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- Creso Pharma (CPH) has tabled its preliminary final report for 2020, showing a drop in revenue associated with COVID-19
- The medicinal cannabis company’s revenue dropped 32.5 per cent year on year, to total $2.45 million at the end of 2020
- CPH also posted a deeper net loss after tax of $30.8 million, up from the $15.3 million net loss recorded at the end of 2019
- The results are being attributed to the pandemic, which curtailed re-orders and also a number of one-off expenses
- Nevertheless, by the end of 2020, Creso began seeing signs of recovery and has reported record sales and purchase orders in the first quarter of 2021
- The company’s subsidiary Mernova Medicinal also posted strong revenue growth over 2020, which is expected to continue across 2021
- Finally, Creso has today signed an initial agreement to have anibidiol products distributed in the U.S.
- Shares in CPH have opened down 3.57 per cent at 20.3 cents
Creso Pharma (CPH) has tabled its preliminary final report for the 2020 financial year, revealing a drop in revenue associated with the COVID-19 pandemic.
The medicinal cannabis company has revealed its revenue dropped 32.5 per cent year on year, totalling $2.45 million at the end of 2020.
The healthcare stock also posted a deeper net loss after tax of $30.8 million, up from the $15.3 million net loss after tax it recorded at the end of 2019.
CPH explained that the revenue and loss results are primarily due to the pandemic, which curtailed re-orders, but also because of a number of one-off expenses.
These include the $1.4 million loss Creso recorded when disposing of its 74 per cent share in its joint venture Creso Grow.
However, by the end of 2020, CPH had begun showing signs of recovery – ending the year with an increased bank balance of over $6 million, up from $2.8 million in 2019.
The cannabis company also announced record sales and purchase orders were recorded during the first quarter of 2021.
Additionally, Creso’s subsidiary Mernova Medicinal posted strong revenue growth over 2020, including increasing its revenues by over $354,000, and that growth is expected to continue across 2021.
“Unlike many other companies in the cannabis sector, the Company ended the year in a stronger financial position, having more than doubled its cash reserves compared to 2019,” CPH said in a statement.
“The board is pleased with the achievements over the last 12 months
notwithstanding the challenges of Covid-19, and its encouraged by the positive signs of recovery it has experienced in the last six months,” the company added.
Along with its preliminary full-year report, Creso has also revealed today that it’s signed an initial agreement to have its anibidiol products distributed in the U.S.
The range of CBD and hemp animal health products could be sold by CERES Natural Remedies, with an initial target of US$5 million (around A$6.45 million) in sales over two years.
Shares in Creso Pharma are trading down 3.57 per cent at 20.3 cents per share at 10:59 pm AEDT.
