On Monday, HEXO (HEXO) reported results from the first quarter of its fiscal 2021, and the numbers weren't half-bad as far as marijuana companies go.
For the period, which ended Oct. 31, the cannabis company's gross revenue was just over 41.3 million Canadian dollars ($32.3 million) -- the highest in its history. It was also up 14% on a quarter-over-quarter basis, and topped the year-ago figure by 114%.
While HEXO again booked a net loss -- of nearly CA$4.2 million ($3.3 million) -- that was much narrower than in previous periods. The quarter-ago shortfall was nearly CA$170 million ($133 million), while the company lost CA$66 million ($52 million) in the same period of fiscal 2020.
According to Zack's, HEXO's revenue came in slightly higher than the average analyst estimate, while its net loss was slightly smaller than projected.
The company attributed its top-line improvement to sales that increased throughout Canada. It said that it was No. 1 in market share in the francophone province of Quebec. It was also top dog in the beverage category, where its net revenue rose by 54% on a quarter-over-quarter basis. This was due largely to its recently launched Truss joint venture with America's Molson Coors.
HEXO also noted that it had been successful in its campaign to rein in costs. "We made extraordinary gains toward profitability this quarter, as we continue to optimize production, persist in our war on [costs of goods sold], and focus on reducing our [selling, general, and administrative expenses]," the company quoted CEO and co-founder Sebastien St-Louis as saying.
HEXO's stock closed up by 1% on Monday, in contrast to the 0.4% decline of the S&P 500 index.