- Cannabis company HEXO Corp (TSX:HEXO) has posted improving figures in its third quarterly report of the financial year
- Notably, both gross and net revenue are up 30 per cent to C$30.9 million and $22.1 million respectively, when compared to the previous quarter
- HEXO’s quarterly performance resulted in a net loss of $19.5 million, a substantial improvement on the previous quarter’s net loss of $289.2 million
- With financial markers continuing to improve, HEXO expects to post a positive adjusted EBITDA in the first half of fiscal 2021
- HEXO Corp (HEXO) is up 6.67 per cent and is trading at $1.43 per share
Cannabis company HEXO Corp (TSX:HEXO) has posted improving figures in its third quarterly report of the financial year.
Notably, both gross and net revenue are up 30 per cent, to C$30.9 million and $22.1 million respectively, when compared to the previous quarter. The company attributes the rise to organic sales growth, bolstered by new product releases during the quarter.
This resulted in adjusted earnings before interest, tax, depreciation and amortisation of negative $4.3 million, having the company’s quarterly earning loss in the previous quarter.
With earnings continuing to improve, HEXO expects to post a positive adjusted EBITDA in the first half of fiscal 2021.
HEXO’s quarterly performance resulted in a net loss of $19.5 million, a substantial improvement on the previous quarter’s net loss of $289.2 million.
Turning to the pandemic, individual provinces have been able to determine if cannabis suppliers and producers are considered essential services, leaving the industry in uncertain waters.
Despite this, HEXO stated that access to legal cannabis has been largely maintained across the country.
In fact, HEXO has noted a broad uptick in sales across the industry during March, largely due to customers stockpiling cannabis during the pandemic.
Commenting on the pandemic, Sebastien St-Louis, CEO and co-founder of HEXO, thanked the company’s staff for their efforts during a challenging period.
“I’d like to take this opportunity to thank the HEXO team who has worked tirelessly during the COVID 19 pandemic to keep the doors open and ensure the safety of our employees and our customers.
“We could not do this without you, we recognize and appreciate your efforts. It’s thanks to your hard work that we closed the third quarter delivering on our financial goals, even in the face of adversity,” he said.
HEXO Corp (HEXO) is up 6.67 per cent and is trading at $1.43 per share at 1:25am EDT.
