Cannabis Innovator Cronos Group Sees Revenue Jump 181% During Q1
Cronos Group Inc (NASDAQ:CRON) saw its revenue spike 181% during the first quarter of 2020.
The Toronto-based company revealed the number in its latest earnings report, which was released Friday.
Cronos, like other cannabis companies, has been dealing with the effects of the coronavirus outbreak.
“Despite the challenges and uncertainty posed by the COVID-19 pandemic, we remain agile and focused as a business," Cronos CEO Mike Gorenstein said in a prepared statement.
"Our brand portfolio continues to launch innovative products to consumers as we adapt to an online-first distribution model in both the U.S. and Canada. We continue to reach our stakeholders and consumers through creative digital marketing. And our product innovation and R&D projects continue to progress."
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Cronos reported an operating loss of $45.1 million in the first quarter versus a $10.1 million loss in the same period last year. The loss was driven by an increase in general and administrative expenses, the company said, including an internal review costs of $4.4 million related to the restatement of the company's 2019 interim financial statements, higher sales and marketing costs related to brand development and research and development costs related to its deal with Ginkgo Bioworks Inc.
The two companies announced a partnership in September 2018 to produce cultured cannabinoids.
Cronos also reported an increase in headcount.
Net income for the three-month period was $75.7 million, or 20 cents per share. That's down from $313.9 million, or 33 cents per share, a year ago.
Net revenue totaled $8.43 million versus $3.004 million a year ago.
Cronos shares were trading down 1.43% at $5.51 at the time of publication Friday.
Photo courtesy of Cronos Group.
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