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Delta 9 Reports $25M In Net Revenue For First Half Of 2020

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Delta 9 Reports $25M In Net Revenue For First Half Of 2020

Cannabis company Delta 9 Cannabis Inc. (TSX: DN) (OTCQX: VRNDFreleased Monday its quarterly and half-year earnings report for fiscal 2020.

The Winnipeg, Manitoba-based company disclosed that its second-quarter and six-month net revenue amounted to $8.9 million and $24.8 million.

That’s a year-over-year increase of 46% and 71%, respectively.

John Arbuthnot, Delta 9’s CEO, said they are “pleased with the continuation of strong growth in top line revenue,” adding that results “demonstrate another quarter of profitability.”

Earnings Breakdown

Other highlights from the earnings report the company posted include:

  • Gross profit of $4.6 million for the second quarter, up by 57% compared to the corresponding quarter last year
  • 100% year-over-year increase in gross profit for the first six months of 2020
  • Net income from operations was $1.7 million in the second quarter, versus a loss from operations of $1.1 million in the same period of 2019
  • During the first half of this year, net income from operations amounted to $4.6 million, versus a loss from operations of $2.1 million for the same period last year
  • Adjusted EBITDA of $0.7 million for the three months ended June 30, compared to a negative adjusted EBITDA of 0.7 million in the same quarter of 2019
  • For the first six months of 2020, the company posted adjusted EBITDA of $2.4 million, versus a loss of $2.6 million in 2019, for the same period
  • Its working capital was $24.5 million, and total assets amounted to $77 million during the second quarter.

Operational Milestones

Over the quarter Delta 9 entered several supply deals and also received Health Canada’s approval for its newly built cannabis processing center.

In June, the company agreed to supply Ontario Cannabis Retail Corporation, which is doing business as Ontario Cannabis Store, with branded cannabis products and accessories. Simultaneously, OCS opted to provide Delta 9 with point-of-sale data related to its product sales.

Courtesy photo

 

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