Delta 9 Cannabis posts company-record $14.2M in revenue for 4Q on retail sales strength

Delta 9 Cannabis Inc (TSE:DN) (OTCQX:DLNTF) posted strong quarterly and year-end results on Wednesday evening including a company-record 4Q revenue of $14.2 million and $52 million for the year.

The quarterly figure was a 34% increase compared to the $10.6 million in the year-ago quarter, while the firm’s 2020 revenue total was up 64% from 2019 levels of $31.8 million.

Winnipeg-based Delta 9 saw its retail sales increase by 109% in 2020 to $32.2 million, while its wholesale and B2B numbers also increased compared to 2019.

READ: Delta 9 Cannabis announces grand opening of its eleventh cannabis retail store, and eighth in the Province of Manitoba

Sequentially, the firm’s net revenue increased by 9% quarter-over-quarter from the $13.1 million figure it delivered in 3Q.

The bulk of Delta 9’s revenue was derived from its retail stores in Canada, which reported $10.2 million in sales for the three-month period ending December 31, 2020. The group processed more transactions and higher average transaction sizes compared to 3Q, while the total number of grams sold in stores also increased.

On the wholesale front, the firm produced around 2.1 million grams at a total cost per gram of $0.80, selling 1.2 million grams at an average price per gram of $3.57.

The group’s net loss came in at $3.2 million or $0.04 per share, but Adjusted EBITDA came in at $1.9 million compared to a loss of $474,000 in the previous quarter.

Accelerated revenue

“Our focus on disciplined, profitable growth has paid dividends for Delta 9 as we are reporting record Adjusted EBITDA and record year over year and sequential revenue results,” CEO John Arbuthnot said in a statement accompanying the numbers.

“Delta 9 Cannabis continues to execute its vertically integrated strategy as it continues to accelerate revenue growth and implement prudent control costs. We are incredibly proud of our 300 plus employees for helping make this a record year for Delta 9.”

One of Canada’s original cannabis companies, Delta 9 sells products through its wholesale and retail sales channels and markets its cannabis ‘Grow Pods’ to other businesses.

The company announced the opening of its eleventh Delta 9 Cannabis retail store in March 2021.

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Story by ProactiveInvestors