By Adriano Marchese
HEXO Corp. on Tuesday reported a widened loss in its fiscal first quarter, despite a rise in revenue, and said that it expects to generate positive cash flows over the next year thanks to a new strategic plan.
The Canada-based cannabis company said it recorded a net loss was 116.9 million Canadian dollars, the equivalent of US$91.3 million, for the three months ended Oct. 31, compared with a loss of C$68 million a year ago.
Total revenue for the period rose to C$50.2 million from C$38.8 million.
HEXO said that it has launched a new strategic plan and forecast positive cash flow within the next four quarters based on incremental cash flow of C$37.5 million in fiscal 2022 and an additional C$135 million in 2023.
The company said that over the next two years, this total is expected to be C$175 million.
HEXO said that new measures under the strategic plan include a reduction of manufacturing and production costs, streamlining and simplifying its organization structure, and accelerate growth through organic market share gains.
"We are taking immediate steps through our new strategic plan, the Path Forward, to strengthen our capital position, improve operations, accelerate organic growth and complete our transformation to be cash flow positive from operations within the next four quarters," President and Chief Executive Scott Cooper said.