Cronos Group Inc. (CRON) announced financial results for the fourth quarter and fiscal year ended December 31, 2017, with fourth-quarter sales of $1.6 million, an increase of 274%. Annual sales for fiscal 2017 were $4.1 million, a 636% increase over 2016’s $554,000.
The company also recorded a gross profit for 2017 of $7.2 million versus 2016’s gross profit of $1.9 million. The net income for 2017 was $2.4 million, which was a nice improvement over 2016’s net loss of $1.1 million. The diluted net income per share for 2017 was one cent per share versus 2016’s loss of two cents per share.
“We are building Cronos Group with a focus on the long-term and 2017 set the foundation for the explosive growth we have already started realizing in 2018,” said Mike Gorenstein,” CEO of Cronos Group. “We are extremely proud of all that our team has accomplished and look forward to a year of rapid increases in sales, commencing distribution in new markets, further developing disruptive intellectual property and launching new iconic brands.”
Beacon Securities analyst Vahan Ajamian said, “Revenue for the quarter was $1.6MM – right in the middle of the implied range previously provided of $1.3-$1.9MM, but below our forecast of $1.8MM and the other analyst’s forecast of $2.0MM.”
Sales increased by $3.5 million, or 636%, to $4.1 million in FY 2017. The average selling price of whole flower is $8.50 per gram and processing costs are estimated to be $0.82 per gram with selling costs estimated to be $0.97 per gram. Cronos strengthened liquidity by $89.6mm, including a $40.0mm senior secured credit facility and $49.6mm in gross proceeds from three common share offerings.
So far in 2018, the company listed on the NASDAQ exchange and announced a joint venture with MedMen in the U.S.
Cronos also put a lot of effort into the rebranding of Peace Naturals with new packaging, a new logo, a revised website, a new shopping portal experience, and new products such as strain-specific oils and limited edition cultivars.
In addition, Cronos launched Peace Naturals strain-specific cannabis oils without using ethanol. In a company statement, Cronos said, “This is important because of the “entourage effect,” or the concept that all cannabis compounds work together synergistically to yield the desired therapeutic effect.” On January 22, 2018, Peace Naturals received a dealer’s license pursuant to the Narcotic Control Regulations and CDSA from Health Canada for the possession, sale, transportation, and delivery of controlled substances including cannabis, tetrahydrocannabinol and cannabidiol. The license allows Peace Naturals to export medical cannabis extracts, including concentrated oil and resin products, internationally.
International
The company said that 15% of its sales came from Germany. On the earnings call, the company said that everything was on track for Israel and while there has been market noise about disruptions, they have not experienced any. Cronos launched a strategic joint venture in Israel, with Israeli agricultural collective settlement Kibbutz Gan Shmuel to produce and distribute medical cannabis.The company announced a strategic joint for a venture in Australia for the research, production, manufacture, and distribution of medical cannabis and it owns a 50% equity interest in Cronos Australia.
Stock Performance
There are currently three analysts covering the company according to Yahoo Finance with an average price target of C$7.85 for the stock trading on the Toronto Exchange. That stock is currently trading at C$8.88. The stock on the NASDAQ exchange was lately trading at $7.14, down from its 52-week high of $10.39, but higher than its year low of $5.12.
One comment
Bob
April 30, 2018 at 12:02 pm
This company are the criminals in Cannabis in Canada. Tax havens fund Canadian pot companies They are Tax evaders and money launders.
They took advantage of offshore funds
ABCANN GLOBAL
Cayman Islands: $ 12.4 million
Guernsey: $ 150,000
AURORA CANNABIS
Cayman Islands: $ 32.5 million
Barbados: $ 202,500
CANNTRUST HOLDINGS
Cayman Islands: $ 2 million
Bahamas: $ 549,000
Switzerland: $ 110,000
Belize: $ 50,000
Channel Islands: $ 75,000
SUPREME CANNABIS CORPORATION
Switzerland: $ 100,000
Belize: $ 100,000
Bahamas: $ 130,000
Cayman Islands: $ 10.5 million
Guernsey: $ 366,000
United Arab Emirates: $ 25,000
CANNABIS WHEATON INCOME CORP
Singapore: $ 10,000
Cayman Islands: $ 20.5 million
Switzerland: $ 20,000
HYDROPOTHECARY
Cayman Islands: $ 15 million
United Arab Emirates: $ 700,000
Bahamas: $ 751,500
DELSHEN THERAPEUTICS (48 North)
British Virgin Islands: $ 3 million
Switzerland: $ 200,000
CRONOS GROUP
Singapore: $ 225,000
NEWSTRIKE RESOURCES
Bahamas: $ 47,500
Singapore: $ 70,000
Switzerland: $ 24,400
EMBLEM CANNABIS CORP
Panama: $ 200,000
Switzerland: $ 188,650
Bahamas: $ 308,550
Cayman Islands: $ 8.3 million
Dominica: $ 47,190
Belize: $ 40,250
British Virgin Islands: $ 21,275
Isle of Man: $ 57,500
Luxembourg: $ 69,000
GOLDEN LEAF HOLDING
Bahamas: $ 308,000
Cayman Islands: $ 5.7 million
INVICTUS ®
Seychelles: $ 765,000
Cayman Islands: $ 14.13 million
Switzerland: $ 27,000
Luxembourg: $ 78,750
United Arab Emirates: $ 10,500
MARICANN GROUP
Cayman Islands: $ 9.76 million
Bahamas: $ 50,000
THE GREEN ORGANIC DUTCHMAN
Singapore: $ 9900
Hong Kong: $ 47,850
Barbados: $ 99,825
Bermuda: $ 115,500
Cayman Islands: $ 553,000
Monaco: $ 34,980
United Arab Emirates: $ 24,750
Dominica: $ 123,750
Luxembourg: $ 23,098
Switzerland: $ 50,000
Curacao: $ 11,500
Aruba: $ 5750
Panama: $ 80,500
Malta: $ 10,000
British Virgin Islands: $ 10,000
Belize: $ 75,000
Marshall Islands: $ 10,000
HARVEST ONE CANNABIS
Cayman Islands: $ 4.37M
Luxembourg: $ 600,000
Belize: $ 99,750
Bahamas: $ 225,000
Hong Kong: $ 499,999
WEEDMD
Cayman Islands: $ 2.28 million
Bahamas: $ 25,000
DELTA 9 BIOTECH
Belize: $ 22,000
Cayman Islands: $ 25,000
Singapore: $ 300,000
DOJA CANNABIS
Cayman Islands: $ 12.5 million
Bahamas: $ 70,000
INDIVA LIMITED
Cayman Islands: $ 199,500
FV PHARMA
Panama: $ 50,000
Malta: $ 50,000
Hong Kong: $ 2 million
Belize: $ 50,000
Bahamas: $ 10,000
SUNDIAL GROWERS
Bermuda: $ 540,000
TOTAL OFFSHORE FUNDS: $ 165.2 MILLION
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