Guess which ASX cannabis share just rocketed 30%

A man in a horse head mask and suit jumps for joy on a beach.A man in a horse head mask and suit jumps for joy on a beach.

The Cronos Australia Ltd (ASX: CAU) share price is pushing higher today following the release of its quarterly activities report for the quarter ended 30 June 2022.

The ASX cannabis share has since rocketed 32% into the green from the open and now trades at 29 cents apiece.

Cronos shoots higher on ‘another record quarter’

Key takeouts from the period include:

  • Record annual cash receipts from customers for FY2022 of $70 million, representing 245%
    year-on-year (YoY) growth
  • Total cash receipts of $23 million, another record quarter
  • Net positive operating cash flows of greater than $13 million for FY2022
  • Total cash now at more than $16 million at the end of FY2022
  • Record 486,000 products sold through BHC’s CanView platform during FY2022, representing
    270% YoY growth

What else happened for the ASX cannabis share?

Sales generated through the CanView platform in the June quarter totalled roughly $21 million.

This results in a quarterly compound average growth rate (CAGR) of 34% for sales made through the CanView platform, the company says.

Average gross margins are also steady between 35–40% across the portfolio. Cronos says it now has more than 160 product stock keeping units (SKUs) sold on the platform.

It sold around 165,000 units through the CanView platform last quarter. This brings the total number
for FY22 to more than 486,000.

As a result, total units sold through CanView grew by 355,000 from FY21, a YoY growth of 270%.

Finally, another 203 new pharmacies established wholesale accounts through the CanView platform. This takes the cumulative number of pharmacies at year end to 2,808.

This is “close to half of all pharmacies in Australia,” Cronos says.

Management commentary

Speaking on the announcement, Cronos CEO, Rodney Cocks said:

At the end of the first financial year after our successful merger with CDA Health, we are very pleased to close out the year with total cash receipts of nearly $70 million, positive net operating cash flows of $13 million and more than $16 million in cash. Our CanView platform has been key to these results and is the sales and distribution partner of choice for leading Australian Medicinal Cannabis suppliers.

Having now established nationwide coverage of pharmacies, we look to execute the next phase of our growth strategy with our national Medical Science Liaison team targeting further prescribers across the country. As we continue to implement our strategic plan, we are confident of delivering further sustainable growth and shareholder value in 2023.

What’s next for Cronos?

The merger with CDA Health Pty Ltd has resulted in a significant increase in Cronos’ expenditures. It has scaled up operations and therefore costs, as well.

It has retained positive net cash flows from operations for all four quarters of FY22. It is anticipated
that “the balance of the Group’s cash and cash equivalents is expected to increase over time.”

The ASX cannabis share is up 141% in the past 12 months.

The post Guess which ASX cannabis share just rocketed 30% appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/vXZoQfn

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s