HEXO Corp. HEXO, a leading cannabis company, reported its financial results ate Thursday for the second quarter of the 2023 fiscal year.
“HEXO held firm to our long-term strategy this quarter and remained focused on our most profitable brands and maintaining fair prices,” stated Charlie Bowman, president, and CEO of HEXO in a press release. “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.”
The company has reduced its SG&A spending by 11% or $1.5 million compared to the previous quarter, reduced its trade accounts receivable by $21 million compared to the first quarter, and paid off $40.7 million in debt. The company’s adjusted gross margin has increased to 45% from 40% last quarter, indicating a focus on profitability. The company has launched several new products that have been well received by customers, allowing them to increase the production of popular products.
Highlights
- Achieved positive net income for the first time in the company’s history.
- Adjusted gross margins increased from 40% to 45% while maintaining pricing.
- SG&A and operating expenses continued to decrease.
- Generated $5.3M in cash from operations.
- $40.7M convertible debenture paid off during the period
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