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.
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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.
