Cronos Group’s earnings
On March 26, Cronos Group (CRON) reported its fourth quarter and fiscal 2018 earnings results before the market opened. The company reported total revenues of 5.6 million Canadian dollars in the fourth quarter. The revenues increased from 1.6 million Canadian dollars in the fourth quarter of 2017. For fiscal 2018, the sales increased to 15.7 million Canadian dollars. The sales rose nearly 284% from 4.1 million Canadian dollars a year ago in 2017.
In the fourth quarter, Cronos Group’s gross margins were 44%, which increased from 10% in the fourth quarter of 2017. On a fiscal basis, the company’s gross margins increased from 50% to 51.3% in 2018.
However, Cronos Group experienced an operating loss of 18.1 million Canadian dollars in 2018, which widened from ~2.1 million Canadian dollars in 2017.
In 2018, Cronos Group’s general and administrative expenses were ~17.6 million Canadian dollars. The company also incurred ~2.3 million Canadian dollars in research expenses—compared to no expenses a year ago. The company had 4.1 million Canadian dollars in sales and marketing expenses—compared to 0.5 million Canadian dollars a year ago. Cronos Group made ~4.2 million Canadian dollars in share-based payments—compared to 1.8 million a year ago.
The costs weighed down the company’s bottom line.
Cronos Group was another company that saw significant sales growth and reported a net loss. The trend mirrored other companies (HMMJ) including Canopy Growth (WEED), Aphria (APHA), and Aurora Cannabis (ACB).