HEXO Corp reports $6.7 million in gross revenue for the first quarter of new fiscal year
- Sales of $5.2 million for adult-use cannabis during the first two weeks of legalization in Canada
- Creation of Truss, a partnership with Molson Coors Canada in support of the Company’s objective to partner with Fortune 500 companies in various product categories and leverage their distribution and brand platforms
- Acquisition of a scalable facility in Belleville, Ontario to establish a centre of excellence for cannabis-based consumer packaged products
- 1 million sq. ft. facility on track to be operational by end of December 2018
- First foothold in Europe: partnership in Greece to establish a Eurozone distribution centre
HEXO Corp. (TSX:HEXO) is reporting its financial results for the first quarter of the 2019 fiscal year. Gross revenue for the quarter reached $6.7 million, which includes $5.2 million in sales of adult-use cannabis in the first two weeks following legalization in Canada.
“HEXO hit tremendous milestones in the weeks following the legalization of adult-use cannabis,” said HEXO’s CEO and co-founder Sebastien St-Louis. “The Company continues to honour its commitment to executing on its plans, which has led to a significant portion of our first quarter’s $6.7 million in revenue generated in just two weeks and represents more than a 500% increase over last quarter.”
“HEXO’s first quarter financials highlight the remarkable pace of its adult-use cannabis sales and puts HEXO on-track to generate significant revenue this year”, added Mr. St-Louis. “Today, we are a world-class organization as our team continues to focus on our strategy which includes partnering with Fortune 500 companies in various product categories and leverage their distribution platforms.”
Other financial highlights include:
Approximately 1,110,000 total gram equivalents sold in the quarter versus 539,000 in total fiscal 2018
Gross revenue per gram of $5.45 in the adult-use market and $9.12 in the medical market
2% increase over last quarter in medical cannabis sales despite the new adult-use market
Filing of a shelf prospectus to make offering of up to $800 million valid for a 25-month period
Conclusion of the three-month Canada-wide Never Jaded tour featuring Wu Tang Clan, Our Lady Peace, Tristan Eaton and Matty Matheson
During the quarter ended October 31, 2018, the Company produced over 3,550 kg of dried cannabis. Certain production areas of the existing licensed facilities have been dedicated to the commissioning of the new 1,000,000 sq. ft. facility. This includes designated areas housing the mother plants to be relocated to the 1,000,000 sq. ft. facility, as well as a cutting area to supply the 1,000,000 sq. ft. facility with its first plants. The Company is ramping up towards its full production capacity, with efficiency gains and increased capacity achieved through the recently licensed 250,000 sq. ft. facility and the additional 1,000,000 sq. ft. facility, which will become operational at the end of the calendar year. The Company expects to achieve its run goal rate of 108,000 kg of annual dried flower production.
Additionally, the Company recently launched its new corporate website www.hexocorp.com. The corporate website houses information about HEXO’s career opportunities, management, corporate social responsibility program, investor relations and press releases, and links to HEXO’s brand websites.
The management discussion and analysis for the period and the accompanying financial statements and notes are available under the Company’s profile on SEDAR at www.sedar.com and on its website at www.HEXO.com. All amounts are expressed in Canadian dollars.
First Quarter 2019 Financial Results
Summary of results for the three-month period ended October 31, 2018 and October 31, 2017 (in thousands of Canadian dollars, except share and per share amounts, and where otherwise noted)
Summary of results for the three-month period ended October 31, 2018 and October 31, 2017:
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