What is driving the Bottom line???Hello Hexo long's...after this 22Q1 results, we can see some numbers from recent acquisition.
So, what is driving the bottom line that ALL shareholders are looking for.
1) Revenue increase to $69,497 from $53,022 (QoQ) +31%, so growth of $16,475 coming from Redecan $13,574 (so for an annual revenu of $81m) and 48North $1,132 (so an annual revenue of $6,8m). So balance of revenue from Hexo/Zenabis = $1,769m....and Q4'21 was only 2 month for Zenabis....What is the problem?? Why there is no growth from Hexo/Zenabis? 2 answers, market competition (more players) or price war competition...I bet on price war.
2) Excise Tax .... can't escape this 28%...gggrrrr
3) Cost of goods sold: Cost increased by 121% compared to Revenue increase by 31%....
Chief Finance officer, Trent McDonald will be replaced at the latest on March 2022....
With the new man on board, CEO Scott Cooper and COB John Bell, I hope they will be focus on WHAT IS PROFITABLE? instead of trying to lead the market share.
I hope I will be able to recover my investment of my 18000 shares.
At the end of the day...Revenu really need to increase, Cost od Good reduced....and we will be back in business.
GLTA and DYOD....Gaillard.