RE:RE:RE:RE:GREAT MONTH! GREAT COMPANY! GOOD NEWS!Molson has control of Truss so it is technically a subsiduary for Financial reporting purposes and would be consolidated.
Truss has been reported as being able to produce 200 units a minute. So 200 x 60 x 24 x 30 = 8,640,000 units x average selling price of $8 = $ 70 million x 3 = $210 million.
I have made some generous assumptions:
- they produce 24 x 7.
- they started producing July 1
- All items shipped are sales
Molson would report its share or 60% of these sales or $120 million since its 3 rd qtr is July, Aug & Sept.
Hexo would only pick up 40% of July's net income since it only picks up its share of income. However Hexo would record as sales the marijuana component of the beverages produced by Truss say 10% of $70 million.
I purchased a Hexo beverage several weeks ago and it was produced in early July 2020. This is where I got the July production date from. Truss would have tinventory of the Marjiuana ingredient on hand.
This is how I arrived at my guesses. We have no other information and we have to make assumptions. This plant is highly automated and state of the art.
I would not expect that type of facility to only operate 40 hours per week. You are also trying to stock 1000 stores across Canada plus distribution centres so you would have to produce flat out to stock the shelves. Once the stores are stocked then you only sell what the stores need to restock. If the items don't sell you would have no more orders. Comments on the board indicate that the stores were never fully stocked. So the beverages sold well. That is why I expect good results at least at Hexo. Having Molson discuss Hexo in their call is wishful thinking.