Delta 9 Cannabis (TSX: DN) provided guidance for its third quarter financials last night, indicating that the firm is expecting revenues to be between $6.3 million and $6.9 million for the three months ended September 30, 2019. Full results will be released next Wednesday after the close of markets.
The guidance for the third quarter is a notable decrease in quarter over quarter sales. Delta 9 Cannabis recorded revenues of $8.9 million for the second quarter of 2019, with retail cannabis revenue accounting for the largest portion at $3.5 million. Last quarter saw a significant increase of $2.1 million in business to business activities, which likely is the reason behind the now declining quarter over quarter revenues.
On a year over year basis, revenues remain up significantly, with the third quarter of 2018 seeing revenues of only $1.2 million.
In terms of cannabis production, Delta 9 indicated that the firm harvested 871 kilograms of dried cannabis during the quarter, compared to 675 kilograms in the previous quarter. While the firm last quarter indicated that it has an annual capacity of 5,350 kilograms with recent licensing, Delta 9 still has a ways to go before obtaining that target.
Cash cost of production was also reportedly up $0.03 during the quarter to $1.08, however the total cost of production has preliminary data of remaining the same on a quarter over quarter basis at $1.21.
Delta 9 Cannabis is currently trading at $0.57 on the TSX.
Information for this briefing was found via Sedar and Delta 9 Cannabis. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
