Delta 9 Cannabis Inc (OTCQX:VRNDF) recently provided its revenue guidance for its first quarter ended March 31, 2019, through which it revealed that it expects its revenue to be between $5.4 million and $5.8 million.
The $5.4 million to $5.8 million revenue estimates for Q1 2019 are courtesy of Delta 9’s preliminary results or the results that the company has so far experienced. Additionally, the company expects its revenue for the quarter to be more than 1,500% higher than the Q1 revenue it reported in 2018 based on the strong performance so far. The firm plans to release the final results on May 30 through a conference call that will be held after market close.
“We are well positioned with high growth revenue streams from our wholesale, retail and business-to-business operations to significantly grow revenues throughout this year,” pointed out Delta 9 CEO, John Arbuthnot.
Delta 9’s CEO also noted that the company achieved a record high revenue in Q1 2019 and that it expects the year-over-year revenue figures to show a noteworthy increase. The performance reflects the Canadian cannabis firm’s strategic growth blueprint that it has been executing in Canada’s cannabis market. Delta 9 attributes the strong revenue in Q1 to its strong position in the Manitoba retail market, as well as the wholesale revenue expansions in Saskatchewan and Manitoba.
The revenue expectation also highlights the company’s continued strong performance especially compared to its performance in the entire 2018 financial year. The company’s revenue for the year ended December 31, 2018 was $7.57 million USD. If the estimated Q1 2019 revenue falls within the estimated range, then it means the company will have kicked off 2019 on a high note.
The company estimated in March this year that its FY18 revenue would range between $7.6 million and $8.4 million. However, the actual revenue figure fell short of the estimated revenue figure by a small margin. Delta 9’s overall performance during the year also highlighted a significant improvement from the previous year.