Hexo Corp Reports Q2 2021 Revenues Of $32.8 Million, Net Loss Of $20.8 Million

Hexo Corp (TSX: HEXO) (NYSE: HEXO) reported their fiscal second quarter 2021 financial results this morning, reporting net revenues of $32.8 million, along with a net loss of $20.8 million for the period. The company reported adjusted EBITDA of $202.

On a quarter over quarter basis, revenues were up 11.6% from the $29.4 million recognized in the first quarter of 2021. After cost of goods sold of $32.6 million however, gross profits were down from $11.9 million in the first quarter to $11.3 million in the second quarter however, before fair value adjustments.

Operating expenses meanwhile still exceed gross profits however with little sign of improvement in this area, with operating expenses growing from $20.8 million to $25.5 million in the second quarter. Expenses largely consisted of selling, general and administrative expenses of $12.3 million, followed by share based compensation of $5.3 million and marketing and promotion of $2.1 million. Following a financing expense of $2.5 million, and a non-operating expense of $11.5 million, the company posted a net loss of $20.8 million for the period.

Looking to the balance sheet, the firms cash position declined from $149.8 million to $129.4 million over the quarter, while restricted funds grew from $31.4 million to $38.3 million. Trade receivables also grew, climbing from $22.0 million to $30.7 million, while commodities taxes recoverable climbed from $13.3 million to $14.5 million. Inventory grew substantially, climbing from $74.6 million to $82.4 million. Overall, total current assets climbed from $308.3 million to $316.7 million.

Accounts payable meanwhile were essentially flat, increasing marginally from $38.5 million to $38.6 million. Taxes payable however climbed from $4.1 million to $9.8 million, while warrant liabilities climbed from $2.7 million to $12.7 million.

Hexo Corp last traded at $9.66 on the TSX.


Information for this briefing was found via Sedar and Hexo Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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