Shares of Cronos slipped more than 3% in morning trading as the Canadian cannabis producer reported 4Q revenue of US$5.6 million, significantly higher than the $1.6 million for the same period last year.
However, the company still had a net loss of $11.6 million during the quarter, or $0.06 per share. The cannabis producer swung from a profit of a penny per share in the year-ago quarter.
The Toronto-based company attributed revenue growth for the quarter to shipments to the Canadian adult-use market and a growth in cannabis oil proceeds.
Analysts were expecting to see a loss of $0.01 on earnings of $7.8 million for the quarter. Cronos missed on both metrics.
Full-year revenue for 2018 was C$19.2 million, compared with C$1.8 million in 2017 but, again, a net loss of C$0.11 per share versus a penny profit a year ago.
“Over the past year, Cronos Group has diligently focused on our strategic objectives, which culminated in our transformative partnership with Altria Group, Inc.,” said Mike Gorenstein, CEO of Cronos Group. “We’ve expanded our production footprint domestically and internationally, developed our distribution with global partnerships, launched iconic brands for the Canadian adult-use market and grown our IP portfolio with landmark research and development initiatives.”
In March 2019, Cronos closed a $2.4 billion equity investment from Marlboro cigarette maker Altria Inc. Altria now holds 45% of Cronos shares, with an option to increase its stake to 55% under the agreement.
Shares of Cronos were trading at US$19.80 in New York and slipped 1% to C$27.10 in Toronto on Tuesday morning.
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