Cronos Group reported a net revenue increase of $2.2 million compared to Q2 2019, driven by growth in the Canadian adult-use market and the inclusion of the Redwood acquisition. However, the company experienced a decrease in gross profit due to increased cost of sales and an inventory write-down.
Net revenue increased by $2.2 million year-over-year, driven by Canadian cannabis market growth and cannabis vaporizer sales.
Cronos Israel commenced sales of PEACE NATURALS™ branded cannabis to the Israeli medical market.
Gross profit decreased due to higher cost of sales and a $3.1 million inventory write-down.
The company expanded distribution of cannabis vaporizer devices in the Canadian adult-use market.
Due to ongoing developments and uncertainty resulting from the COVID-19 pandemic, it has been difficult to predict the continuing impact that COVID-19 will have on the Company. The Company anticipates further inventory write-downs due to pricing pressures in the marketplace, as well as increased marginal production costs at the Peace Naturals Campus.
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