RE:RE:RE:Who keeps gaining market share?quinlash wrote: VeritasVern wrote: quebec4ever wrote: Hexo gained and Canopy lost..... From BNN Carter said Canopy Growth recently embraced the value segment with cheaper bulk options after the company lost market share and needed to spur sales. "If they can focus on growth, then maybe [Canopy] can win back some of its market share," he said.
So Hexo gained due to bulk options and now that Canopy is into bulk means it's game on. So they will compete for bulk market share and so will others and there goes the profit margin as it becomes a race to the bottom. Sorry that is not a sustainable strategy to make profit. But then again did Hexo think they would be allowed to take market share without a fight. Bye bye sequential gains as that is now out of the cards and so does the voodoo accounting last quarter.
Vern,
The profit margin that HEXO has reported is 40%, the profit margin reported by Canopy Growth is 9%. The higher the profit margin the more money you are making per sale of each of your products. If HEXO wanted to go toe to toe with canopy growth and compete on pure pricing they could literally drop their margin by 9% on each of their products and run Canopy Growth into the ground. As stated by the CEO in the last Call Transcript. HEXO is expecting to become EBIDTA positive in the first half of their 2021 Fiscal year. Canopy Growth has withdrawn their guidance on when they expect to be EBIDTA postive. HEXO is NOW IN their fiscal year 2021 and the first half of that reporting year ends Jan 30, 2021. Next QTR report is expected out from HEXO Oct 23 to Oct 26th.
Best Regards
Q
I just " wonder" how you remain so calm Q.......your absolutely 100% right.....Hexo has such an incredible strategy since Hydropothecay.Of course the goal remained the same with adjustments on how to achieve it;)