Canadian cannabis company Hexo posts loss for Q4 and revenue that lags estimates
Hexo Corp.
HEXO,
said Friday it has a net loss of C$67.9 million ($55.0 million) in its fiscal fourth quarter to July 31, after a loss of C$169.5 million in the year-earlier period. The Canadian cannabis company did not offer a per-share breakdown. It said revenue net of excise taxes rose to C$38.8 million from C$27.1 million a year ago. The FactSet consensus was for per-share earnings of 4 cents and revenue of C$51.8 million. The company said Zenabis, which it acquired in a deal that closed June 1, contributed C$6.8 million in net revenue. The company also completed the acquisitions of Redecan and 48North Cannabis. Hexo also launched a strategic overhaul and announced the departure of Founder and CEO Sebastien St-Louis and named Scott Cooper its new CEO. Cooper came from Truss Beverage Co., a joint venture between Molson-Coors Canada
TAP,
and HEXO that is a leader in cannabis-infused drinks in Canada. Shares rose 4.9% premarket but are down 55% in the year to date, while the Cannabis ETF
THCX,
has fallen 4% and the S&P 500
SPX,
has gained 22%.
