NASDAQ$CRON

Cronos Group Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Announced strategic realignment to support future growth strategies and reported an increase in consolidated net revenue.

Cronos Group's Q3 2021 saw a significant increase in consolidated net revenue, driven by growth in the adult-use market in Canada, increased sales in the Israeli medical cannabis market, and increased sales in the U.S. segment. The company is realigning its business to focus on brands, centralizing functions, and prioritizing investments in innovation.

  • Consolidated net revenue increased by 80% compared to Q3 2020.
  • Launched Cronos Group's first cultured cannabinoid gummy and vape products under Spinach FEELZ™ brand.
  • Spinach® held a double-digit market share in the gummies category in Canada.
  • Strategic realignment is expected to deliver $20 to $25 million in savings across operating expense categories in 2022.

Headline financials

Total Revenue

$20.4M

Previous: $11.4M+79.7%
EPS (adj)

$0.21

Previous: $0.19+10.5%
Capital Expenditures

$2.51M

No prior period
Free Cash Flow

$67.3M

Previous: $47.7M+41.0%
Net Income

$77.9M

Previous: $69M+12.9%
Operating Income

-$56.4M

Previous: -$41.2M-37.0%
Gross Profit

-$730K

Previous: -$1.54M+52.5%
Cash & Equivalents

$843M

Previous: $1.1B-23.3%
Total Assets

$1.54B

Previous: $1.92B-20.0%

Revenue & EPS history

Cronos · Revenue · Quarterly

$20.4M

Q3 2021+79.7%vs Q3 2020
Beat estimate in 7 of 12 quarters(58%)
ActualEstimate

Revenue by segment

Cronos · $20.4M total across 2 segments · Q3 2021

  • Israel and Other
    $18.3M+88.4%
  • Canada
    $2.1M+28.1%

Forward guidance

The overall strategic realignment initiative is expected to deliver $20 to $25 million in initially identified savings across operating expense categories in 2022, primarily driven by savings in sales and marketing, general and administrative, and research and development.

Tailwinds

  • Centralizing functions under common leadership to increase efficient distribution of resources.
  • Improving strategic alignment and eliminate duplicative roles and costs.
  • Evaluating the Company's global supply chain and performing product reviews.
  • Optimizing pricing and distribution in order to reduce fixed expenses and reduce complexity.
  • Implementing an operating expense target to optimize cash deployment for activities such as margin accretive innovation and U.S. adult-use market entry.

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 Q3 2021

Historical avgQ3 2021

-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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