Delta 9 Cannabis Inc (TSX:DN) has reported record revenue in financial and operating results for the three-month and full year ending December 31, 2022.
“We are pleased to report record fourth-quarter and year-end revenues for 2022 demonstrating the versatility of our business model with measurable improvements versus the third quarter of 2022,” said John Arbuthnot, CEO of Delta 9 Cannabis in the results statement.
“Challenges persist in the Canadian cannabis industry, which continues to struggle with intense competition resulting in margin compression and affecting overall growth. We remain confident that Delta 9 will be able to navigate the industry challenges and return the company to growth and profitability in the coming quarters,” he added.
READ: Delta 9 Cannabis significantly increases its capacity to manufacture prerolled cannabis products
Financial Highlights for the Year Ending December 31, 2022:
- Net revenues of $63.2 million in 2022, an increase of 2% compared to $62.3 million in 2021, including the following revenue segmentation highlights: Retail revenues increased 26% to $52.2 million in 2022; Wholesale revenues decreased 35% to $12.1 million in 2022; Business-to-business revenues decreased 65% to $1.7 million in 2022
- Gross profit of $12.9 million in 2022 compared to $18.3 million last year.
- Adjusted EBITDA (loss) of $(5.2) million in 2022 compared to an adjusted EBITDA of $2.0 million last year.
- Loss from operations of $(20.3) million in 2022 compared to loss from operations of $(7.6) million last year.
Financial Highlights for the Three-Month Period Ending December 31, 2022:
- Quarterly net revenues of $17.6 million for the fourth quarter of 2022, an increase of 3% compared to $17.1 million for the same quarter last year.
- Sequentially net revenues increased 12% for the fourth quarter of 2022 compared to $15.7 million in the third quarter of 2022.
- Gross profit of $3.4 million for the fourth quarter of 2022 compared to $4.9 million for the same quarter last year.
- Sequentially gross profit increased 76% in the fourth quarter of 2022 compared to $1.9 million in the third quarter of 2022.
- Sequentially adjusted EBITDA (loss) improved to $(1.5) million in the fourth quarter of 2022 compared to an adjusted EBITDA (loss) of $(1.7) million in the third quarter of 2022.
A comprehensive discussion of Delta 9’s financial position and results of operations is provided in the company’s Management Discussion & Analysis for the three-month and year-ending period ending December 31, 2022, can be found at www.sedar.com.
2022 Fourth Quarter Results Conference Call
A conference call to discuss the results is scheduled for April 3, 2023, at 10.00am Eastern Time and will be hosted by Arbuthnot and Jim Lawson, the company’s chief financial officer, followed by a question-and-answer period. Dial-in details: Eastern Time #1-888-886-7786; Replay 1-877-674-6060 available until 12.00 midnight Eastern Time, December 15, 2023; Replay passcode:107180 #
Delta 9 Cannabis is a vertically integrated cannabis company focused on bringing the highest quality cannabis products to market. The company sells cannabis products through its wholesale and retail sales channels and sells its cannabis grow pods to other businesses.
Delta 9's wholly-owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical and recreational cannabis and operates an 80,000-square-foot production facility in Winnipeg, Manitoba, Canada. Delta 9 owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand.
Contact the author at jon.hopkins@proactiveinvestors.com