HEXO Corp (TSX: HEXO;
) delivered its financial results for the second quarter of the 2019 fiscal year with gross revenue of $16.2 million an increase of 1,269% versus the same time period for last year. Revenues increased by 114% sequentially.
The company reported a net loss for the quarter of $4.3 million, which was a big improvement over last year’s net loss of $8.9 million for the same time period. Sequentially, the net loss decreased 66% quarter over quarter as a result of the increased sales and 16% reduced total operating expenses in the period.
“This quarter not only saw an exponential increase in gross revenue and production, but also saw us continue to execute on our promises including reaching a construction and licensing milestone on our 1,000,000 sq. ft. greenhouse expansion and listing on the NYSE-A,” said HEXO Corp CEO and co-founder, Sebastien St-Louis. “Just yesterday, we announced an agreement to acquire Newstrike Brands Limited. HEXO’s future is very promising, I am looking forward to continually driving shareholder value and achieving milestones with our team.”
The company reported that it produced 4,938 kg of dried cannabis, an increase of 39% over the first quarter of fiscal 2019. It sold 2,689 kg of gram and gram equivalents, an increase of 142% quarter over quarter. The revenue from gross adult-use cannabis in the three months ended January 31, 2019, exceeded total revenues fiscal 2018 by $9,858 or 200%. Oils sales represented 23% of the adult-use revenues. Adult-use sold grams and gram equivalents increased 166% to 2,537 kg from the previous quarter as the company continues to scale up and deliver on its existing supply agreements. Adult-use revenues per gram and gram equivalents increased $0.38 to $5.83 form the first quarter of fiscal 2019.
Medical revenue per gram and gram equivalent sold increased $0.03 to $9.15 during the quarter, with 152 kg sold.