Cronos Group Inc (NASDAQ:CRON) has released its Q4 2020 and full-year results in which net revenue was $17 million and $46.7 million, respectively.
The recreational cannabis market boosted net revenue
Kurt Schmidt, Cronos Group’s CEO, said that the Q4 2020 results summarize the perseverance and hard work the company put in this past year despite the pandemic. Going into 2021, the CEO said that he is excited about the teams supporting the company’s brands and revolutionary R&D, innovation, and the marketing campaigns the company is planning to execute.
Schmidt said that they are delighted to build upon the growth they saw in 2020 in the push for CBD innovation and differentiated offering under Cronos Group’s brand portfolio. He added that the goal this year is building a winning team through a collaborative and performance-driven culture, disruptive tech, and innovation. Equally, they expect to develop brands that enhance the company’s ability to compete via R&D and engaging in the legislative process in main markets.
In Q4, the company reported a YoY increase in revenue by $9.7 million, mainly due to recreational use market growth in Canada, medical market sales in Israeli, and the US segment growth. Cronos Group incurred an inventory write-down in the quarter of $25 million on cannabis extracts and dried cannabis due to cannabis price compression in Canada. Notably, the company could continue incurring write-downs because of pricing pressures in the market.
Cronos realized full-year revenue from the Redwood segment
Growth in the company’s US segment boosted its net revenue as the company reported a whole year for the Redwood business compared to only 117 days in 2019. Cronos Group’s net loss widened for the whole year drive by third-party purchased cannabis flower related to adult-use products and wholesale sales decline. Full-year inventory write-downs were $26.1 million.
The company’s Happy Dance™ has continued its expansion by securing the first US retailer, ULTA Beauty™. Happy Dance™ products will launch at ULTA.com and in-store at the more than 550 ULTA Beauty™ stores across the US soon.