Hexo Corporation hexoInc., a leading cannabis company, reported its financial results on Thursday for the second quarter of its 2023 fiscal year.
“HEXO stayed firm on its long-term strategy this quarter and focused on maintaining our most profitable brands and fair prices,” said Charlie BowmanPresident and CEO of Hexo Press release, “While cannabis prices have declined sharply across the marketplace, it is our view that price reductions are not a sustainable strategy. We are confident that our products will continue to provide excellent value to customers and shareholders alike.”
The company decreased its SG&A expense by 11% or $1.5 million compared to the prior quarter, decreased its trade accounts receivable by $21 million compared to the prior quarter, and paid down $40.7 million in debt. The company’s adjusted gross margin 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 production of popular products.
- Achieved positive net income for the first time in the company’s history.
- Adjusted gross margin increased from 40% to 45% while maintaining pricing.
- SG&A and operating expenses continued to decrease.
- Earned $5.3M in cash from operations.
- $40.7M convertible debentures paid out during the period
photo by Taufiq Barbhuiya But unsplash,
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga Cannabis Convention
Meet the biggest players in the cannabis industry and make deals that will drive the industry forward.
Featuring unmatched access to live company presentations, insider panels and networking, Benzinga Cannabis Capital Conference It’s where cannabis executives and entrepreneurs meet.
Join us on April 11-12, 2023 at Fontainebleau Miami Beach in sunny Florida.