As of March 18, the analysts covering Cronos Group stock expect the sales to increase almost 4.5x. In the fourth quarter, the company is expected to report sales of 9 million Canadian dollars, which is almost 459% year-over-year growth from 1.61 million Canadian dollars in the fourth quarter of 2017. Sequentially, the company’s revenues are estimated to grow 139%. The growth will likely be fueled by the recreational cannabis segment.
Unlike Cronos Group’s peers (HMMJ) including Aphria (APHA), Canopy Growth (WEED), and Tilray (TLRY), the company has a partnership with a tobacco company. Altria (MO) has an ~45% stake in Cronos Group. The partnership gives Cronos Group capital to invest in capacity expansion and research and development.
Canopy Growth has similar backing from Constellation Brands. HEXO (HEXO) has a partnership with Molson Coors. The partnerships will likely benefit these cannabis companies compared to cannabis players without partnerships.
Next, we’ll discuss what to expect from Cronos Group’s profitability.