Cronos Group (TSX: CRON) (NASDAQ: CRON) this morning reported its fourth quarter and full year fiscal 2020 financial results. The company reported fourth quarter consolidated net revenue of $17.0 million, along with a loss of $111.7 million. For the full fiscal year, the company reported revenues of $46.7 million, along with a net loss of $75.3 million.
Revenues were up on a quarter over quarter basis, growing 50.0% from $11.4 million to $17.0 million. However, the company has managed to post a gross loss yet again thanks to inventory impairments, with the firm reporting a loss of $14.9 million for the quarter on a gross basis.
On an annual basis, things did not look much better. The company overall saw its revenue grow 97% year over year from $23.8 million to $46.7 million, yet still posted a gross loss of $25.8 million, compared to a gross loss of $17.6 million in the prior year, leaving investors wondering what the company is doing. Writedowns for the year amounted to $26.1 million, which is on top of the $46.5 million cost of sales reported by the company.
Things fail to get any better when looking at operating expenses, with the company reporting total operational expenses of $43.5 million for the quarter, a figure many multiples higher than net revenue. The largest expense line item here is general and administrative, which came in at $19.5 million, followed by sales and marketing of $13.5 million and research and development of $7.4 million.
The company was also further impacted over the quarter by a decline in its gain on derivative liabilities under the other expenses heading, which declined by $53.5 million as the result of a rising share price, and contributing significantly to the firms overall net loss for the quarter.
Looking to the balance sheet, the company saw its cash position fall from $1,097.8 million to $1,078.0 million, while short term investments rose from $202.9 million to $211.8 million. Receivables were up slightly, to $8.9 million from $6.1 million, while inventory tumbled from $56.4 million to $44.0 million. Total current assets overall fell from $1,394.0 million to $1,372.2 million.
Accounts payable meanwhile rose from $39.0 million to $42.1 million, while its derivative liabilities climbed significantly, rising from $102.7 million to $163.4 million. Overall, total current liabilities grew from $142.9 million to $206.8 million.
Cronos Group last traded at $13.58 on the TSX.
Information for this briefing was found via Sedar, Sedi and Cronos Group. The author has no securities or affiliations related to these organizations. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.