- HEXO (HEXO) has reported a record performance for the first quarter of 2021, with C$41.3 million in gross revenue
- Net revenue for the period came to $29.5 million, representing a 9 per cent increase from the quarter before and a 103 per cent jump compared to the first quarter of 2020
- The company attributed the improved performance to its strengthening position in key markets outside of Quebec, where it currently holds the largest market share
- Despite the success, the company reported a loss of $4.2 million, representing an improvement compared to a loss of $66 million in the prior quarter
- HEXO is currently up 4.69 per cent to $1.34 per share
HEXO (HEXO) has reported a record performance for the first quarter of 2021, with C$41.3 million in gross revenue.
For the three months ending October 31, 2020, the Ottawa-based cannabis company generated almost $29.5 million in net revenue, which represents a 9 per cent increase compared to the prior quarter and a 103 per cent jump over the first quarter of 2020.
This was largely attributable to an 8 per cent increase in adult-use cannabis sales, along with a 54 per cent increase in sales of adult-use beverages.
HEXO said sales momentum generally grew across Canada, with 18 per cent of gross sales coming from Alberta, while 15 per cent came from Ontario and 6 per cent from British Columbia. These strengthening positions come on top of the company’s established presence in Quebec, where it currently holds the largest market share.
Consolidated gross margins also grew from 30 per cent to 35 per cent, which HEXO said is directly attributable to improved gross profit in its adult-use beverage segment. This came from a strong performance of Truss Beverage, which achieved positive gross profit in only its second quarter on the market.
Despite the record quarter, the company failed to achieve profitability, recording a net loss of $4.2 million. However, this figure represents a vast improvement compared to a loss of $66 million in the fourth quarter of 2020, during which HEXO took significant write downs.
“HEXO is now top four in adult-use market share by net sales dollars in Canada,” said Sebastien St-Louis, CEO of HEXO.
“We have also moved into the top beverage spot through Truss, our joint venture with Molson Coors, and have reached the number one market share position for hash, which we believe will continue to be an important category for the industry,” he added.
HEXO is currently up 4.69 per cent to $1.34 per share at 11:47am EST.