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Cronos Group's Revenue Jumps Three-Fold In Q2

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Cronos Group's Revenue Jumps Three-Fold In Q2
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Shares of Cronos Group Inc (NASDAQ: CRON) traded higher Thursday morning after the cannabis company reported a four-fold jump in revenue year-over-year in its second quarter results.

Cronos said it earned 22 cents per share in the second quarter on revenue of CA$10.237 million. By comparison, the company reported breakeven EPS on revenue of CA$3.394 million in the same quarter last year.

The company saw an increase in kilograms sold from 477 last year to 1,584, while net product revenue per gram sold fell from CA$7.03 to CA$6.44. Cost of sales before fair value adjustments per gram sold rose 14% from CA$2.63 last year to CA$3.01 and rose 12% from CA$2.69 in the first quarter 2019.

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During the quarter, Cronos announced multiple supply chain upgrades, including an expansion of a supply agreement with MediPharm Labs (OTC: MEDIF) and a contract manufacturing agreement with Heritage Cannabis Holdings. The company also established a global research and development center for vaporizer innovation in Israel.

Cronos expanded its R&D capabilities and improved its global infrastructure network "in what has been a year of tremendous growth," Cronos CEO Mike Gorenstein said in the press release. The company continues to "capitalize on this momentum" by expanding existing relationships and "leveraging our collective resources and expertise to realize the significant potential in the growing cannabis industry."

During the second quarter, Cronos "took steps" towards an eventual expansion to the U.S. market through the acquisition of Redwood Holding's hemp-based CBD platform.

Cronos Group's stock traded higher by 85 to $15.59 in Thursday's pre-market session.

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Posted-In: israel MediPharm Labs Mike GorensteinCannabis Earnings News Top Stories Markets Best of Benzinga

 

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