Categories AlphaGraphs, Cannabis, Earnings

Cronos Group (CRON) Q1 profit dips 76% amid continued growth of cannabis

Cronos Group Inc. (NASDAQ: CRON) reported a 76% dip in earnings for the first quarter of 2020 due to higher operating expenses as well as lesser gain on revaluation of derivative liabilities.

Revenue soared by 181% primarily driven by continued growth in the adult-use Canadian cannabis market, sales resulting from the launch of cannabis vaporizers to the Canadian market, including both adult-use and direct-to-consumer, and the inclusion of the Redwood acquisition in our financial results.

Cronos Group (CRON) Q1 2020 earnings review

The company incurred an inventory write-down of $8 million, on dried cannabis and cannabis extracts, primarily driven by fixed-price contracts negotiated prior to cannabis product price compression due to broader trends of oversupply in the Canadian market. Cronos anticipates further inventory write-downs in the short-term due to pricing pressures in the marketplace and the impact of its operational repurposing of the Peace Naturals Campus.

The company’s manufacturing sites have adjusted in order to comply with the current COVID-19 guidelines provided by local and federal governments. The Company has reduced the number of personnel working on-site at its production facilities in the US, Canada, and Israel to essential employees, and implemented work-from-home policies where appropriate.

Cronos Group’s distribution channels continue to see disruptions globally due to the COVID-19 pandemic. Online cannabis stores throughout Canada have remained operational.

Past Performance

Most Popular

Stitch Fix (SFIX) Stock: Will the innovative biz model survive virus-led slump?

The business world is still struggling to come out of the virus-induced slowdown, but it seems almost every retail segment benefited from the pandemic at some point. The vaccination drive

General Mills (GIS): Three factors that are expected to help drive growth for the food company going forward

Shares of General Mills Inc. (NYSE: GIS) were up 3.2% on Wednesday after the company delivered better-than-expected results for the first quarter of 2022. Net sales rose 4% year-over-year to

IPO Alert: Allvue Systems sets IPO terms, to raise around $290 million

It is estimated that the alternative investments industry has expanded at a compound annual rate of 10.2% over the past ten years and had $11 trillion in assets under management

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top