NASDAQ$CRON
Cronos Group Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Cronos faced dynamic market conditions while reducing costs and improving cash flow.
Cronos Group reported a decrease in net revenue compared to Q2 2022, primarily due to lower cannabis flower sales in Israel and an adverse price/mix in Canada. However, the company improved its net income and adjusted EBITDA through cost reduction efforts and improved balance sheet management. They are discontinuing net revenue guidance due to market turbulence.
- Net revenue decreased by $2.6 million compared to Q2 2022, mainly due to lower cannabis flower sales in Israel and an adverse price/mix in Canada.
- Gross profit decreased by $1.2 million compared to Q2 2022, driven by lower cannabis flower sales in Israel and an adverse price/mix shift in Canada.
- Adjusted EBITDA improved by $0.7 million from Q2 2022, driven by decreases in general and administrative expenses and research and development expenses.
- The company exited its U.S. hemp-derived CBD operations.
Headline financials
Revenue & EPS history
Cronos · Revenue · Quarterly
$19M
Revenue by segment
Cronos · $20.1M total across 2 segments · Q1 2023
- Israel and Other$19.5M-14.1%96.8%
- Canada$649K-72.1%3.2%
Forward guidance
Cronos anticipates that the net change in cash, defined as the sum of cash and cash equivalents and short-term investments, for the last six months of fiscal year 2023 will decline by less than $5 to $10 million. This is an improvement to the previous guidance of declining less than $25 million in the remaining nine months of fiscal year 2023. The Company maintains its expectation that the net change in cash will be positive in 2024.
Tailwinds
- Relatively consistent foreign exchange and interest rates
- The general economic conditions and regulatory environment in the markets in which Cronos participates will not materially change
- Timely receipt of interest and principal payments on the GrowCo senior secured credit facility
- Anticipated interest income of approximately $20 to $25 million for the last six months of fiscal year 2023
- Steady gross margin profile
Headwinds
- Turbulent market conditions beyond previous expectations in the markets in which we operate
- Increasing political unrest and stagnant patient growth in Israel
- Decision to exit the U.S. business
- Competitive activity in Canada
- Foreign exchange rates have had unfavorable impact on our net revenue
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 2023
-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
| Quarter | Report date | Reaction (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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