The Question of MarginI am simply going to post this for the benefit of those who are in a short position solely based on their thoughts regarding sales margin.
HEXO has reported that they are maintaining a sales margin of 40%. The higher the percentage the higher amount of profit the company is taking in from each of its sales (google what is sales margin if you want more).
HEXO could be selling Original stash for less than 40% margin however if they are that would mean the company is actually making more than 40% on other products which they sell. The combined margin, from all sales, would work out to the 40% magin reported by the company.
If you are not familiar with how retail sales and margin calculations work then speak to a friend or someone you know who runs a small business and ask them about their margins. They will likely tell you that they try to maintain and average margin of 40% (+/-) on their sales. If you ask about specific products they will likely tell you that they have a better margin on some products vs. others.... and that they average out to their target overall margin.
Again, please note, Canopy is only reporting 9%. HEXO could literally put their products on sales for a month or two and cripple Canopy Growth, this would result in HEXO moving from the #4 supplier spot in Canada to the #3 or #2 spot.
Best Regards,
Q