NASDAQ$CRON

Cronos Group Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Cronos Group's Q2 2020 results were announced, marking entry into the Israeli medical cannabis market and progress across global operations amidst industry shifts.

Cronos Group reported a net revenue increase of $2.2 million compared to Q2 2019, driven by growth in the Canadian adult-use market and the inclusion of the Redwood acquisition. However, the company experienced a decrease in gross profit due to increased cost of sales and an inventory write-down.

  • Net revenue increased by $2.2 million year-over-year, driven by Canadian cannabis market growth and cannabis vaporizer sales.
  • Cronos Israel commenced sales of PEACE NATURALS™ branded cannabis to the Israeli medical market.
  • Gross profit decreased due to higher cost of sales and a $3.1 million inventory write-down.
  • The company expanded distribution of cannabis vaporizer devices in the Canadian adult-use market.

Headline financials

Total Revenue

$9.88M

Previous: $7.68M+28.7%
EPS (adj)

-$0.19

Previous: $0.17-211.8%
Capital Expenditures

-$13.3M

Previous: $10.8M-223.6%
Free Cash Flow

-$120M

Previous: -$53.7M-123.9%
Net Income

-$107M

Previous: $596M-118.0%
Operating Income

-$34.8M

Previous: -$40.9M+15.1%
Gross Profit

-$2.95M

Previous: -$14.6M+79.8%
Cash & Equivalents

$1.11B

Previous: $1.21B-8.0%
Total Assets

$1.91B

No prior period
Stock-Based Comp

$2.55M

Previous: $2.65M-3.8%

Revenue & EPS history

Cronos · Revenue · Quarterly

$9.88M

Q2 2020+28.7%vs Q2 2019
Beat estimate in 3 of 7 quarters(43%)
ActualEstimate

Revenue by segment

Cronos · $9.88M total across 2 segments · Q2 2020

  • Israel and Other
    $7.71M
  • Canada
    $2.17M

Forward guidance

Due to ongoing developments and uncertainty resulting from the COVID-19 pandemic, it has been difficult to predict the continuing impact that COVID-19 will have on the Company. The Company anticipates further inventory write-downs due to pricing pressures in the marketplace, as well as increased marginal production costs at the Peace Naturals Campus.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-1.8%

Avg return

Earnings day

-1.4%

Avg return

5 days after

+3.8%

Avg return

30 days after

34%

13 / 38 earnings

Positive

+35.6%

Q3 2020

Best reaction

-19.2%

Q2 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+7.5%+3.1%+7.5%
Q4 2025-3.6%-6.1%-9.7%
Q3 2025+0.4%+2.9%+1.6%
Q1 2025+8.2%+10.3%+7.0%
Q4 2024+8.1%+9.2%-3.2%
Q3 2024+10.2%+2.0%-0.5%
Q2 2024-0.9%+5.0%-3.6%
Q1 2024+7.4%+13.6%-5.8%
Q4 2023-10.6%-12.8%+15.5%
Q3 2023+4.2%+6.3%+11.1%
Q2 2023-3.8%-5.5%+13.7%
Q1 2023-5.5%-13.1%-14.6%
Q4 2022+1.0%+1.0%-10.0%
Q3 2022-10.1%-1.0%-6.2%
Q2 2022-15.4%-11.5%-14.5%
Q1 2022+5.3%+15.5%-0.4%
Q4 2021-1.4%-10.9%+8.7%
Q3 2021-11.1%-12.1%-4.7%
Q2 2021-2.6%-6.6%-12.3%
Q1 2021-4.3%-6.0%+13.0%
Q4 2020+2.2%-4.4%-13.9%
Q3 2020+35.6%+31.2%+55.8%
Q2 2020-19.2%-20.5%-22.8%
Q1 2020-5.7%-13.4%+18.1%
Q4 2019-9.9%+3.0%+7.6%
Q3 2019-10.1%-22.3%-9.7%
Q2 2019-7.4%-3.5%-17.3%
Q1 2019-0.4%-1.4%+3.1%
Q4 2018-11.2%-10.2%-19.5%
Q3 2018-3.9%+1.3%+34.7%
Q2 2018+9.4%+12.2%+73.4%
Q4 2017-8.5%+4.1%+18.1%
Q1 2018-7.9%-5.0%+5.6%
Q3 2017-7.2%
Q2 2017+1.3%
Q1 2017-5.1%
Q4 2016-0.9%
Q3 2016-1.6%
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q3 2014
Q2 2014
Q3 2013
Q2 2013

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