NASDAQ$CRON

Cronos Group Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Cronos Group's Q4 2023 results reflected a 9% revenue increase and improved cash flow management.

Cronos Group reported a 9% increase in consolidated net revenue for Q4 2023 compared to Q4 2022. The company improved cash flow from operations and expanded its product portfolio in Canada and Israel. They ended the year with approximately $862 million in cash and short-term investments.

  • Consolidated net revenue increased 9% in Q4 2023 compared to Q4 2022.
  • Net revenue in Canada increased 20% in Q4 2023 compared to Q4 2022.
  • Ended 2023 with approximately $862 million in cash and short-term investments.
  • Launched award-winning Lord Jones® brand in Canada.

Headline financials

Total Revenue

$23.9M

Previous: $22.9M+4.5%
EPS (adj)

-$0.05

Previous: -$0.21+76.2%
Capital Expenditures

-$1.75M

Previous: $364K-581.9%
Net Income

-$45M

Previous: -$78.9M+42.9%
Operating Income

-$21.6M

Previous: -$29.7M+27.2%
Gross Profit

$1.91M

Previous: -$234K+917.5%
R&D Expense

$1.45M

No prior period
Stock-Based Comp

$1.93M

Previous: $4.55M-57.6%

Revenue & EPS history

Cronos · Revenue · Quarterly

$23.9M

Q4 2023+4.5%vs Q4 2022
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

Cronos anticipates that the net change in cash, defined as the sum of cash and cash equivalents and short-term investments, will be positive in 2024.

Tailwinds

  • A slight moderation in interest rates
  • Limited impacts to our operations, facilities and business in Israel due to the Israel-Hamas War
  • Limited deterioration in foreign exchange rates due to the Israel-Hamas War
  • Timely receipt of interest and principal payments on the senior secured credit facility with Cronos Growing Company Inc.
  • Year-over-year gross margin improvement

Headwinds

  • The general economic conditions and regulatory environment in the markets in which Cronos participates will not materially change
  • Anticipated interest income of approximately $40 to 50 million in fiscal year 2024
  • Meeting our revised target for reducing our operating expenses by $5 to $10 million.
  • Cronos continues to monitor the Israel-Hamas War 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 Israel-Hamas War may impact the Company’s personnel, business and activities will depend on future developments which remain highly uncertain and cannot be predicted.

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 2023

Historical avgQ4 2023

-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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