Is Delta 9 Cannabis Inc.'s Q2 2023 Revenue Surge Enough To Offset Net Losses?

Author: Nicolás Jose Rodriguez | August 14, 2023 07:16pm

Delta 9 Cannabis Inc. (OTC:DLTNF) released its financial results Monday for the three-month period ending June 30, 2022.

During the second quarter of 2022, Delta 9 reported a net loss of $(3.4) million from operations, a notable contrast to the $(0.8) million loss incurred in the same quarter last year.

Despite this, the company's net revenue showcased growth, reaching CAD $17.5 million for the quarter, up by 4% from the previous year's CAD 16.75 million.

Sequentially, Delta's net revenue surged by 40% from CAD 12.5 million in the preceding quarter, ending March 31, 2022.

"Our Q2 results show robust growth with improved margins, driven by our strategic plan," stated John Arbuthnot, CEO of Delta 9. "We're capitalizing on growth opportunities, expanding retail stores nationwide, and entering new markets. Our solid balance sheet allowed a $11.8 million convertible debt repurchase in July. This supports organic growth and strategic M&A pursuits."

Profit Margin And EBITDA Performance

• Gross profits for the second quarter of 2022 amounted to CAD 4.6 million, reflecting a 6% decrease compared to the same period in the prior year when it stood at CAD 4.9 million. Consequently, the gross margin experienced a marginal decline.
• Delta 9's adjusted EBITDA for the second quarter of 2022 indicated a loss of $(0.4) million, diverging from the positive adjusted EBITDA of CAD 1.2 million reported in the same quarter last year.

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Photo: wal_172619 via Pixabay. 

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