HEXO Corp Net Revenue Improves Thanks To Its Beverage Sales

HEXO Corp. (TSX:HEXO) (NYSE:HEXO) posted its first quarter of fiscal 2021 net revenue of CA$29.5 million, up by 9% from the prior quarter.

Revenue improvement was driven mainly by an 8% growth in recreational cannabis sales and 54% growth in adult-use beverages.

Its gross revenue in the period reached CA$41.3 million, which is the highest Hexo ever reported, and up by 14% from the last quarter.

While the company’s adjusted EBITDA was once again a loss, it has seen an improvement for the sixth time in a row, being a loss of CA$420,000, compared to a loss of CA$2.25 million in the fourth quarter of 2020.

Consumer packaged goods cannabis company also reported it has retained the number one market share in Quebec.

At the end of the reporting quarter, Hexo had working capital of CA$250.3 million, out of which CA$149.8 million was in cash.  

“I would like to thank the entire HEXO team for the remarkable progress made in the first quarter,” stated HEXO co-founder and CEO Sebastien St-Louis. “Today’s record revenue performance reflects our commitment to providing consumers with high-quality products, at reasonable prices, for all occasions. We continue to hold the number one market share position in Quebec, while continuing to aggressively expand into other markets."

HEXO is now top four in adult-use market share by net sales dollars in Canada, St-Louis says.

"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. 

At the time of writing, Hexo’s shares were trading 4% higher at $1.04 per share.