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Cronos Drops After Cannabis Firm Swings to Quarterly Loss

Cannabis provider Cronos swings to a fiscal-first-quarter loss.
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Shares of Cronos Group  (CRON) - Get Cronos Group Inc Report dropped after the Toronto cannabis company swung to a fiscal-first-quarter loss on a more than doubling of revenue. 

The loss was 31 cents a share, compared with profit of 17 cents a share in the year- earlier quarter. Revenue more than doubled to $17 million from $7.3 million. 

"We are poised to build upon the growth we experienced in 2020 as we continue to push cannabinoid innovation and differentiated product offerings under our portfolio of brands,” Kurt Schmid, president and CEO, said in a statement. 

The company said the revenue growth was driven by gains in the Canadian recreational cannabis market, sales in the Israeli medical market and growth in the U.S. segment. 

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Cronos grew its business in Israel in 2020 after receiving all certifications and licenses necessary to begin operating in the country. Earlier this month, Cronos signed a distribution deal with the largest pharmacy chain in the country. 

Cronos Group shares at last check were off 2.2% at $10.55. They'd dropped 5.4% on Thursday. But the stock is still up more than 55% year to date. 

Earlier this month, Aurora Cannabis  (ACB) - Get Aurora Cannabis Inc. Report CEO Miguel Martin sat down with TheStreet to discuss his company’s second quarter results.

"First and foremost is improving the overall quality of our products. ... Secondly is the launch of new products. ... Third is a focus on premium products and market accretive products. ... We think we will be on the path to grow our recreation business," Martin said.