HEXO Achieves Positive EBITDA In Q2, Reports 94% YoY Increase In Revenue

Cannabis company Hexo Corp. HEXO HEXO has achieved a positive adjusted EBITDA of $202,000 in the second quarter of 2021.

This represents the seventh consecutive quarter of adjusted EBITDA improvement for the Ottawa-based company.

Hexo also generated $32.8 million in total net revenue, up by 94% year-over-year and 12% over the quarter.

Non-beverage Canadian adult-use revenue went up by 72% sequentially. In addition, adult-use net revenue increased by 10.5% over the same period.

“Our continued focus on delighting consumers has seen us increase our market share across Canada while maintaining the number one position in Quebec,” the company’s CEO and co-founder Sebastien St-Louis stated.

Here’s a breakdown of what the second-quarter (Q2) earnings report showed:

• Total net revenue for the six months ended Jan. 31 amounted to $62.3 million
• The consolidated gross margin hovered around 35% in the second quarter
• Total net loss amounted to $20.8 million in the second quarter compared to roughly $4.2 million in the previous period
• Operating expenses for the quarter amounted to $25.5 million, while loss from operations was approximately $7 million.

Last month, Hexo opted to buy Zenabis Global Inc. ZENA for $235 million in an all-stock transaction.

St-Louis is “excited” to merge with Zenabis, as the transaction is posied to “place HEXO solidly in the top three position among licensed producers for Canadian adult-use cannabis sales, based on the most recent interim quarterly financial statements.”

The company recently hired Charles Bowman to manage US operations and help with operations, supply chain, and logistics.