Cronos Group (NASDAQ:CRON,TSX:CRON) issued its financial and operational results for its Q1 2019.
As quoted in the press release:
“In the first quarter of 2019, the business performed in line with our expectations. We continue to stay laser-focused on our strategy of building our supply chain, distribution, intellectual property and brand portfolios,” said Mike Gorenstein, CEO of Cronos Group. “We’re delighted to have officially closed our transaction with Altria and to kick off a relationship we expect to lead to significant growth and value creation. Altria’s investment and the services that Altria will provide to Cronos Group will enhance our financial resources and allow us to expand our product development and commercialization capabilities. Altria’s skills in these areas as well as its regulatory expertise position Cronos Group to compete, scale and lead the rapidly growing global cannabis industry as markets open and welcome legalization.”
Financial Results First Quarter 2019
- Net revenue was C$6.5 million in first quarter 2019, representing a 120 [percent] increase from C$2.9 million in first quarter 2018, primarily driven by the launch of the adult-use market in Canada. Net revenue increased 15 [percent] quarter-over-quarter from C$5.6 million in fourth quarter 2018, primarily driven by increased sales in CBD oil, which carries no excise tax reduction and increased sales of dry flower.
- 1,111 kilograms were sold in first quarter 2019, representing a 122 [percent] increase from 501 kilograms sold in first quarter 2018, primarily driven by increased cannabis production and the launch of the adult-use market in Canada. Kilograms sold increased 7 [percent] quarter-over-quarter from 1,040 kilograms sold in fourth quarter 2018, primarily driven by increased cannabis production.