Cronos Group Inc. (NASDAQ:CRON) (TSX:CRON) released Friday its fourth quarter and full-year 2020 financial results with a yearly net loss of $75 million, compared to a net income of $1.1 million in 2019.
Full Year Results
Consolidated net revenue for the full year reached $46.72 million — up by 97% from the prior year. In 2020, Cronos had an adjusted EBITDA loss of $98.31 million, compared to an EBITDA loss of $48.95 million in 2019.
Fourth Quarter Results
For the last quarter of 2020, Cronos disclosed a net loss of $111.71 million, which compares to a net income of $61.57 million in the fourth quarter of the prior year.
Its adjusted EBITDA for the quarter was a loss of $53.13 million, versus a loss of $51.67 million in the same period of 2019.
The company had net revenue of $17.05 million in the quarter, compared to revenue of $7.31 million in the fourth quarter of 2019. Cronos noted that the higher revenue could be attributed mostly to the advancement of the recreational market in Canada, and the sales in Israel.
The fourth quarter 2020 results are “the summation of the hard work and perseverance,” Kurt Schmidt, President and CEO of Cronos Group stated. “As we look to 2021, I’m incredibly excited about the teams we have supporting our brands and the breakthrough research and development (“R&D”), innovation and exciting marketing campaigns Cronos Group plans to execute on.”
Happy Dance, which Cronos launched with The Good Place star and New York Times best-selling author Kristen Bell, got its first big U.S. retailer, ULTA Beauty. The entire Happy Dance line of CBD products will soon be available on ULTA’s website and also across 550 UTLA Beauty stores.
In 2020, Cronos Israel obtained all needed authorizations and licenses for the growing, manufacture, and advertising of dried flower, oils, and pre-rolls in Israel. At the moment, its PEACE NATURALS dried flower and oils are available in the market.
Last year, the company’s joint venture in Canada, Cronos Growing Company Inc. finalized the building of its production facility and gained a cultivation license for the activities planned for the first phase of the project. Cronos projected the facility will commence its operations during the first half of the year.
The company’s joint venture in Latin America, Natuera, reached several milestones in 2020, including the first export of hemp-derived CBD extract to the U.S. for commercial purposes.
At the moment of writing, Cronos’ shares were down 2.87% at $10.48 per share.
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