TORONTO - Cronos Group Inc. reported a net loss for the second quarter of 2019 despite nearly tripling its revenue from the same time last year.
The company's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter ended June 30 amounted to a loss of $17.8 million, or 22 cents per share, compared to $2.4 million, or zero cents per share, in the second quarter of 2018.
Net revenue soared to $10.24 million, compared to $3.39 million a year ago, before marijuana was legalized.
Analysts expected revenue of $7.39 million and a loss of three cents per share, according to financial markets data firm Refinitiv.
The pot producer says higher processing costs, sales and marketing expenses and increased research and development spending ate into profits.Advertisement
Marlboro maker Altria Group Inc. holds a 45 per cent stake in the Canadian cannabis producer that it acquired for $2.4 billion.
Under that agreement, Altria can also invest up to a further $1.4 billion within four years that would increase its ownership stake in the Toronto-based pot producer to 55 per cent.
Companies in this story: (TSX:CRON)