Delta 9 Cannabis Inc (TSX:DN) has reported its financial and operating results for the first quarter of 2023 which saw significant growth in net revenue to $16.9 million, a 35% increase compared to $12.5 million in the same period last year.
Gross profit before changes in the fair value of biological assets also showed a positive trend, reaching $4.2 million compared to $3.0 million in the first quarter of 2022, representing a 42% increase.
Delta 9 reported a net loss from operations of $1.2 million, an improvement from the $2.9 million loss in the same period last year. Adjusted EBITDA loss for the quarter was $475,595, a significant reduction from the $1.7 million loss in the first quarter of 2022. Cash used in operations decreased to $89,530, a substantial improvement from the $2.5 million used in the same period last year.
In the results statement, Delta 9 CEO John Arbuthnot noted the company's focus on sustaining and growing revenues while optimizing their business model for positive cash flow from operations in 2023.
He emphasized the company's dedication to cost and operational efficiencies and strengthening the balance sheet to ensure sustained and profitable growth for shareholders. Arbuthnot also highlighted Delta 9's plans to generate $3 million to $4 million in efficiencies through cost-cutting measures to achieve profitability.
Delta 9 operates a 95,000-square-foot production facility in Winnipeg, Manitoba, and owns a chain of retail stores under the Delta 9 Cannabis Store brand.
Contact the author at jon.hopkins@proactiveinvestors.com