Cannabis producer Cronos halves loss to $68 million on higher revenue

Canadian cannabis producer Cronos Group reported improved revenue for its latest quarter, but a bottom line that remains in the red.

The Toronto-based company reported a net loss of $68 million for the third quarter ended Sept. 30, compared to a $107 million loss in the previous three-month period.

Cronos’ revenue was $11.4 million, about 15% better than the second quarter’s $9.9 million.

The company has struggled to gain a foothold in the lucrative Canadian recreational market.

Sales of cannabis extracts declined to $1.5 million in the quarter, lower than the previous quarter’s $2 million.

Cannabis flower sales rose, but remains behind competitors.

Sales of flower increased to $8 million, up from $5.6 million in the previous quarter.

By geographic region, revenue in:

• The United States was $1.6 million.
• The rest of the world was $9.7 million.

Cronos ceased reporting its revenue in Canada even though most of the company’s sales have come from the Canadian market.

The company said it received approval to sell certain pre-rolls and oil products in Israel’s medical market.

In September, experienced consumer packaged goods executive Kurt Schmidt took the reins of Cronos, replacing Mike Gorenstein.

Cronos had $1.1 billion in cash as of Sept. 30.

Cronos trades as CRON on the Toronto Stock Exchange and the Nasdaq.