Wednesday, July 2, 2025

Cronos Reports First Quarter Revenues of $8.4 Million, Writes Off $8.0 Million In Inventory

Cronos Group (TSX: CRON) (NASDAQ: CRON) reported its first quarter 2020 financial results early this morning, with revenues of US$8.4 million on a consolidated basis, however the firm reported a loss on a gross basis due to inventory writedowns, and an overall operating loss of US$45.0 million.

While top line revenue was up on a quarter over quarter basis from the firms fourth quarter 2019 revenues of $7.3 million, this is about where the positive aspects of the quarter end. The company generated $8.4 million in sales during the quarter, however they then had to write off $8.0 million in cannabis and cannabis extract inventory due to previously entered supply contracts at prices higher than the market can bare. This write down follows a $24.0 million write down that the company took last quarter.

Cronos as a result ended the quarter without even making a gross profit, with a gross loss of $6.5 million.

The long term viability of the company is also in question, given that Cronos generated $38.5 million in expenses while recording that $8.4 million in sales. The largest expense was that of general and administrative at $23.7 million, up from $7.2 million in the comparable period. Sales and marketing came in at $7.1 million as well, while research and development amounted to $4.6 million. The firm managed to post a positive net income of $75.7 million due to a gain on a derivative liability of $113.4 million.

Looking at the firms balance sheet, cash and cash equivalents decreased over the quarter from $1.2 billion to $1.1 billion, while short term investments declined to $206.2 million from $306.3 million. Inventory climbed from $38.1 million to $43.1 million, representing numerous quarters worth of inventory still sitting in storage. Current liabilities decreased to $1.4 billion from $1.6 billion during the quarter.

In terms of liabilities, Cronos saw its accounts payables decrease marginally, from $35.3 million to that of $34.2 million. The largest change is associated with the aforementioned derivative liability, which declined from $297.2 million to $166.2. Total current liabilities as a result fell from $332.9 million to $201.5 million.

Cronos Group last traded at $5.59 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.

2 Responses

Video Articles

Gold Drilling Scaled to 60,000 Meters: How Big Can This Get? | Roger Rosmus – Goliath Resources

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Cronos Group Sees CEO Retire, Gorenstein Returns To Helm

After less than two years on the job, Kurt Schmidt has retired as the chief...

Monday, March 21, 2022, 08:32:05 AM

Week Ahead: U.S Cannabis Earnings Expectations For CRON, CURA, IIPR And More

Cannabis investors are facing a harsh 2023 as shares of the largest U.S cannabis companies...

Sunday, February 26, 2023, 01:28:00 PM

Are Big Liquor And Tobacco Bankrolling Cannabis, Or Killing It?

Markets have been unkind to cannabis investors, and made certain fundamentals-based business bloggers, who were...

Saturday, June 6, 2020, 12:13:26 PM

Cronos: Raymond James Remains Bullish Despite Revenue Miss

Cronos Group (TSX: CRON) (NASDAQ: CRON) reported its first-quarter financial results on Friday, May 7th....

Tuesday, May 11, 2021, 05:47:00 PM

Raymond James: Cronos Financials A “Relative Non-Event”

On February 26th, Cronos Group (TSX: CRON) (NASDAQ: CRON) reported fourth quarter and full year...

Sunday, February 28, 2021, 01:40:00 PM