3 Scary Numbers From Cronos' Second-Quarter Results
With $1.1 billion in cash and cash equivalents on hand, Cronos Group (NASDAQ: CRON) has the resources and stability that many cannabis companies envy. It also has a partner in tobacco company Altria Group, which has owned a 45% stake in the cannabis producer since 2018. Altria's $1.8 billion investment is a main reason Cronos enjoys such a large stockpile of cash today.
But stability alone isn't enough to make Cronos a good investment. Investors have concerns about the company's sales growth and the consistency of its earnings, and unfortunately, Cronos's most recent quarterly results did nothing to put those to rest. Here are three numbers from the second-quarter results that should give potential investors pause.
On a consolidated basis, Cronos's top line rose by 29% from the prior-year period, up to $9.9 million in net revenue. However, that was mainly due to $2.2 million in revenue from its U.S. segment -- a component of the Canadian company's business that didn't exist a year ago. In August 2019, Cronos acquired Redwood Holding Group for $300 million, which gave it access to the U.S. cannabidiol (CBD) hemp market, including Redwood's flagship CBD brand, Lord Jones.
Source Fool.com
