HEXO Generates $1.4 Million Sales in Q4

HEXO Generates $1.4 Million Revenue in Q4

HEXO Corp. (TSX:HEXO) reported its financial results for the three and twelve months ended July 31, 2018, the fourth quarter of the 2018 financial year. The management discussion and analysis for the period and the accompanying financial statements and notes are available under the Company’s profile on SEDAR at www.sedar.com and on its website at ir.hexo.com. All amounts are expressed in Canadian dollars and results pertain to a period pre-legalization for the adult-use cannabis market.

Corporate Highlights

  • Formation of the joint venture ‘Truss’ with Molson Coors Canada to pursue opportunities to create non-alcoholic, cannabis-infused drinks for the Canadian marketplace
  • Supply agreements with the Ontario Cannabis Store and the British Columbia Liquor Distribution Board to supply the award-winning mist Elixir goods, in addition to Fleur de Lune, an intimate cannabis oil, in Ontario
  • First international foray with venture with Greek firm Qannabos and intends to establish a Eurozone processing, production and distribution center in Greece, for example, growth of 350,000 sq. ft. of accredited infrastructure
  • Initial harvests from new 250,000 sq. ft. greenhouse, increasing annual production capacity to 25,000 kg of dried flower
  • Foundation and framing for the 1,000,000 sq. ft. greenhouse completed (completion remains on track for December 2018)
  • Acquisition of an interest in a 2,004,000 sq. ft. facility in Belleville, Ontario, providing capacity for the production of innovative cannabis products
  • Deal with Metro Supply Chain Group contract to manage a warehouse and distribution center for Quebec adult-use webstore orders for the Société québécoise du cannabis (“SQDC”-RRB- in modern 58,000 sq. ft. facility located in Montreal
  • Strategic investment of $10 million in the independent corporate cannabis retailer Fire and Flower Inc., by way of a convertible note receivable          

Financial Highlights

  • Revenue per gram increased to $9.26 per gram equivalent from $9.24 from the previous quarter, and $9.00 in the fourth quarter of fiscal 2017
  • Revenue rose 14% to $1,410,656 quarter over quarter and the volume of cannabis dried grams and gram equivalents sold increased 13% to 152,288 in the third quarter of fiscal 2018
  • Ontario-based sales increased 15% during the quarter ended July 31, 2018
  • Weighted average cash price of dried inventory sold per gram of $0.90 held relatively stable from $0.88 per gram in the third quarter of fiscal 2018 and decreased 14% year-over-year compared to the fourth quarter of fiscal 2017
  • Cash and short-term investments were $244.8 million as at July 31, 2018, and the balance sheet remained debt-free

“The past quarter has represented many landmarks for HEXO Corp as we moved towards final preparations for the adult-use cannabis market. With two additional supply deals, this time in Ontario and in British Columbia, the organization of a joint venture with Molson Coors Canada to create cannabis-infused non-alcoholic drinks, a first step towards going global, and more, I am extremely proud of the speed at which we continue to execute on our strategic priorities,” said Sebastien St-Louis, HEXO’s CEO and co-founder, referring to its commitment to being among the top two licenced producers in Canada, to operational scalability, to brand leadership and to new product innovation.

Fourth Quarter 2018 Outcomes

READ THE FULL REPORT HERE

Published at Fri, 26 Oct 2018 16:54:45 +0000

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