- HEXO Corp. (HEXO) slid 2.0 per cent after a sobering report about its place in the cannabis industry
- Brokerage ATB highlighted appreciable liquidity, dilution, and going-concern dangers for the pot stock and its inventory
- However, the company’s Q2 2023 financial report released this week showed a first-ever positive net income
- HEXO Corp. (HEXO) opened trading at C$1.22 per share
HEXO Corp. (HEXO) slid 2.0 per cent since a sobering report about its place in the cannabis industry.
Brokerage ATB highlighted appreciable liquidity, dilution, and going-concern dangers for the pot stock and its inventory.
However, the company’s Q2 2023 financial report released this week showed a first-ever positive net income.
The company improved total net income to $0.7 million, compared to a net loss of $56.3 million from Q1 of fiscal year 2023.
$5.3 million cash was generated from operations in Q2 2023, an improvement of $34.1 million, compared to $28.8 million of cash used in Q1 2023 and an improvement of $40.6 million compared to $35.2 million of cash used in Q2 2022.
An adjusted EBITDA loss of $2.4 million was recorded, an increased loss of $1.8 million from Q1 2023, however, when compared to Q2 2022, Adjusted EBITDA has improved by $3.2 million. Net revenues decreased 26 per cent to $24.2 million, compared to $35.8 million in Q1 2023 and decreased 57 per cent compared to $52.8 million of net revenue in Q2 2022.
The company also reported flat general and administrative expenses compared to Q1 2023 and significant improvement compared to Q2 2022 with cost-savings of $12 million.
Speaking on these figures, Charlie Bowman, President and CEO of HEXO, explained that the company’s focus remained on its most profitable brands and maintaining fair prices.
“While cannabis prices have dropped sharply across the market, it is our view that slashing prices is not a sustainable strategy. We’re confident our products will continue to deliver excellent value to customers and shareholders alike.”
HEXO is a licensed producer of innovative products for the global cannabis market. Its brands include Redecan, UP Cannabis, Original Stash, 48North, Trail Mix, Bake Sale, and Latitude.
Year-to-date, HEXO stock has lost 24 per cent and has fallen 83 per cent since this time, last year.
HEXO Corp. (HEXO) opened trading at C$1.22 per share.