HEXO (NYSE:HEXO) announced results for its fiscal 2020 third quarter before the market open on Thursday. For the period, which ended April 30, the Canadian cannabis producer reported gross revenue of 30.9 million in Canadian dollars, up 30% quarter over quarter. Its net revenue, which excludes excise taxes, also jumped 30% to CA$22.1 million, exceeding analysts' consensus estimate of CA$20.3 million.
On adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), the company posted a loss of CA$4.3 million. That was, however, an improvement from fiscal Q2's adjusted EBITDA loss of CA$8.5 million.
HEXO reported a net loss of CA$19.5 million, or CA$0.07 per share. This was worse than the Q2 net loss of CA$7.8 million, or CA$0.04 per share. It also missed the analysts' average estimate of a net loss of CA$0.05 per share.
The cannabis producer's sales increased last quarter, primarily due to higher demand for its Original Stash value brand. Recent launches of new hash and oil extract drop products also contributed to HEXO's higher revenues. The wider net loss stemmed mainly from a significantly lower unrealized gain on changes in the fair value of biological assets in Q3 as compared to Q2.
HEXO hopes to achieve positive adjusted EBITDA in the first half of its fiscal 2021. The company is also looking to expand into Colorado's hemp-derived CBD beverage market with its partner Molson Coors (NYSE:TAP).