Delta 9 Cannabis Inc. (TSX:DN) has posted third-quarter results that saw its net revenue jump by 16% year-over-year on the back of sales of cannabis products through its wholesale and retail sales channels.
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 the 3Q of 2021 increased by 55% to $4.8 million, compared to $3.1 million in the 3Q of 2020.
READ: Delta 9 Cannabis announces strong 3Q revenue forecast and earnings call on November 15
Delta 9 significantly narrowed its net loss from operations to $55,031 for the quarter, compared to a loss of $4,578,729 for the same quarter a year earlier.
The company reported an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $191,056 for the quarter, compared to an adjusted EBITDA of $210,756 million for the corresponding period in 2020.
Meanwhile, for the first nine months of 2021, the company saw net revenue of $45.2 million, up 19% from $37.9 million in the corresponding period a year earlier.
The company logged a 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 were pleased 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 growth trending in 2021,” Delta 9 Cannabis CEO John Arbuthnot said in a statement.
“In the 3Q of 2021 we have seen a degree of seasonality and timing issues relating to provincial government’s purchasing patterns affecting our wholesale business and impacting sequential revenue growth. We remain bullish that the remainder of 2021 looks to outperform last year’s results,” he added.
Delta 9 noted that it opened four cannabis retail stores during the quarter with two in Edmonton, Alberta, and two in Manitoba in Winnipeg and Selkirk.
The company now has 16 operating cannabis retail stores with 11 in Manitoba, four in Alberta and one in Saskatchewan. Delta 9 said it continues to “make progress on its goal of having 20 stores open in the near term.”
“Delta 9 will accomplish this through select strategic acquisition targets and a focus on retail store build-outs at convenient and high traffic shopping locations,” said the company. This growth strategy has been a successful part of the company’s overall vertical integration strategy, it added.
The company will hold a conference call on November 15 at 9:00 am ET with CEO John Arbuthnot, and CFO Jim Lawson.
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