Shares of Hexo (HEXO) were jumping 5.9% higher as of 11 a.m. EDT on Thursday. The gain came after the Canadian cannabis producer announced its fiscal 2021 second-quarter results before the market opened.
Investors liked what they saw with Hexo's results. The company generated net revenue of 32.8 million in Canadian dollars, a whopping 94% year-over-year increase and up 12% from the quarter ending Oct. 31, 2021.
Hexo's cannabis beverage business continued to perform well. Sales rose 11% quarter over quarter. The company retained its No. 1 spot in market share in the beverage category.
While Hexo posted another net loss of CA$20.8 million, the company delivered its seventh consecutive quarter of improving adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Hexo reported positive adjusted EBITDA of CA$202,000 in fiscal Q2.
The big thing to look forward to with Hexo now is its planned acquisition of Zenabis. Hexo CEO Sebastien St-Louis said the company thinks the deal will put Hexo in a position to achieve "accelerated domestic and international growth." This transaction will also put Hexo in the top three Canadian marijuana stocks based on Canadian adult-use cannabis revenue.