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GATINEAU, Que. – Hexo Corp reported a net loss of $11.1 million in its latest quarter, up from a year ago, when it reported a loss of $690.3 million, which included $616 million in one-time impairment charges.
Cannabis industry net income of Gatineau, Que. for the second quarter of the company’s fiscal year was $24.2 million, down 54 percent from a year ago and down 32 percent from the previous quarter.
Hexo attributed the lower year-over-year net income to declining market share and performance in Ontario, Alberta and Quebec.
It attributed the decline in net revenues from the previous quarter to several factors including Quebec competitors cutting prices and some products being placed on hold due to price reductions in Ontario.
President and CEO Charlie Bowman said that while cannabis prices have dropped rapidly across the market, it is Hexo’s view that lowering prices is not a sustainable strategy.
Chief financial officer Julius Ivancsits said that the company’s focus on achieving profitability led to strong results, noting that the company saw a positive net income before tax for the first time in its history.
This report by Canadian Magazine was first published on March 16, 2023.
Companies in this story: (TSX:HEXO)
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