Marijuana companies have seen impressive growth in the past few years, and cannabis investors have finally come out of the woodwork to try to take advantage of the businesses that have made the most progress early on. Cronos Group (NASDAQ:CRON) has been among the handful of cannabis companies that were quick enough on the draw to get listed on major U.S. exchanges early on, and that advantage has earned it a following among marijuana investors trying to get in on the ground floor in identifying future leaders of the space.
Coming into Tuesday’s third-quarter financial report, Cronos investors expected modest losses but big gains in revenue and production volume. That’s what Cronos delivered, and the company has high hopes that the rollout of recreational cannabis in the Canadian market should help it stay on an upward trajectory for the remainder of 2018 and beyond…
Cronos hits a high
Cronos Group’s third-quarter results showed the explosive growth that the marijuana industry has enjoyed this year. Revenue jumped 186% to 3.76 million Canadian dollars, surpassing the CA$3.56 million projections among those following the stock for the top line. Cronos did lose more money than most had anticipated, with red ink of CA$7.27 million, working out to CA$0.04 per share, or double the consensus forecast among investors.
From a fundamental perspective, Cronos managed to achieve a lot of expansion in a short period of time. The marijuana producer managed to sell 514 kilograms of cannabis during the third quarter, up 213% from the 164 kilos of marijuana in the third quarter of 2017. Of that amount, 397 kilos came from dry cannabis sales, which is up 142% from year-ago levels. Cronos also reported cannabis oil sales of 117 kilograms, which brought in CA$1.07 million and represented almost 30% of the company’s overall revenue.
However, there were a few numbers that weren’t as encouraging…
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