Cronos Australia will pay a dividend to shareholders after reporting a profit after tax of A$6 million in 2022.

The company is believed to be the first ASX-listed medicinal cannabis company to reward investors who will receive one cent per ordinary share.

The dividend follows a strong financial performance since Cronos merged with CDA Health in December 2021.

Rodney Cocks: rewarding shareholders

Revenue for the combined group jumped 208% to almost $67m in the 12 months to June 30, while after tax profit soared 326% to $6.04m.

The company has $16m of cash and cash equivalents “driven largely by the significant growth in receipts from customers”.

Shares in Cronos climbed 7.25% to close Monday trading at $0,37c.

Chief executive and executive director Rodney Cocks said: “This is, yet again, another first for Cronos Australia, being the first ASX-listed medicinal cannabis company to report a profit and now the first to declare a dividend.

“The company has achieved record growth during the 2022 financial year and it is gratifying that the company can share its success with its shareholders in a very tangible way.”

He added that Cronos was “well positioned to deliver further growth and shareholder value”.

The company reported encouraging results across its business units with Burleigh Heads Cannabis “well exceeding” forecasts.

BHC sold 486,000 units during the financial year, an increase of 270% on FY21, while 13 new agreements were struck adding an additional 62 products to CanView, the firm said.

Almost 950 pharmacy accounts and 277 doctor accounts were added to the platform, taking the numbers to 2,808 and 721 respectively.

“Pleasingly, the average monthly spend of pharmacy accounts through CanView is increasing as the company’s education courses and engagement programs help pharmacies to confidently dispense medicinal cannabis,” the company said.

More to follow.

Steve has reported for a number of consumer and B2B titles over a journalism career spanning more than three decades. He is a regulator contributor to health journal, The Medical Republic, writing on...

Leave a comment