(Image via Delta 9 Cannabis Inc.)
One of Canada’s first vertically integrated cannabis Companies achieved this success through strong growth in its wholesale, retail, and business-to-business (B2B) revenue streams. Judging from the latest financial estimate highlights, it appears as if this growth is not slowing down any time soon.
Highlights:
The Company anticipates revenue for the three-month period ending June 30th, 2021 to be between $15.5 million and $17.25 million, an increase of up to a 33% (on the high end), compared with:
- $13.23 million for the first quarter of 2021
- $13.01 million for the second quarter of 2020
- Delta 9 anticipates revenues for the six-month period ending June 30, 2021, to be between $28.75 million and $30.5 million, compared to $24.76 million for the same period last year
Delta 9’s Chief Executive Officer, John Arbuthnot commented in a June 2021 media release on this news that the team anticipates its Q2 2021 performance will demonstrate a record revenue quarter for Delta 9 with the Company’s three business segments contributing to the success of the quarter.
“We anticipate continued growth in all three of our business segments units through the back half of 2021.”
While these are estimates, the Company expects final results will be consistent and the Company’s actual results of operations and other data could differ materially due to the completion of its financial closing procedures. Further details and management commentary are expected when Delta 9 releases the results for the Q2 2021 on August 16th, 2021, at 9:00 am EST before the market opens.
About Delta 9:
The Company owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand. It sells cannabis products through its wholesale and retail sales channels and recently held the grand opening of its 11th retail store, the eighth cannabis store in the Province of Manitoba, and Delta 9’s newest retail store in the City of Winnipeg. Its wholly-owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical and recreational cannabis as well, and operates an 80,000 square foot production facility in Winnipeg.
Investment summary:
Delta 9 Cannabis Inc. is becoming a meaningful player in the Canadian cannabis space and is proving there is still room grow over the next few years. The team has already established a history of solid revenue performance. Dating back to its financial and operating results for Q4 2020 and full year ending December 31st, 2020, record net revenues of $52 million were achieved last year, up 64% compared to $31.8 million in 2019. Retail revenue increased 109% to $32.2 million in 2020, while wholesale revenue increased 24% to $11.8 million in 2020, and B2B revenue increased 38% to $8.6 million in 2020. Gross profits came in at $17.8 million in 2020, up 105% compared to $8.7 million the year prior, while the gross profit margin was 34% in 2020 compared to 27% recorded a year earlier.
As one of the Canada’s few integrated Cannabis companies Delta 9 is well positioned to compete, and with a track record for strong execution from management, this is a name that investors should be watching.
To find out more about this Company, visit delta9.ca and invest.delta9.ca.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.
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