Hexo Corp. shares hit a fresh record low Wednesday after the company reported fiscal third quarter results that failed to meet analyst expectations. It also announced 450 job cuts in its latest effort to turn the beleaguered cannabis giant around.
Hexo, Canada’s biggest cannabis producer by market share, reported third-quarter revenue climbed by 101 per cent to $45.6 million from a year earlier but fell 14 per cent from the prior quarter amidst ongoing competition in the Canadian market.
The Gatineau, Que.-based company said it lost $146.6 million in the quarter while taking an $83.1 million impairment charge tied to the closure of its Belleville, Ont. production facility. It also said it would take a $14.6 million charge related to an inventory write-down.
Despite leading Canada’s recreational cannabis market with a 9.7 per cent share, according to industry data tracker Hifyre, Hexo has been suffering from the same woes plaguing the rest of the industry. An oversupplied market led by a glut of producers combined with a fickle consumer base and an onerous taxation regime has led many of Canada’s pot companies to struggle to report profits.
To read the complete article, go to www.bnnbloomberg.ca
