Shares of Hexo Corp., an award-winning consumer packaged goods cannabis company that creates and distributes prize-winning products to serve the global cannabis market, saw its shares decline on Thursday after the company announced a sequential decline in revenue as part of its third-quarter earnings.
The Canadian licensed pot producer dropped 8.4% in afternoon trading Thursday.
For the third quarter, the company reported net revenue of C$13.02 million ($9.8 million). This is compared to $13.4 million in the fiscal second quarter. The FactSet net sales consensus was C$14.8 million.
Hexo Chief Executive Sébastien St. Louis said on the earnings call that Hexo had sequentially increased the amount of adult-recreational use pot sold by 9% to 2,700 kilograms, despite the fall.
The CEO also said that the company increased its cannabis production by 98% from the previous quarter to a total of 9,800 kilograms.
The company added 374 new employees during the quarter, to bring its total to 822 staffers at the end of the quarter and 1,100 at the time of the earnings conference call.
Hexo is planning to enter the U.S. via the cannabidiol, or CBD, market.