Toronto-based cannabis company Cronos Group reported an operating loss of $ 31,3 million for the second quarter, along with $ 40 million in coronavirus-related impairment charges on its US operations.
Net sales for the quarter ended June 30 were $ 9,9 million, an increase of 17,9% from the previous quarter. Cronos reports in US dollars.
About $ 2,2 million of that revenue came from Cronos's US operations. The remainder came from the business segment of operations in other countries, including recreational and medical sales in Canada and international interests in Australia, Colombia, Germany and Israel.
The $40 million write-down, including $35 million for Cronos' US unit and $5 million for its CBD brand Lord Jones, was attributed to margin slippage caused by pandemic-related measures. These include pay increases for production workers, discounts including free shipping and "promotional events." Cronos states that COVID-19 has not materially impacted sales or revenue growth in its operations outside the United States.
The company has failed to improve its Canadian recreational revenues, making it difficult to assess the company's performance in Canada's increasingly competitive adult market. Cronos is traded as CRON on the Toronto Stock Exchange and the Nasdaq.
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