NASDAQ$CRON

Cronos Group Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Cronos's Q4 2022 earnings were impacted by lower cannabis flower sales in Canada and the U.S., but improved due to growth in the Israeli medical market and cost-saving initiatives.

Cronos Group's Q4 2022 net revenue decreased by $2.9 million compared to Q4 2021, primarily due to lower cannabis flower sales in Canada and the U.S. Gross profit declined by $2.2 million, while adjusted EBITDA improved by $6.1 million due to cost-saving initiatives.

  • Net revenue decreased by $2.9 million from Q4 2021, driven by lower cannabis flower sales in Canada and the U.S.
  • Gross profit declined by $2.2 million from Q4 2021, impacted by reduced gross profit in the Rest of World segment and increased inventory reserves in the U.S. segment.
  • Adjusted EBITDA improved by $6.1 million from Q4 2021, driven by decreases in operating expenses due to the Company's strategic realignment.
  • Spinach® brand continued to expand market share in the edibles category in Canada, becoming the number one edible brand in January 2023.

Headline financials

Total Revenue

$22.9M

Previous: $25.8M-11.3%
EPS (adj)

-$0.21

Previous: -$0.36+41.7%
Capital Expenditures

$364K

Previous: $493K-26.2%
Free Cash Flow

-$24.7M

Previous: -$36.4M+32.1%
Net Income

-$78.9M

Previous: -$134M+41.1%
Operating Income

-$29.7M

Previous: -$163M+81.7%
Gross Profit

-$234K

Previous: $1.94M-112.0%
Cash & Equivalents

$765M

Previous: $887M-13.8%
Total Assets

$1.21B

Previous: $1.4B-13.2%
Stock-Based Comp

$4.55M

Previous: $2.42M+87.9%

Revenue & EPS history

Cronos · Revenue · Quarterly

$22.9M

Q4 2022-11.3%vs Q4 2021
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

Cronos · $22.9M total across 2 segments · Q4 2022

  • Israel and Other
    $22M-2.9%
  • Canada
    $854K-72.5%

Forward guidance

Cronos anticipates additional savings across operating expense categories in 2023. They are excited about their product and innovation pipelines across categories and they look forward to bringing differentiated products to market that elevate the consumer experience.

Tailwinds

  • Identified an additional $10 to $20 million anticipated saving across operating expense categories in 2023
  • Savings primarily driven by savings in sales and marketing, general and administrative, and research and development.
  • Revamped vape portfolio in 2022, including the addition of 1-gram vapes, new and exciting flavors based off of well performing flower strains and multiple rare cannabinoid SKUs, including CBG and CBN
  • Launched two new strains across various formats: Kiwi Lime Punch and Green Monster Breath.
  • Focused on continuing to bring new and exciting cannabis flower strains powered by our genetic breeding program to the Israeli medical market, such as Cocoa Bomba and Miami Sky.

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 2022

Historical avgQ4 2022

-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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