NASDAQ$CRON

Cronos Group Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Cronos Group's Q4 2021 financial results indicated positive momentum as they implemented their strategic and operational realignment initiatives.

Cronos Group's Q4 2021 net revenue increased by $8.7 million compared to Q4 2020, driven by growth in the adult-use market in Canada and increased sales in the Israeli medical market. Gross profit improved by $16.8 million, and adjusted EBITDA improved by $25.8 million year-over-year.

  • Net revenue of $25.8 million in Q4 2021, an increase of $8.7 million from Q4 2020.
  • Gross profit of $1.9 million in Q4 2021, improved by $16.8 million from Q4 2020.
  • Adjusted EBITDA of $(27.4) million in Q4 2021, improved by $25.8 million from Q4 2020.
  • Capital expenditures of $0.6 million in Q4 2021, decreased by $10.4 million from Q4 2020.

Headline financials

Total Revenue

$25.8M

Previous: $17M+51.3%
EPS (adj)

-$0.36

Previous: -$0.31-16.1%
Capital Expenditures

$493K

Previous: $10.1M-95.1%
Free Cash Flow

-$36.4M

Previous: -$47.9M+23.9%
Net Income

-$134M

Previous: -$112M-19.9%
Operating Income

-$163M

Previous: -$58.4M-178.4%
Gross Profit

$1.94M

Previous: -$14.9M+113.0%
Cash & Equivalents

$887M

Previous: $1.08B-17.7%
Total Assets

$1.4B

Previous: $1.93B-27.4%
Stock-Based Comp

$2.42M

Previous: $2.46M-1.7%

Revenue & EPS history

Cronos · Revenue · Quarterly

$25.8M

Q4 2021+51.3%vs Q4 2020
Beat estimate in 7 of 13 quarters(54%)
ActualEstimate

Revenue by segment

Cronos · $25.8M total across 2 segments · Q4 2021

  • Israel and Other
    $22.7M+67.6%
  • Canada
    $3.11M-11.4%

Forward guidance

Cronos Group did not provide specific financial guidance in this earnings report. However, they outlined their strategic priorities for 2022, including focusing on adult-use products, elevating brands through rare cannabinoids, optimizing manufacturing, and preparing for entry into the U.S. cannabis market.

Tailwinds

  • Focusing on adult-use products.
  • Elevating brands through rare cannabinoids.
  • Creating and supporting an efficient manufacturing strategy.
  • Investing in rare cannabinoids and innovation.
  • Readying Cronos Group for entry into the U.S. cannabis market once federally permitted.

Headwinds

  • Uncertainties associated with the COVID-19 pandemic.
  • Laws and regulations applicable to our business and the impact thereof.
  • The timing of our exit from our facility in Stayner, Ontario and the expected costs and benefits from the wind-down of the Stayner facility.
  • Our ability to effectively wind-down the Stayner facility in an organized fashion and acquire raw materials from other suppliers, including GrowCo.
  • The potential exercise of one warrant of the Company included as part of the Altria Investment held by Altria, pre-emptive rights and/or top-up rights in connection with the Altria Investment, including proceeds to us that may result therefrom.

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 Q4 2021

Historical avgQ4 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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