HEXO Corp. (HEXO), a seed-to-sale Canadian licensed producer supplying the Canadian adult-use consumer packaged goods market announced its Q3, 2021 financial and operating results today for the period ended April 30, 2021, as follows:

Q3 Financial Highlights

(All results are presented in Canadian dollars and compared to the previous quarter. Go here to convert into other currencies.)

• Net Revenue: decreased 31.1% to $22.7M
• Gross Profit: decreased 52.4% to $8.8M
• Net Loss: reduced by 0.6% to $(20.7)M
• Adj. EBITDA: decreased to $(10.8)M from $0.2M

Q3 Operational Highlights

• Maintained number one position for market share in Quebec
• Maintained the number one position in the beverage category
• Announced the introduction of six new products to its existing Truss brand offering for summer
• Repaid its outstanding credit facility of $28,875 early, mitigating future interest and administrative costs.

Management Commentary

HEXO CEO, and co-founder, Sebastien St-Louis said:

• “At the advent of legalization, we articulated a plan to become a top three cannabis player in the Canadian adult-use market. With the acquisition of Zenabis and the announcements of intent to acquire 48North and Redecan, we are on the verge of becoming the no.1 licensed producer by recreational market share.
• While this was a challenging quarter, we maintained our number one position in the beverage category and increased our net sales outside of Quebec...
• Moving forward, we are committed to rebuilding our strain strategy and brand mix in the province of Quebec to ensure we meet consumer needs and maintain our dominant position in the province.”

Stock Performance

The stock price of HEXO, a constituent in the munKNEE Pure-Play Pot Stock Index, is +80% YTD but is down almost 10% so far today as a result of its terrible Q3 financial results reported this morning as illustrated in the chart below: