NASDAQ$CRON

Cronos Group Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Achieved record quarterly net revenue, driven by growth in Canada, Israel, Germany, and the United Kingdom.

Cronos Group reported a strong second quarter in 2024, achieving record net revenue of $27.8 million, a 46% increase year-over-year. This growth was driven by strong performance in Canada, Israel, Germany and the UK. The company is focused on quality and innovation, maintaining a strong balance sheet.

  • Net revenue increased by 46% year-over-year to $27.8 million.
  • Canada revenue increased by 46% and Israel Revenue increased by 27% year-over-year.
  • Gross profit increased by $3.2 million from Q2 2023.
  • Adjusted EBITDA improved by $4.9 million from Q2 2023.

Headline financials

Total Revenue

$27.8M

Previous: $19M+46.0%
EPS

-$0.02

Previous: -$0.02+0.0%
Capital Expenditures

-$2.45M

Previous: -$1.3M-89.0%
Free Cash Flow

-$11.2M

Previous: -$9.66M-16.1%
Net Income

-$8.76M

Previous: -$8.36M-4.7%
Operating Income

-$15.6M

Previous: -$20.6M+24.5%
Gross Profit

$6.3M

Previous: $3.1M+103.2%
R&D Expense

$962K

No prior period
Stock-Based Comp

$2.24M

Previous: $2.34M-4.3%

Revenue & EPS history

Cronos · Revenue · Quarterly

$27.8M

Q2 2024+46%vs Q2 2023
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

Cronos · $20.1M total across 2 segments · Q1 2023

  • Israel and Other
    $19.5M-14.1%
  • Canada
    $649K-72.1%

Forward guidance

The Company reiterates its previously announced operating expense savings target of $5 to $10 million on a standalone basis in 2024. Due to the additional $51 million investment in Cronos GrowCo, we no longer anticipate that our net change in cash will be positive in 2024.

Tailwinds

  • Operating expense savings target of $5 to $10 million on a standalone basis in 2024 primarily driven by savings in general and administrative, sales and marketing and research and development.
  • Organizational and cost savings initiatives are intended to position the Company to drive profitable and sustainable growth over time.
  • The investment to expand Cronos GrowCo's purpose-built cannabis facility will aid our ability to service existing markets
  • The investment to expand Cronos GrowCo's purpose-built cannabis facility will potentially take advantage of additional growth opportunities.
  • Cronos continues to monitor the conflict involving Israel, Hamas, Iran and other stakeholders in the region and the potential impacts the conflict could have on the Company’s personnel and business in Israel

Headwinds

  • Operating expense savings target excludes the impact of the consolidation of Cronos GrowCo's results into the Company's financial statements.
  • Due to the additional $51 million investment in Cronos GrowCo and resulting facility expansion, we no longer anticipate that our net change in cash, defined as the sum of cash and cash equivalents and short-term investments will be positive in 2024.
  • Cronos continues to monitor the conflict involving Israel, Hamas, Iran and other stakeholders in the region (the "Middle East Conflict") and the potential impacts the conflict could have on the Company’s personnel and business in Israel and the recorded amounts of assets and liabilities related to the Company’s operations in Israel.
  • The extent to which the Middle East Conflict may impact the Company’s personnel, business and activities will depend on future developments which remain highly uncertain and cannot be predicted.
  • It is possible that the recorded amounts of assets and liabilities related to the Company’s operations in Israel could change materially in the near term.

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 2024

Historical avgQ2 2024

-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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