Hexo Corp. says its most recent quarter delivered a $52.1-million net loss as the cannabis company purged unprofitable products and streamlined its business.
The Gatineau-based firm’s first-quarter net loss compared with a net loss of more than $116.9 million a year earlier.
The loss for the period ended Oct. 31 amounted to a net loss of nine cents per basic and diluted share compared with a net loss of 46 cents per basic and diluted share a year prior.
Net revenue in the quarter totalled $35.8 million, down from $50.2 million in the same period last year.
CEO Charlie Bowman said the Gatineau firm is making “incredible progress” in its effort to turn the corner after a period of extensive recent losses.
“We’re now seeing the results of the strategic realignment we executed over the past two quarters and have successfully reset the company for long-term success,” Bowman said in a statement.
“Our laser focus on tackling the balance sheet, pulling back on those unprofitable products where our strengths in premium cultivation were not being leveraged and expanding further into opportunities where we know we can win, is paying off across the business.”
Hexo’s financial results were released at the same time as it announced a share consolidation that will combine 14 common shares into one share.
Hexo says the consolidation is expected to take place around Dec. 19 and will affect Hexo’s listings on the Toronto Stock Exchange and Nasdaq.
Earlier this year, the cannabis producer said it planned to cut costs and eliminate 450 jobs as part of a bid to make the company leaner and more efficient.
Hexo said the reduction would result in annualized savings of $30.6 million and was meant to simplify its organizational structure so costs are more closely aligned with the businesses’ size.
The company’s shares were down one cent to 16 cents in mid-morning trading on the Toronto Stock Exchange. Hexo’s stock has fallen 76 cents, or more than 80 per cent, since the start of 2022.