Cronos Group sinks after the release of its financial results for the first quarter

First quarter results of Cronos

Cronos Group (CRON) announced its first quarter results on May 9th. The company recorded a turnover of 6.9 million Canadian dollars, an increase of 133% year-on-year (year-on-year) compared to 2.9 million Canadian dollars.

Excluding excise taxes, the company's net sales increased 120% over the period. The company's revenues were driven by the legalization of cannabis for recreational purposes in Canada.

Increase in the cash balance

As a result of the company 's earnings release, it was down approximately 7.5% on May 9 at 12:07 pm Eastern Standard Time. Although analysts' estimates are not consistent with the company's estimates, she pointed out that her partnership with Altria provided her with the resources needed to compete in the global market.

At the end of the quarter, the Cronos Group had a total cash balance of Can $ 2.4 billion, a significant increase from the previous year's Can $ 32 million.

The results of the Cronos group seemed to dampen investor sentiment in an already weak market. In the first half of the day, Green Thumb Industries (GTBIF) lost 5%, Canopy Growth (WEED) lost 2.9%, Aphria (APHA) lost 2.4% and Horizons Marijuana Life Sciences ETF (HMMJ) lost 3% around noon.

With more companies willing to report their profits, investors may want to stay down given the volatility that could affect the values ​​of these stocks of cannabis.