Cronos Group (TSX: CRON) (NASDAQ: CRON) has finally reported its fourth quarter and full fiscal year 2019 financial results after delaying earnings twice previously. Notably, the company has switched from reporting in Canadian Dollars to that of US Dollars. For the fourth quarter, the company reported revenues of US$7.3 million (C$10.3 million).
Revenues for the fourth quarter are a decrease from previously reported third quarter net revenues of C$12.7 million, however are an increase from the revised figure for the third quarter of C$7.6 million. Sales consisted of US$2.69 million (C$3.81 million) from the US, while US$4.61 million (C$6.52 million) was from the firms Canadian cannabis operations, with Canadian sales believed to be demonstrating a quarter over quarter decrease of US$0.73 million (C$1.03 million). The company reported a gross loss of US$20.3 million for the quarter, or a negative gross profit margin of 279%.
For the full fiscal year of 2019, Cronos reported net revenues of US$23.7 million (C$33.6 million), with a gross loss of US$17.8 million or a negative gross profit margin of 75%.
The firms cash position during the quarter increased to US$1.19 billion (C$1.69 billion) from US$1.04 billion (C$1.47 billion), while short term investments decreased to US$306.3 million (C$433.5 million) from that of US$365.3 million (C$517.0 million).
Notable items include an inventory writedown of US$24.0 million (C$33.9 million), which was largely comprised on the writedown of the value of cannabis plants and cannabis oil. Also notable is that Cronos posted an operating loss of US$63.8 million (C$90.3 million) during the fourth quarter, largely driven by inventory writedowns and increased general and administrative expenses. The firm lost US$121.4 million (C$171.9 million) for the full fiscal year.
Full financial results have yet to be filed by Cronos Group.
Cronos Group last traded at $6.34 on the Nasdaq.
Information for this analysis was found via Sedar and Cronos Group. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
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.