GATINEAU, Que. — Hexo Corp. reported a net loss of $11.1 million in its latest quarter, up from a year earlier, when it reported a loss of $690.3 million, which included $616 million in one-time impairment charges.
The Gatineau, Que.-based cannabis company's net revenues for the second quarter of the company's financial year were $24.2 million, down 54 per cent from a year earlier and down 32 per cent from the previous quarter.
Hexo attributed the year-over-year lower net revenues to decreased market share and performance in Ontario, Alberta and Quebec.
It attributed the decline in net revenues from the previous quarter to a variety of factors including Quebec competitors cutting prices and some products being placed on hold because of pricing reductions in Ontario.
President and CEO Charlie Bowman said while cannabis prices have dropped sharply across the market, it's Hexo's view that slashing prices isn't a sustainable strategy.
Chief financial officer Julius Ivancsits said the company's focus on achieving profitability is yielding solid results, noting that the company saw positive net income before tax for the first time in its history.
This report by The Canadian Press was first published March 16, 2023.
Companies in this story: (TSX:HEXO)
The Canadian Press