Cronos Sales Rise On U.S. Contribution, But Losses WidenAugust 11, 2020
Toronto, Ontario-based cannabis producer Cronos Group reported revenue growth but also steep losses for its fiscal first half through June 30. The company’s net revenue grew 72% to approximately $18.3 million for the six-month period, with $4.4 million of that coming from the U.S. The addition of the U.S. to Cronos’ sales was a boon to company growth, which was otherwise up about 31%.
Cronos’ operating expenses have risen across the board, with higher sales and marketing costs related to brand development, increased research and development spending, and upscaling activity at Cronos Fermentation, among other costs, driving an adjusted operating loss of $72 million compared with a $27 million loss a year earlier.—Danny SullivanSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.