Delta 9 Reports Financials for Q2 2023

Delta 9 Cannabis
Delta 9 Cannabis

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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

  • 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.

    • Sequential net revenue increased 8% versus $16.9 million for the three-month period ending March 31, 2023.

  • 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.

  • 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.

  • 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

  • Net revenue of $35.2 million for the first six months of 2023, compared to $30 million for the same period last year.

  • Gross profit of $9.4 million for the first six months of 2023, versus $7.6 million for the same period last year.

  • 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.

  • 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.

  • 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

 

 

 

 

 

Expenses

 

 

 

 

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

 

 

 

 

 

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.”