Cronos Group Inc · Q4 2019 earnings

Briefing

Cronos Group's Q4 2019 results were announced and the audit committee review was completed.

Cronos Group's Q4 2019 net revenue increased by $3.0 million compared to Q4 2018, primarily driven by increased product volume in the Rest of World segment and the Redwood acquisition. However, the company experienced a significant decrease in gross profit due to a $24.0 million inventory write-down, and the operating loss increased due to the write-down and increased operating expenses.

• Net revenue increased by $3.0 million from Q4 2018, driven by Rest of World segment and Redwood acquisition.
• Gross profit decreased by $22.3 million from Q4 2018, impacted by a $24.0 million inventory write-down.
• An inventory write-down of $24.0 million was incurred, including charges related to repurposing facilities and cannabis plants.
• Reported operating loss increased by $55.0 million from Q4 2018, driven by the inventory write-down and increased operating expenses.

Headline financials

Revenue & EPS history

The ultimate impact of the COVID-19 outbreak is uncertain and subject to change. Despite Cronos Group’s business continuity efforts, the Company may see an impact on certain parts of its business and operations such as operational capacity or supply chain delays. The Company continues to closely monitor the rapidly evolving COVID-19 situation, and the impact it may have on the Company, its customers and its supply chain.