HEXO Corp. (
TSX.HEXO) has announced “The Path Forward” – a new strategic plan to solidify itself as Canada’s leading cannabis company and position it to capitalize on international opportunities. The plan utilizes HEXO’s current assets, including its recent acquisitions and unique capabilities to drive accelerated growth and become cash flow positive within the next four quarters. This plan is underpinned by actions to strengthen its balance sheet, its executive team and its corporate governance.
Q1 2022 Highlights:
- Total net revenue increased 29% to $50.2 million from $38.7 million in Q4’21, and up 70% from the comparative quarter of fiscal 2021.
- The Company closed its acquisitions of Redecan and 48North which contributed net revenues of $13.5 Million and $1.1 Million respectively during the two months ended October 31, 2022.
- The Company’s total non-beverage gross margin before adjustments increased to 28% from 25% in the previous quarter.
- Revising expected synergies from acquisitions to over $50M from previously reported $35M.
- Forecasting positive cash flow within the next four quarters based on incremental cash flow of $37.5 million in fiscal 2022 and an additional $135 million in 2023 for a total of $175 million over the two years.
Full news release
here.
About HEXO
HEXO Corp. is an award-winning consumer packaged goods cannabis company that creates and distributes innovative products to serve the global cannabis market. The Company serves the Canadian adult-use markets under its HEXO, HEXO Plus, Up, Original Stash and Bake Sale brands and the medical market under HEXO medical cannabis.
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