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

PayPal Holdings (PYPL) Q1 2021 revenue up 31%; earnings beat

PayPal Holdings Inc. (NASDAQ: PYPL) reported stronger-than-expected earnings and revenues for the first quarter of 2021. Shares of the payment service provider gained during Wednesday’s extended trading session soon after

Infographic: How Twilio (TWLO) performed in Q1 2021

Twilio (NYSE: TWLO) reported first quarter 2021 earnings results today. Revenue increased 62% year-over-year to $590 million. GAAP net loss widened to $206 million, or $1.24 per share, compared to

Uber Technologies reports Q1 loss of 6 cents per share: Infographic

Uber Technologies (NYSE: UBER) reported first-quarter 2021 financial results after the regular market hours on Wednesday. The ride-hailing company reported Q1 revenue excluding the UK accrual of $3.5 billion, up

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