RE:What is driving the Bottom line???GaillardDeshaie wrote: 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.
Let's be a little logic. This is revenue and they talk about EBITDA, so profit are very far away. If the companies all have problems to generate revenues how do you expect them to grow by a very good percentage with so much competition? Will the population double? It will take years but the companies will take over each and others with shares only deal, no cash, as Trulieve did, (no a buy now, but a profitable one with a P/E ratio too high. So the best to buy when it is the time but not now).
Let's be serious, we all thought we would become milionaire and even Trulieve will not have a so high % of increasing revenue. It will be the horse when it is legal in the US in ... how many years?
I am done shorting HEXO, FAF is written in the sky.