Cronos’s first-quarter earnings
Cronos Group (CRON) reported its first-quarter earnings results on May 9. The company reported 6.9 million Canadian dollars in revenue, a rise of ~133% YoY (year-over-year) from 2.9 million Canadian dollars.
Excluding excise taxes, the company’s net revenue rose 120% in the period. The company’s growth in revenue was driven by recreational cannabis’s legalization in Canada.
Cash balance increase
Following the company’s earnings release, it was down ~7.5% as of 12:07 PM EDT on May 9. While the company missed analysts’ estimates, it stressed that its partnership with Altria had provided it with the resources to compete in the global market.
At the end of the quarter, Cronos Group had a total cash balance of 2.4 billion Canadian dollars, a significant increase from the 32 million Canadian dollars it had in the previous quarter.
Cronos Group’s earnings appeared to dampen investors’ sentiments in an already weak market. During the first half of the day, Green Thumb Industries (GTBIF) was down 5%, Canopy Growth (WEED) was down 2.9%, Aphria (APHA) was down 2.4%, and the Horizons Marijuana Life Sciences ETF (HMMJ) was down 3% as of around noon.
With more companies set to report their earnings, investors may want to sit out given the volatility that could affect the values of these cannabis stocks.