The company significantly reduced its net operating loss to $ 55,031 for the quarter, compared to a loss of $ 4,578,729 for the same quarter a year earlier.
Delta 9 Cannabis Inc. (TSX: DN) released third quarter results that saw net sales jump 16% year-over-year on sales of cannabis products through its sales channels wholesale and retail.
For the period ended September 30, 2021, the vertically integrated cannabis company of Winnipeg, Manitoba reported net sales of $ 15.2 million, compared to $ 13.1 million for the same quarter l last year.
The company said its gross margin for Q3 2021 increased 55% to $ 4.8 million, from $ 3.1 million in Q3 2020.
READ: Delta 9 Cannabis Announces Strong Third Quarter Revenue Forecast and Earnings Call on November 15
Delta 9 significantly reduced its net operating loss to $ 55,031 for the quarter, from a loss of $ 4,578,729 for the same quarter a year earlier.
The company reported Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $ 191,056 for the quarter, compared to Adjusted EBITDA of $ 210,756 million for the corresponding period in 2020.
Meanwhile, for the first nine months of 2021, the company achieved net sales of $ 45.2 million, up 19% from $ 37.9 million in the corresponding period of l ‘last year.
The company reported gross profit of $ 13.4 million for the first nine months of 2021, an increase of 16% from $ 11.6 million for the first nine months of 2020. Adjusted EBITDA was $ 1.4 million for the first nine months of 2021, which was the same as 2020.
“We are delighted to be recognized by the Globe and Mail’s annual survey as the 7th fastest growing company in Canada with a three-year revenue growth rate of 5,413%. Delta 9’s annual revenues have grown from less than $ 1 million in 2017 to over $ 52 million in 2020, and we continue to see a growth trend in 2021, ”said CEO of Delta 9 Cannabis , John Arbuthnot, in a press release.
“In the third quarter of 2021, we saw a number of seasonality and timing issues related to provincial government purchasing habits affecting our wholesale business and impacting sequential revenue growth. We remain optimistic that the rest of 2021 appears to outperform last year’s results, ”he added.
Delta 9 said it opened four retail cannabis stores during the quarter, including two in Edmonton, Alta., And two in Manitoba in Winnipeg and Selkirk.
The company now has 16 cannabis retail stores, including 11 in Manitoba, four in Alberta and one in Saskatchewan. Delta 9 said it continues to “make progress towards its goal of opening 20 stores in the near term.”
“Delta 9 will achieve this through selected strategic acquisition targets and a focus on building retail stores in convenient, high traffic commercial locations,” the company said. This growth strategy has been a successful part of the company’s overall vertical integration strategy, he added.
The company will hold a conference call Nov. 15 at 9 a.m. ET with CEO John Arbuthnot and CFO Jim Lawson.
Contact author Uttara Choudhury at [email protected]
Follow her on Twitter: @UttaraProactive