The Cronos Group’s latest earnings report reveals a surge in revenue growth since legalization. Chronos’ revenue has almost tripled according to their latest quarterly reports.
The cannabis company, whose primary operations are in Toronto, has benefited from the legalization of recreational marijuana which recently occurred in Canada this past October 17. However, the company still suffered a loss due to cannabis prices also plummeting for the same reason, the average price falling from C$8.01 to C$7.32.
Reporting a net loss of C$7.04 million, or roughly $5.3 million dollars, the cannabis company averaged a four cent loss a share. This loss comes after the company made a profit of C$1.1 million, with overall sales rising an astonishing 186%. In addition, this last quarter was responsible for the weed company selling over five hundred kilograms of product, giving the diverse organization a 213% increase in revenue over the previous quarter.
Obviously, the legalization of recreational marijuana was a major contributor to this sudden increase in sales. The demand for marijuana and other cannabis products has already become significantly higher now that it’s legal and will continue to do so. According to a Chronos’ company official, it’s still too early to tell which specific products of the organization’s recreational brands were selling best.
In addition to these brands, Spinach and Cove, Chronos also has one hundred percent ownership over medicinal brands such as Peace Naturals Medicinal Cannabis and Original BC (OGBC) and 21.5% of Whistler Medical Marijuana Company (WMMC). The official also added that prices would depend on the product mix and in which province it was sold.
The marijuana producer is expected to begin staggered harvesting to further boost production. The company executive said their new facility, referred to as Building 4, has already begun production and it is believed that harvesting of the first crop will begin before the end of the year. Harvesting will then take place every three days with mass production being reached by the second quarter of next year.
Chronos already sells in Prince Edward Island, Nova Scotia, British Columbia, and Ontario, representing over fifty percent of the population in Canada. However, the growing marijuana company expects to secure additional listings in other provinces as soon as peak production capacity is reached.
In related news, the company has partnered with two companies which focus their production on cannabinoids, which is the chemical compounds found in marijuana. Both THC and CBD are cannabinoids, but CBD doesn’t get a person high and is also said to have anti-inflammatory or soothing properties.
Through a partnership with one company, Technion Research, Chronos will examine compounds which may be used for skin-care products and treatments. The other company, Ginkgo Bioworks, will focus on the production of these cultured cannabinoids and how to make them more customer accessible. The sales from these companies, as well as Chronos’ other medicinal marijuana companies, combined with their recreational sales will definitely continue to make a difference in their revenue.
According to the company executive, Chronos is striving to build the most innovative marijuana company in the world. The company seeks to develop and research both THC products as well as CBD. Their goals are to learn and create different combinations that will have specific medicinal and therapeutic benefits or psychoactive effects.
If all goes according to plan, Chronos will most definitely continue to increase their revenue while providing the industry with desired products. Time will tell.