Hexo reports Q2 total net revenue down 32% sequentially to C$24.1M

Q2 total net revenue was down 32% vs. Q1 net revenues of C$35.8M. Improved total net income in Q2 to C$0.7M vs. a net loss of (C$56.3M) from Q1."HEXO held firm to our long-term strategy this quarter and remained focused on our most profitable brands and maintaining fair prices," said CEO Charlie Bowman. "While cannabis prices have dropped sharply across the market, it is our view that slashing prices is not a sustainable strategy. We’re confident our products will continue to deliver excellent value to customers and shareholders alike." "Our continued focus on profitability is yielding solid results, including positive net income before tax for the first time in our history," noted CFO Julius Ivancsits. "SG&A spending is down 11% or C$1.5M compared to the previous quarter…Our adjusted gross margin lift to 45% from 40% last quarter, shows that we continue to align operations towards the path to profitability."