Source: Dmytro Tyshchenko, Shutterstock
Stocks of HEXO Corp (TSX:HEXO) took off in the premarket hours on Thursday, March 18, up by as much as 10 per cent. Once the markets opened, the pot stock registered a spike of roughly eight per cent at the time of writing this (9.39AM EST).
The stock price jump comes in the wake of the Canadian pot manufacturer releasing its latest financial results earlier in the day.
On the Toronto Stock Exchange (TSX), HEXO stock secured a growth of nearly 107 per cent year-to-date (YTD) and of about 272 per cent in the past one year as of Wednesday. It also accumulated an average trading volume of nearly three million in the last one month.
How did HEXO perform in the latest quarter results, which appear to be spiking its stock price? Let’s find out.
HEXO Corp (TSX:HEXO) Latest Financials
HEXO had hit a bit of setback amid the pandemic last year, leading it to take cost control measures, including the sale of its Niagara facility.
In its second fiscal quarter ending 31 January 2021, however, HEXO recorded a 94 per cent year-over-year (YoY) increase in its total net revenue of C$ 32.8 million. The company also reported achieving positive adjusted EBITDA in the latest three-month period, recording the seventh quarter of adjusted EBITDA improvement in a row.
HEXO said that it incurred a loss of C$ 20.8 million in the latest fiscal quarter, though it was significantly down from that of C$ 298.16 in Q2 FY20.
The Ottawa-based pot producer saw a 72 per cent YoY increase in its non-beverage Canadian adult-use revenue in Q2 FY21. Its adult-use net revenue also expanded by 10.5 per cent in latest quarter, registering a growth in this segment for the fifth consecutive quarter.
The second quarter of fiscal 2021 also saw HEXO sign a definitive arrangement agreement to acquire fellow pot company Zenabis Global Inc (TSX:ZENA). The transaction, which has been valued at C$ 235 million, is currently awaiting approvals from regulatory bodies and shareholders, HEXO said in its latest quarterly report.