Cronos Group (NASDAQ:CRON) continues stunning investors with its strong operational and financial performance. The company has reported massive sales growth for the first quarter this year. Its sales grew 473% year over year in the first quarter. The company believes its investments in growth opportunities over the last year allowed it to post substantial revenue growth.
Cronos revenue rose sharply by 80% from the fourth quarter of last year. The company’s strategy of investing in cannabis oil is working.
Its cannabis oil sales represented 29% of domestic medical patient revenue in Q1 while the company expects its cannabis oil revenue to continue to become a more substantial part of its sales over the long-term.
Cronos has been expanding its production of strain-specific cannabis oils since Health Canada approved its new extraction laboratory in last November.
Commenting on results CEO said, “We are pleased that the strategic initiatives launched in 2017 are coming to fruition. 2017 was a building block year which set the groundwork and foundation for the results achieved in the first quarter. Cronos is focused on continuing to increase capacity to serve existing distribution and newly established markets.”
Growth Activities are Escalating
Cronos Group has been investing substantially in growth opportunities to expand their sale growth and market share in domestic and international markets.
It recently announced a strategic joint venture in Australia and it is looking to build a 20,000 sq. ft. indoor facility. This facility will have the potential to produce annual cannabis production of up to 2,000 kilograms. It has also been investing Canadian markets.
The strategic joint venture with MedMen Enterprises Canada will allow it to create a Canadian branded retail chain in provinces that permit private retailers. The company has also completed the construction of the greenhouse at Peace Naturals. The first harvest from its 28,000 sq. ft greenhouse is likely in the second quarter.
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