Net revenue

Delta 9 Cannabis Inc. Reports Third Quarter Net Sales of $15.2 Million on Strong Cannabis Product Sales Through Its Wholesale and Retail Channels

The company 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.

Delta 9 Cannabis Inc. (TSX:DN) reported third quarter results that saw net revenue jump 16% year-over-year driven by sales of cannabis products through its channels wholesale and retail.

For the period ended September 30, 2021, the Winnipeg, Manitoba-based vertically integrated cannabis company reported net revenue of $15.2 million, compared to $13.1 million for the same quarter last year. .

The company said its gross profit for Q3 2021 rose 55% to $4.8 million from $3.1 million in Q3 2020.

READ: Delta 9 Cannabis Announces Strong 3Q Earnings Guidance and November 15 Earnings Call

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, tax, 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 reported net revenue of $45.2 million, up 19% from $37.9 million in the corresponding period of the year. ‘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 of $1.4 million for the first nine months of 2021, which was the same as 2020.

“We are delighted to have been 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 revenue has 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 Delta 9 Cannabis CEO, John Arbuthnot, in a statement.

“In Q3 2021, we saw a degree of seasonality and timing issues related to provincial government purchasing patterns affecting our wholesale business and impacting sequential revenue growth. We remain optimistic that the remainder of 2021 should outperform last year’s results,” he added.

Delta 9 said it opened four cannabis retail stores during the quarter, including two in Edmonton, Alberta, and two in Manitoba, Winnipeg and Selkirk.

The company now has 16 cannabis retail stores in operation, including 11 in Manitoba, four in Alberta and one in Saskatchewan. Delta 9 said it continues to “make progress toward 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 shopping 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 host a conference call Nov. 15 at 9:00 a.m. ET with CEO John Arbuthnot and Chief Financial Officer Jim Lawson.

Contact author Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive