50 萬美元。如果你看看 Cabana Cannabis Co.，總的來說，我們總共有大約 530 萬美元。如果從年度角度來看，這僅占我們總銷售額的 1%。其中大約 30% 到 40% 是配件。因此，就與我們購買產品的生產商的競爭而言，這實際上微不足道。

We're buying their unique brands and products, which makes up 99% of our portfolio. So we're not concerned at this point. We are friendly with the industry. We don't want to compete with our customers as well, and we don't plan to become licensed producers anytime soon. Or that is not on our horizon. And the producers that are backing us up for White Label, they are best-in-class in the country.

我們購買他們獨特的品牌和產品，占我們產品組合的 99%。因此我們現在並不擔心。我們與業界保持友好關係。我們也不想與客戶競爭，也不打算很快成為授權生產商。或者那不在我們的視野之內。而支持我們 White Label 的生產商都是國內一流的。

They're very, very good at their craft, and that is why we are doing business with them. And we have a fantastic relationship with them. And it works for both sides. They can move their biomass and we're able to do some White Label offerings. We were able to bring some White Label offerings to please our customers and get some enhanced margins. But like I said, the business is very, very small to worry about it right now. We can take it to 10% in our store network, and I think that would still be digested very well.

他們非常非常擅長自己的手藝，這就是我們與他們做生意的原因。我們與他們的關係非常好。這對雙方都有利。他們可以運送生物質，我們可以提供一些白標產品。我們能夠推出一些白標產品來取悅我們的客戶並獲得一些更高的利潤。但就像我說的，現在業務量非常小，不必擔心。我們可以在我們的商店網路中將其提高到 10%，我認為這仍然可以被很好地消化。

Okay. And then from a regulatory perspective, the new Prime Minister said there'd be a budget in the fall. What, if any, changes for the cannabis industry could be included? And what would you want included?

好的。然後從監管角度來看，新任總理表示秋季將會公佈預算。如果有的話，大麻產業可以做出哪些改變？您希望包含哪些內容？

So look, we're staying very close with all levels of governments in Canada. So here in Canada, we continue to work closely with regulators and our provincial partners to advocate the changes and to support legal retailers that we very badly need. As you know, there's still an illicit market problem here in Canada. Some of the recent progress I can tell you about that we made is Manitoba's decision to limit cannabis licenses for gas station and convenience stores to smaller communities.

所以，我們與加拿大各級政府保持密切聯繫。因此，在加拿大，我們繼續與監管機構和省級合作夥伴密切合作，倡導變革並支持我們迫切需要的合法零售商。眾所周知，加拿大仍然存在非法市場問題。我可以告訴你們我們最近的一些進展，那就是曼尼托巴省決定將加油站和便利商店的大麻許可證限制在較小的社區。

We were very established in the province of Manitoba. We were there from day one. So we thought it was very unfair for convenience stores and gas stations to be getting licenses, which is now stopped. It also does not protect youth that comes to these stores and shops around with their family. So that is now gone and out of the way.

我們在馬尼托巴省已經非常成熟。我們從第一天起就在那裡。因此，我們認為便利商店和加油站獲得許可證是非常不公平的，現在已經停止了。它也不能保護那些和家人一起來到這些商店購物的年輕人。所以現在這個問題已經不存在了。

Ontario also removed the outdated restrictions on street visibility per stores recently following British Columbia, Manitoba and Alberta. And we are especially engaged, Bill, with Alberta and Ontario, our two largest markets, where both governments are exploring additional changes that could help license retailers compete more effectively with the illicit market.

繼不列顛哥倫比亞省、曼尼托巴省和阿爾伯塔省之後，安大略省最近也取消了每家商店街道可見度的過時限制。比爾，我們特別關注阿爾伯塔省和安大略省這兩個最大的市場，這兩個地方的政府正在探索額外的改革，以幫助持牌零售商更有效地與非法市場競爭。

Frederico Gomes, ATB Capital Markets.

Frederico Gomes，ATB 資本市場。

Congrats on the great quarter. First question, Raj, on the sequential gross margin improvement that you saw in bricks-and-mortar. Could you talk about the drivers behind that? And what's going to be driving the improvement in the next quarter and maybe the following quarters as well?

恭喜本季取得如此出色的成績。第一個問題，Raj，關於實體店的毛利率是否連續增加？您能談談背後的驅動因素嗎？那麼，什麼因素將推動下一季以及接下來幾季的改善呢？

Yes, absolutely. Fred, thank you so much for your question. So this was -- this is not only sequential gross margin improvement. It was two quarters in a row now. So we're up 150 basis points in total in the last two quarters. And we still think there's room. I think you'll see another uptick in Q3 when we report that in September, I believe. So things are going really well on that side. I was -- last quarter, you heard me complaining about the illicit market remaining strong in markets such as Ottawa and Toronto.

是的，絕對是。弗雷德，非常感謝您的提問。所以這不僅僅是連續的毛利率提高。現在已經連續兩個季度了。因此，過去兩個季度我們總共上漲了 150 個基點。我們仍然認為還有空間。我認為，當我們在 9 月報告時，您會看到第三季再次出現上升趨勢。所以那方面的事情進展得非常順利。上個季度，您聽到我抱怨渥太華和多倫多等市場的非法市場仍然強勁。

And that has not changed, but it's also not got worse. But what we are seeing in other pockets of the country where we don't have this elicit market issue or at least elicit market storefronts and delivery issues, we're now seeing competitor store closures happen at a heightened pace. This is something that I talked to you about and other analysts as well. And we had actually talked about exactly this that second half of this year, fiscal 2025, we should be able to raise margins and that is clearly starting to happen.

這種情況並沒有改變，也沒有變得更糟。但我們在該國其他地區看到，這些地區沒有出現這種引發市場問題，或至少沒有引發市場店面和交付問題，我們現在看到競爭對手的商店關閉速度正在加快。這是我與您以及其他分析師討論過的事情。我們實際上已經討論過這個問題，今年下半年，也就是 2025 財年，我們應該能夠提高利潤率，而這顯然已經開始發生了。

So we're right on target with our predictions. To be clear again, it's not happening in Toronto and Ottawa, but it's not getting worse either. So that's a good thing. But in other smaller markets where competitors are quickly closed shops, we're now able to raise our margins. And this is going to continue going forward, I think.

所以我們的預測是正確的。需要再次明確的是，多倫多和渥太華並沒有發生這種情況，但情況也沒有變得更糟。這是一件好事。但在其他較小的市場中，競爭對手很快就關閉了商店，我們現在能夠提高利潤率。我認為這種情況將會持續下去。

Perfect. And then a second question on your e-commerce platform. So a big drag on adjusted EBITDA from e-commerce. So I guess, you mentioned that you're looking at that segment and everything is on the table.

完美的。然後是關於您的電子商務平台的第二個問題。因此，電子商務對調整後的 EBITDA 造成了極大的拖累。所以我想，您提到您正在研究該部分並且所有事情都已擺在桌面上。

So just is there -- what's the point where you think it just might not be worth to pursue the strategy anymore, you don't start seeing results from that discount strategy. What could you ship to here in terms of making that segment profitable or even exiting CBD commercers (inaudible) entirely?

那麼，您認為不再值得繼續推行策略的意義何在，您還沒有看到該折扣策略的成果。為了使該領域盈利，甚至為了使 CBD 貿易商（聽不清楚）完全退出，您可以做些什麼呢？

Yes. So Fred, let me start by saying that e-commerce is a negligible division at this point with only 3% of our consolidated revenue. But we continue to see strategic value in this segment as it helps us to get more customers in the US and Europe for the inevitable legalization. We know eventually, federal legalization will take place, and we're able to onboard customers today with these platforms. So there's a lot of strategic value there.

是的。弗雷德，首先我要說的是，電子商務目前是一個微不足道的部門，僅占我們綜合收入的 3%。但我們仍然看到這一領域的戰略價值，因為它可以幫助我們在美國和歐洲獲得更多客戶，以實現不可避免的合法化。我們知道最終聯邦將實現合法化，並且我們今天就能夠透過這些平台吸引客戶。因此，那裡具有很大的戰略價值。

And we've also aligned it with our global Cabana Club programming. So we continue to push ahead on our unbeatable prices Cabana Club discount strategy, but it has been a challenge for sure. Fortunately, like I said, it's a very small part of our business. We're making sure that people right now we're in the process of still advertising heavily and making sure that people know that it's the best value on the Internet.

我們也將其與我們的全球 Cabana Club 計劃相結合。因此，我們繼續推動我們無與倫比的 Cabana Club 折扣策略，但這無疑是一個挑戰。幸運的是，正如我所說，這只是我們業務中很小的一部分。我們正在向人們保證，我們現在仍在大力宣傳，確保人們知道這是網路上最有價值的東西。

Gross margins should remain around 30% or so as they have been in the past 2 quarters. But look, ultimately, we will be completely flexible to do whatever is required to maximize shareholder value, whether that means getting a more leaner structure in our e-commerce divisions, putting them on hold and raising back pricing to just hold them for (inaudible) legalization or selling them entirely. Everything is on the table.

毛利率應保持在30%左右，與過去兩個季度相同。但最終，我們將完全靈活地採取一切必要措施來最大化股東價值，無論這意味著在我們的電子商務部門中建立更精簡的結構，還是暫停這些部門並提高價格以使其合法化或將其全部出售。一切都擺在桌面上。

We're not married to the e-commerce segment, we know what is our core business. That has never changed. That plan has never changed. You can clearly see our core businesses on fire, bricks-and-mortar grew by 16% year over year, 6.2% was same-store sales growth, 9% was new store growth.

我們並沒有局限於電子商務領域，我們知道我們的核心業務是什麼。這一點從未改變。該計劃從未改變。您可以清楚地看到我們的核心業務蓬勃發展，實體店年增 16%，同店銷售額增長 6.2%，新店增長 9%。

So we've got our secret mantra. And as soon as we turn off e-commerce or if it recovers, which can very well happen as well, you can see a lot more EBITDA will flow back into the business, which will be a bonus from here.

所以我們有了自己的秘密咒語。一旦我們關閉電子商務或它恢復，這很可能也會發生，你會看到更多的 EBITDA 將回流到業務中，這將是一個額外的好處。

Matt Bottomley, Canaccord Genuity.

Canaccord Genuity 的 Matt Bottomley。

Raj, I just wanted to touch briefly on Germany. So I guess, first, just some of your prepared remarks regarding some relationships already with the LPs. Was this an exclusive commentary with respect to them already being involved with this person you're negotiating with? Or whatever color you can provide there?

拉吉，我只是想簡單談談德國。所以我想，首先，您準備好就與 LP 已經建立的一些關係發表一些評論。這是針對他們已經與您正在談判的這個人有關係的獨家評論嗎？或者您可以提供任何顏色？

And then secondly, just going back to some of the concerns around the potential changes in telemedicine subsequent to Germany's election, what's happened since the last time, you guys reported the last time we chatted with respect to whether it's that issue or just the market dynamics overall relative to where they were when you first announced an intent to enter that market.

其次，回到德國大選後人們對遠距醫療可能發生變化的一些擔憂，自上次你們報告我們上次聊天以來發生了什麼，是這個問題還是相對於你們第一次宣布進入該市場的意圖而言的整體市場動態。

Matt, thank you so much for your question. So firstly, we had started doing license producer outreach when we were initially -- when we had initially announced that we were potentially going to do the transaction with Purecan. We had reached out to multiple LPs. And the response that we had received was overwhelming that. We have 40-plus licensed producers that have already confirmed that they would love to do business through us in Europe, so reroute their offerings through us.

馬特，非常感謝您的提問。首先，當我們最初宣布我們可能與 Purecan 進行交易時，我們已經開始進行許可證生產商拓展。我們已經聯繫了多家 LP。我們收到的回饋非常熱烈。我們擁有 40 多家獲得許可的生產商，他們已經確認願意透過我們在歐洲開展業務，因此請透過我們重新安排他們的產品供應。

Many of them actually voluntarily said that they would love to give us exclusivity in Europe for their products because they already do so much business here with us in Canada. And this is not partner-dependent in Germany. I can literally pick any partner that I want to in Germany and nothing changes on the Canadian front.

他們中的許多人實際上主動表示，他們很樂意給予我們其產品在歐洲的獨家經營權，因為他們在加拿大已經與我們做了很多生意。而在德國，這並不依賴合作夥伴。我實際上可以在德國選擇任何我想要的合作夥伴，而在加拿大方面則沒有任何變化。

Our relationships in Canada are tied to High Tide's march ahead here in Canada and how much procurement we do in this country and the relationships we built in the long term, it's got nothing to do with a particular German partner that we pick. Although we are going to pick an exciting German partner, which we will disclose in due course, since that is not announced yet.

我們在加拿大的關係與 High Tide 在加拿大的發展以及我們在這個國家的採購量和我們長期建立的關係息息相關，與我們選擇的特定德國合作夥伴無關。儘管我們將選擇一個令人興奮的德國合作夥伴，但我們將在適當的時候披露，因為目前尚未宣布。

On your other question about German political update, there's a lot to talk about there. So I can give you a little bit of color there. So Germany also recently sworn a new coalition government led by the Christian Democrats as you know, and supported by the social Democrats. Now the two parties don't currently see eye to eye on cannabis. So the Christian Democrats campaigned on rolling back some of the previous government's reforms. While the Social Democrats have pushed back against those efforts.

關於您提到的另一個問題，即德國政治動態，有很多內容可以討論。所以我可以提供你一點顏色。如你所知，德國最近也宣誓成立了由基督教民主黨領導、社會民主黨支持的新聯合政府。目前，兩黨在大麻議題上意見並不一致。因此，基督教民主黨發起了推翻前政府部分改革的競選活動。然而，社會民主黨卻抵制了這些努力。

So I think as a compromise, what we are hearing is that they've agreed to a joint review of the adult use cannabis law in Germany with initial findings expected this fall and then a full report will come out next spring. At least that is what we are hearing. And the newly appointed Health Minister also from the Christian Democrats has signaled interest in tightening rules around e-prescribing, especially from doctors outside of Germany offering prescriptions via online questionnaire, which we think is very fair and should happen.

因此，我認為作為一種妥協，我們聽到的是，他們已同意對德國的成人使用大麻法進行聯合審查，預計將於今年秋季公佈初步結果，然後在明年春季公佈完整的報告。至少我們聽到的是這樣的。新任命的衛生部長也來自基督教民主黨，他表示有意加強電子處方監管，特別是針對德國以外的醫生透過線上問卷提供處方，我們認為這是非常公平的，應該這樣做。

So that is going to get tightened. But that said, the industry view is that it remains very unlikely that the government will reclassify cannabis as a narcotics.

所以這項規定將會變得更加嚴格。但話雖如此，業內人士認為，政府將大麻重新歸類為麻醉藥品的可能性仍然很小。

Perfect. Appreciate that. And then just one more for me. Just going back to one of the first questions on the Q&A here. with respect to your own in-house brands. So I think you had mentioned at the end of your remarks that a 10% allocation ultimately probably wouldn't ruffle any further.

完美的。非常感謝。然後我再說一次。回到這裡問答環節中的第一個問題，關於您自己的自有品牌。所以我認為您在發言結束時提到，10% 的分配最終可能不會造成進一步的擾亂。

So I'm just curious, is that something we should anticipate a decent ramp over the near-ish to medium term, just because I would assume that would be margin accretive. So if 10% might be the number. Just wondering what would be the roadblocks to getting there, whether they're your own decisions or just market dynamics?

所以我很好奇，我們是否應該預期在中短期內會出現一個相當大的成長，因為我認為這會增加利潤率。所以 10% 可能是這個數字。只是想知道實現這一目標的障礙是什麼，是您自己的決定還是市場動態？

Look, Matt, I was asked the question a lot. So I put 10% out there, but I can tell you that if I was 20% of our total offerings with the volumes that we have and the plans that we have to go to 300 stores, and beyond, I don't think any one of our partners or licensed producers are sweating on what we are talking about. I think they're totally cool with that. Like I said, I don't compete with my customers. I'm not a grower myself.

聽著，馬特，我常被問到這個問題。所以我把 10% 放在那裡，但我可以告訴你，如果我的產品占我們總供應量的 20%，考慮到我們現有的數量以及我們必須進入 300 家商店甚至更多的計劃，我認為我們的任何一位合作夥伴或授權生產商都不會為我們談論的事情而煩惱。我認為他們對此完全沒意見。正如我所說的，我不會與我的客戶競爭。我自己並不是一個種植者。

We don't intend to be that. And we intend to give that business back to the growers here in Canada. So there's absolutely no issue on that end, and we might actually go to 20%, 25% in the long term. But I was just saying, even if we quickly got to 10%, you're not going to hear any volumes from any other LPs saying that you're now stepping on our toes. I think that absolutely not the case. We've also been very crafty and very careful in terms of what we bring to the market, Matt.

我們並不打算這樣。我們打算將這項業務歸還給加拿大的種植者。所以這方面絕對沒有問題，長遠來看我們實際上可能會達到 20%、25%。但我只是說，即使我們很快就達到 10%，你也不會聽到任何其他 LP 說你現在踩到了我們的腳趾。我認為絕對不是這樣。馬特，我們在向市場推出產品方面也非常精明和謹慎。

So if you carefully look at or you carefully examine the Queen of Bud SKUs, we've got some very creative SKUs like rose petal blunts and (inaudible) blunts and things that are not existing in the Canadian market today. Queen of Bud is an extremely unique brand, and we're able to get upwards of 6% additional margin up to 8% additional margin. on some of the Queen of Bud SKUs.

因此，如果您仔細查看或仔細檢查 Queen of Bud SKU，您會發現一些非常有創意的 SKU，例如玫瑰花瓣雪茄和（聽不清楚）雪茄以及當今加拿大市場上不存在的東西。Queen of Bud 是一個非常獨特的品牌，對於某些 Queen of Bud SKU，我們能夠獲得 6% 以上的額外利潤，最高可達 8% 的額外利潤。

So we're very, very excited to launch more. In fact, more is already in the works. By the end of this summer, we're going to have a lot more SKUs in the market, and it's going to continue rolling out from that point.

因此，我們非常非常高興能夠推出更多產品。事實上，更多的工作已經在籌備中。到今年夏末，我們將在市場上推出更多 SKU，並且從那時起我們將繼續推出這些產品。

Andrew Semple, Ventum Financial.

Ventum Financial 的 Andrew Semple。

Congrats on the solid Q2 results and also on reaching the 200 store milestone. I'm just going to pick up with something you just mentioned, Raj, potentially exceeding 300 retail stores in Canada. I saw that the company tweaked its outlook in the press release previously. High Tide was aiming to reach 300 stores. I guess that seems to show that you're increasingly confident in getting to the 300-store mark.

恭喜您第二季取得的穩健業績以及達到 200 家門市的里程碑。拉吉，我只是想談談你剛才提到的一點，加拿大的零售店可能會超過 300 家。我看到該公司之前在新聞稿中調整了其前景。High Tide 的目標是開設 300 家門市。我想這似乎表明您對達到 300 家店的目標越來越有信心。

What are you seeing, I guess, more recently that's supporting that increased confidence? And I also want to check whether there's been any change in expectation whether the majority of stores would be organically developed versus acquired as you're looking to potentially exceed the 300-store milestone?

我想，您最近看到了什麼來支持這種信心的增強？我還想檢查一下，由於您希望突破 300 家門市的里程碑，那麼對於大多數門市是自然發展還是收購而來的預期是否有任何變化？

Perfect. Andrew, and thank you so much. As you know, we have been -- we've disclosed the 300-store goal quite a long time ago to the market. As I get closer and closer to that goal, I mean, we're still at 200, but we have big dreams. We put the 300 number out there. I think we will breach the 300 number, but I like to get to goals before we raise those targets, but that's how much opportunity I'm seeing in Canada right now.

完美的。安德魯，非常感謝你。如您所知，我們很久以前就向市場透露了 300 家門市的目標。當我越來越接近這個目標時，我的意思是，我們仍然有 200 個，但我們有一個遠大的夢想。我們把 300 這個數字放在那裡。我認為我們將突破 300 這個數字，但我希望在提高目標之前先實現目標，但這就是我現在在加拿大看到的機會。

As I've been talking to you and Fred and Matt and everybody else that we're going to see High Tide competitor store closures. That is starting to happen, Andrew. Very suddenly, we see our store sales are picking up very rapidly. That has not happened in the last few years, and that's also giving us a tremendous opportunity to raise gross margins in many pockets of the country now. So we think this will continue.

正如我和你、弗雷德、馬特以及其他所有人談論的那樣，我們將看到 High Tide 競爭對手的商店關閉。這已經開始發生了，安德魯。突然間，我們發現商店的銷售額正在迅速成長。這在過去幾年中從未發生過，這也為我們提供了一個巨大的機會，可以在全國許多地區提高毛利率。因此我們認為這種情況將會持續下去。

I've always maintained five years leases -- leasing point is a major point for the industry where operators have to decide that they want to continue bearing the pain or they want to hang up the boots and move on to something else. And that is starting to happen now. On top of that, we've established ourselves as the premier, the largest cannabis retail brand in the country, and we are getting red carpet treatment from some of the largest landlords in the country where we get locations ahead of anybody else.

我一直堅持五年租約——租賃點是該行業的一個主要節點，運營商必須決定他們是想繼續承受痛苦，還是想放棄並轉向其他業務。而現在這種情況已經開始發生了。除此之外，我們已經成為國內首屈一指、最大的大麻零售品牌，並且受到國內一些最大地主的隆重接待，我們比其他任何人都更早獲得店鋪。

And we don't even see anyone competing with us on the table some time because those locations come to us first. So because we're able to get such high-quality Tier 1 locations all the time, I already have another dozen or so under construction. The 9 that we built this year, YTD, year-to-date were all organic. The 12 that we're building right now are fantastic Tier 1 locations, all organic.

有時我們甚至看不到有人與我們競爭，因為這些地點是先找到我們的。因此，由於我們始終能夠獲得如此高品質的一級地點，我已經有十幾個地點正在建設中。我們今年迄今建造的 9 個都是有機的。我們目前正在建造的 12 個地點都是非常棒的一級地點，而且全部都是有機的。

And then I have no shortage of more Tier 1 leases coming through. So we're very, very confident with the target that we still have remaining in Ontario alone. You can see that we are only at 82 stores in Ontario, and 150 is allowed. So we're going to go to another 70 stores or so in Ontario alone. And then Alberta, which has been a very mature market for us over the last 6 or so years, we still think that Alberta can have another 30 to 40 Canna Cabanas here. So tons and tons of opportunity there.

然後我就不再缺少更多的一級租約了。因此，我們對於僅在安大略省就能實現的目標非常有信心。您可以看到我們在安大略省只有 82 家商店，而允許的數量為 150 家。因此，僅在安大略省，我們就會去另外 70 家左右的商店。然後是阿爾伯塔省，在過去 6 年左右的時間裡，這裡對我們來說是一個非常成熟的市場，我們仍然認為阿爾伯塔省可以再建 30 到 40 個 Canna Cabanas。所以那裡有無數的機會。

And then on your question of why are we so confident that I just answered on your question of organic versus -- I think you asked me organic versus M&A. M&A is difficult for a player our size that is very, very disciplined in the type of multiples that we are willing to pay, and also be able to pinpoint in micro markets or pinpoint targeted locations where we need to be. Usually, our competitors are far, far behind from us.

然後關於你問的為什麼我們如此有信心，我剛才回答了你關於有機與有機結合的問題——我想你問的是有機與併購。對於我們這樣規模的企業來說，併購是困難的，因為我們對於願意支付的倍數類型非常嚴格，並且能夠精準定位微型市場或精準定位我們需要進入的目標位置。通常，我們的競爭對手都遠遠落後於我們。

So if we acquire those stores, we must still double to triple those revenues which is not easy to do if the location is not absolutely amazing. When I can get absolutely amazing locations for $260,000 in hard CapEx that I have to spend and another $140,000 -- $100,000 in inventory and working capital investments we can do this day and day night, day in, day out, and we're going to continue doing this.

因此，如果我們收購這些商店，我們仍然必須將這些收入增加一倍到三倍，如果地理位置不是絕對優越，這並不容易做到。當我能以 260,000 美元的硬性資本支出和另外 140,000 至 100,000 美元的庫存和營運資本投資獲得絕對令人驚嘆的地點時，我們可以日復一日、夜復一夜地做這件事，而且我們將繼續這樣做。

So I think we'll be growing a lot more organically than through M&A, but any M&A will be supplemental to the numbers that we are presenting on an annual basis.

因此，我認為我們的成長將比透過併購更加有機，但任何併購都將對我們每年呈現的數字進行補充。

Great. I appreciate that additional color, that was very helpful. And then just my follow-up here would be on maybe some of the market dynamics. We've been hearing from a number of the Canadian LPs that domestic cannabis prices have begun to stabilize or even increase for the first time in years at the wholesale level.

偉大的。我很欣賞這種額外的顏色，它非常有幫助。然後，我接下來想討論的是一些市場動態。我們從一些加拿大 LP 那裡聽說，國內大麻批發價格多年來首次開始穩定甚至上漲。

Are you seeing any higher prices for branded cannabis SKUs at retail yet? Or is that not materialized on store shelves quite yet? And then what would the impact be to your business if we were to see a substantial increase in cannabis prices across the country, not not that we're -- not that I'm necessarily expecting that, but just want to hear your thoughts on whether that's positive, negative or agnostic for your business.

您是否發現零售品牌大麻 SKU 的價格有所上漲？或者這還沒有在商店貨架上實現？那麼，如果我們看到全國的大麻價格大幅上漲，這會對您的業務產生什麼影響，並不是說我們 - 我不一定期望這一點，而只是想听聽您的看法，這對您的業務來說是積極的、消極的還是不可知的。

Yes, absolutely, Andrew. So look, the situation has improved considerably from a year ago. It took us six years to get to this point, and I've been talking about White Label to you and others that it's been so difficult. By the time we order by the time the product lands were already on the back foot because the original SKU has declined in pricing.

是的，當然，安德魯。所以看起來，情況比一年前有了很大的改善。我們花了六年的時間才達到這一點，我一直在向你和其他人談論 White Label，這非常困難。當我們下訂單時，產品到達時，我們已經處於劣勢，因為原始 SKU 的價格已經下降了。

But it's definitely been improving considerably at least from a year or two ago. It's a lot more balanced and export has helped. A lot of Canadian LPs are exporting to Europe and elsewhere around the world, Canada remains the largest exporter of cannabis to the world. This is why we are so excited to get into Germany. We have purchasing power here. We have procurement expertise here and prices are now stable, which is very, very good for our licensed producer friends as well.

但至少與一兩年前相比，情況確實有了顯著改善。現在情況更加平衡，而且出口也起了作用。許多加拿大 LP 出口到歐洲和世界其他地區，加拿大仍然是世界上最大的大麻出口國。這就是我們如此興奮進入德國的原因。我們在這裡有購買力。我們在這裡擁有採購專業知識，而且價格現在穩定，這對我們的持牌生產商朋友來說也非常非常好。

And then we are likely to see a slightly higher move going forward because Canada is now starting to run out of inventory and very balanced inventories currently, which wasn't the case for the last 6 years. So this is a great setup for ramping up our white label offerings as well. It was a huge pain point for me, Andrew, where we would order under Cabana Cannabis Co. We knew we were ordering the best products only because we have all the data in the world.

然後我們可能會看到未來價格略有上漲，因為加拿大現在開始庫存不足，而且庫存目前非常平衡，而過去 6 年並非如此。因此，這對於擴大我們的白標產品也是一個很好的設定。對我和安德魯來說，這是一個巨大的痛點，因為我們會在 Cabana Cannabis Co. 下訂購。我們知道我們訂購的是最好的產品，因為我們擁有世界上所有的數據。

But guess what, by the time the product lens, there's a lot that goes into a product calls that you've got to register with the provinces, the packaging that goes into it. the time line for raw materials that need to be secured, all of that stuff and minimum case quantities that need to be ordered. And then by the time the product lands, the original SKU declines in prices. That is not happening.

但是，您猜怎麼著，到了產品鏡頭前，產品中涉及很多內容，您必須向各省註冊，產品包裝也需要進行。需要確保原材料的時間表，所有這些東西以及需要訂購的最低數量。然後，當產品到達時，原始 SKU 的價格就會下降。但那並沒有發生。

Queen of Bud is exploding, so as Cabana Cannabis Co., and we are going to introduce a lot more white label products because we are confident that going forward, Canada is going to have a lot more balanced equation on the supply-demand dynamics, which should really help with price increases going forward and which should really help extracting some margins from our White Label product portfolio.

Queen of Bud 的銷量正在爆炸式增長，Cabana Cannabis Co. 也計劃推出更多白標產品，因為我們相信，加拿大未來的供需動態將更加平衡，這應該有助於未來的價格上漲，也應該有助於從我們的白標產品組合中提取一些利潤。

There are no further questions at this time. Let me turn the call over to Mr. Raj Gruber, Founder and Chief Executive Officer, for closing remarks. Please go ahead, sir.

目前沒有其他問題。請容許我將發言權轉給創辦人兼執行長 Raj Gruber 先生，請他致最後發言。先生，請繼續。

Thank you, Angela, and thank you to everyone for your interest and continued support for Haiti. We're very proud of what we achieved this quarter and remain excited about the road ahead. With that, I'll ask the operator to close the line. Have a great day, everyone.

謝謝你，安吉拉，也謝謝大家對海地的關心和持續支持。我們對本季所取得的成就感到非常自豪，並對未來的道路充滿期待。這樣，我就要求接線員關閉線路。祝大家有個愉快的一天。

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。