Delta 9 Reports Financials for Q2 2023
WINNIPEG, Manitoba, Aug. 14, 2023 (GLOBE NEWSWIRE) -- DELTA 9 CANNABIS INC. (TSX: DN) (OTC: DLTNF) (“Delta 9” or the “Company”), is pleased to announce financial and operating results for the three-month and six-month period ending June 30, 2023.
Financial Highlights for the three-month period ending June 30, 2023
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Net revenue of $18.3 million for the second quarter of 2023, an increase of 4%, from $17.5 million for the same quarter last year.
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Sequential net revenue increased 8% versus $16.9 million for the three-month period ending March 31, 2023.
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Gross profit of $5.2 million for the second quarter of 2023, an increase of 12%, from $4.6 million for the same quarter last year.
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Loss from operations of $(3.5) million for the second quarter of 2023 versus a loss from operations of $(3.4) million for the same quarter last year.
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Adjusted EBITDA of $1.4 million for the second quarter of 2023 versus an adjusted EBITDA (loss) of $(0.4) million for the same quarter last year.
Financial Highlights for the six-month period ending June 30, 2023
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Net revenue of $35.2 million for the first six months of 2023, compared to $30 million for the same period last year.
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Gross profit of $9.4 million for the first six months of 2023, versus $7.6 million for the same period last year.
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Loss from operations of $(4.7) million for the first six months of 2023 versus a loss from operations of $(6.4) million for the same period last year.
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Adjusted EBITDA of $0.8 million for the first six months of 2023 versus an adjusted EBITDA (loss) of $(2.1) million for the same period last year.
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Cash flows from operations of $2.0 million for the first six months of 2023.
| Consolidated Statement of Net Income (Loss) | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 |
| Revenue | $15,693,969 | $17,559,647 | $16,902,378 | $18,252,096 |
| Cost of Sales | 13,772,202 | 14,173,693 | 12,689,181 | 13,039,705 |
| Gross Profit Before Unrealized Gain From Changes In Biological Assets | 1,921,767 | 3,385,954 | 4,213,197 | 5,212,391 |
| Unrealized gain from changes in fair value of biological assets (Net) | 340,602 | (2,710,521) | 2,135,184 | (1,581,124) |
| Gross Profit | $2,262,369 | $675,433 | $6,348,381 | $3,631,267 |
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| Expenses |
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| General and Administrative | 3,668,708 | 3,551,472 | 3,390,234 | 3,087,652 |
| Sales and Marketing | 3,710,471 | 4,647,409 | 4,003,020 | 4,043,689 |
| Share Based Compensation | 1,086,858 | 169,540 | 167,603 | - |
| Total Operating Expenses | $8,466,037 | $8,368,421 | $7,560,857 | $7,131,341 |
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| Adjusted EBITDA (Loss) 1 | (1,683,018) | (1,479,845) | (475,595) | 1,361,821 |
| Income (Loss) from Operations | $(6,203,668) | $(7,692,988) | $(1,212,476) | $(3,500,074) |
| Other Income/ Expenses | (1,470,942) | (3,515,430) | (1,930,496) | 1,460,388 |
| Net Income (Loss) | $(7,674,610) | $(11,208,418) | $(3,142,972) | $(2,039,686) |
| Basic and Diluted Earnings (Loss) Per Share | $(0.06) | $(0.09) | $(0.02) | $(0.02) |
John Arbuthnot, CEO of Delta 9, stated, “Our employees delivered a record second quarter with higher revenues sequentially, and year over year, and with better margins driven by the execution of our strategic plan. We are enjoying the gains from our retail expansion announced last year and from our cost saving initiatives announced in early January 2023. We are delivering on our commitment to grow revenue, drive operating efficiencies, and improve margins and profitability, all while investing in our industry-leading retail brands.”