DN:CC - Delta 9 Reports Financials for Q1 2024
(TheNewswire)
WINNIPEG, MB – TheNewswire - May 15, 2024 – DELTA 9 CANNABIS INC. (TSX: DN)(OTC: DLTNF) (“Delta 9” or the “Company”), is pleased toannounce financial and operating results for the three-month periodending March 31, 2024.
Financial Highlights for thethree-month period ending March 31, 2024
-
Net revenue of $16.5million for the first quarter of 2024, a decrease of 2%, from $16.9million for the same quarter last year.
-
Gross profit, before changes in the fair value ofbiological assets, of $4.7 million for the first quarter of 2024, anincrease 10%, from $4.2 million for the same quarter lastyear.
-
Gross profit margin, before changes in the fair valueof biological assets, of 28% for the first quarter of 2024, versus 25%for the same quarter last year.
-
Loss from operations of $(3.0) million for the firstquarter of 2024 versus a loss from operations of $(1.2) million forthe same quarter last year.
-
Adjusted EBITDA of $5,270 for the first quarter of 2024versus an adjusted EBITDA (loss) of $(475,595) for the same quarterlast year.
" During the first quarter,we continued to focus on sustaining revenues across our core businessunits while optimizing our margins,” said JohnArbuthnot, CEO of Delta 9. “ We will continueour relentless focus on cost and operational efficiencies andstrengthening our balance sheet to deliver sustained, profitablegrowth for our shareholders. We believe that wenow have the necessary scale and platform to create sustainableshareholder value. We expect our Canadian retail network to continueto grow at a normalized pace while our internal focus on cost savingscontinues to produce tangible results. We look forward to updatinginvestors on our improved performance throughout the rest of2024.”
| Consolidated Statement of Net Income(Loss) |
| Q2 2023 |
| Q3 2023 |
| Q4 2023 |
| Q1 2024 |
| Revenue |
| $ 18,252,096 |
| $18,436,279 |
| $17,474,584 |
| $16,489,915 |
| Cost of Sales |
| 13,039,705 |
| 13,502,045 |
| 13,860,572 |
| 11,835,302 |
| Gross Profit Before Unrealized Gain From Changes InBiological Assets |
| 5,212,391 |
| 4,934,234 |
| 3,614,012 |
| 4,654,613 |
| Unrealized gain from changes in fair value ofbiological assets (Net) |
| (1,581,124) |
| (2,210,577) |
| (1,872,737) |
| (196,418) |
| Gross Profit |
| $ 3,631,267 |
| $2,723,657 |
| $1,741,275 |
| $4,458,195 |
| Expenses |
| General and Administrative |
| 3, 087,652 |
| 2,692,636 |
| 2,065,511 |
| 3,250,776 |
| Sales and Marketing |
| 4, 043,689 |
| 4,007,626 |
| 3,849,220 |
| 3,853,500 |
| Share Based Compensation |
| - |
| 507,000 |
| 123,553 |
| 312,631 |
| Total Operating Expenses |
| $7, 131,341 |
| $7,207,262 |
| $6,038,284 |
| $7,416,907 |
| Adjusted EBITDA (Loss) 1 |
| 1,361,821 |
| 1,030,925 |
| 1,459,414 |
| 5,270 |
| Income (Loss) from Operations |
| $( 3,500,074 ) |
| $(4,483,605) |
| $(4,297,009) |
| Other Income/ Expenses |
| 1,460,388 |
| (904,602) |
| (1,767,757) |
| (1,976,536) |
| Net Income (Loss) |
| $(2,039,686) |
| $(5,388,207) |
| $(6,064,766) |
| $(4,935,248) |
| Basic and Diluted Earnings (Loss) PerShare |
| $(0.02) |
| $(0.03) |
| $(0.02) |
- Adjusted EBITDA is anon-IFRS measure, and is calculated as earnings before interest, tax,depreciation and amortization, share-based compensation expense, fairvalue changes and other non-cash items.
A comprehensive discussion of Delta 9’s financialposition and results of operations is provided in the Company’sManagement Discussion & Analysis for the three-month period endingMarch 31, 2024, filed on SEDAR on May 15, 2024, and can be found at www.sedar.ca .
2024 First Quarter Results ConferenceCall
A conference call to discuss the above results isscheduled for May 16, 2024. The conference call will be hosted thatday at 11:00 a.m. Eastern Time by John Arbuthnot, Chief ExecutiveOfficer, and Jim Lawson, Chief Financial Officer, followed by aquestion-and-answer period.
| DATE: |
| May 16, 2024 |
| TIME: |
| 11:00 am Eastern Time |
| Dial in # |
| 1-800-717-1738 |
| REPLAY: |
| 1-888-660-6264 |
| Replay passcode: |
| 78391 # |
For more information contact:
Investor & MediaContact :
Ian Chadsey VP Corporate Affairs
Mobile :204-898-7722
E-mail : ian.chadsey@delta9.ca
About Delta 9 Cannabis Inc.
Delta 9 Cannabis Inc. is a vertically integratedcannabis company focused on bringing the highest quality cannabisproducts to market. The company sells cannabis products through itswholesale and retail sales channels and sells its cannabis grow podsto other businesses. Delta 9's wholly-owned subsidiary, Delta 9Bio-Tech Inc., is a licensed producer of medical and recreationalcannabis and operates an 95,000 square foot production facilityin Winnipeg, Manitoba,Canada . Delta 9 owns and operates a chainof retail stores under the Delta 9 Cannabis Store brand. Delta 9'sshares trade on the Toronto Stock Exchange under the symbol"DN" and on the OTC under the symbol "DLTNF". Formore information, please visit www.delta9.ca.
Disclaimer forForward-Looking Information
Certain statements in this releaseare forward-looking statements, which reflect the expectations ofmanagement regarding the Company’s future business plans and othermatters. Forward-looking statements consist of statements that are notpurely historical, including any statements regarding beliefs, plans,expectations or intentions regarding the future. Forward lookingstatements in this news release include statements relating to: (i)the Company’s plans to establish a chain of cannabis retail storesacross Canada; and (ii) the anticipated production capacity of theCompany’s planned cannabis processing center. Such statements aresubject to risks and uncertainties that may cause actual results,performance or developments to differ materially from those containedin the statements, including all risk factors set forth in the annualinformation form of Delta 9 dated March 31, 2024, which has beenfiled on SEDAR. No assurance can be given that any of the eventsanticipated by the forward-looking statements will occur or, if theydo occur, what benefits the Company will obtain from them. Readers areurged to consider these factors carefully in evaluating theforward-looking statements contained in this news release and arecautioned not to place undue reliance on such forward-lookingstatements, which are qualified in their entirety by these cautionarystatements. These forward-looking statements are made as of the datehereof and the Company disclaims any intent or obligation to updatepublicly any forward-looking statements, whether as a result of newinformation, future events or results or otherwise, except as requiredby applicable securities laws.
Copyright (c) 2024 TheNewswire - All rights reserved.