HEXO Corp (TSX: HEXO) (NYSE: HEXO) posted its preliminary financial report for the fiscal fourth quarter ended July, sharing expected net revenue for the quarter to be around CA$14.5 million to CA$16.5 million. Analysts expected CA$24.8 million.
It has also withdrawn its financial outlook for fiscal 2020, projecting net revenue for the year to reach around CA$46.5 million to CA$48.5 million.
“Fourth quarter revenue is below our expectation and guidance, primarily due to lower than expected product sell through,” said Sebastien St-Louis, CEO and co-founder of Hexo Corp. “Over the past quarter, we began re-configuring our operations to focus on high-selling strains and initiated a new sales strategy that we believe will meaningfully improve performance. We plan to discuss these in more detail on our upcoming earnings call.”
See Also: Hexo Analysts React To Resignation Of Cannabis Company's CFO: 'What Don't We Know?'
Delays in retail store openings and in obtaining government approval for cannabis derivative products were among the causes that made the company withdraw its financial outlook.
“Withdrawing our outlook for fiscal year 2020 has been a difficult decision. However, given the uncertainties in the marketplace, we have determined that it is the appropriate course of action, “ said St-Louis.
Hexo will post its final financial results on Oct. 24 for the fiscal year ended July 31.
The stock traded 22.2% lower at $2.86 per share in Thursday's pre-market session.
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