Delta 9 Cannabis Inc. (TSX:DN) has reported its second-quarter financial results, revealing both sequential and year-over-year net revenue growth, and also announced the acquisition of three retail cannabis stores in Manitoba.
In the three months ended June 30, the company reported net revenue of $17.5 million, 4% higher than $16.75 million in the same period a year earlier and 40% higher than $12.5 million in the first quarter of 2022.
Gross profit was $4.6 million for the quarter, a decrease of 6% from $4.9 million a year ago. The company posted an adjusted EBITDA loss of $400,000, compared with a $1.2 million profit in the second quarter last year.
READ: Delta 9 Cannabis says it expects solid revenue growth for the three-month and six-month period ending June 30
"Our team delivered strong second-quarter results with sequential and year-over-year topline growth and improved margins driven by a focus on our strategic growth plan,” Delta 9 CEO John Arbuthnot said in a statement.
"During our recent strategic planning review with the board of directors, we have identified several proactive growth opportunities to maneuver the current economic conditions by continuing to expand our retail cannabis store network across Canada and expand certain aspects of our business into new markets,” he added.
Speaking of expansion, Delta 9 also announced on Monday the acquisition of three retail cannabis stores in Manitoba. The roughly all-stock $3.2 million deal, made with 10552763 Canada Corp, will have Delta 9 acquire three Garden Variety branded stores in the province, two in Winnipeg and one in Brandon
“We are pleased to announce another strategic retail acquisition to grow our market share across the Canadian prairies,” said Arbuthnot. “On closing of this transaction, Delta 9 will operate 38 stores, positioning us as one of Canada’s largest vertically integrated cannabis retailers.”
The transaction is expected to close on or around August 29, the company said.
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