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Mar 31, 2023
Cronos Q1 2023 Earnings Report
Cronos' Q1 2023 results were announced, showing a decrease in revenue but progress in cost savings initiatives.
Key Takeaways
Cronos Group's Q1 2023 net revenue decreased by $4.9 million compared to Q1 2022, primarily due to lower cannabis flower sales in the Rest of World segment and a decline in the U.S. segment. However, the company is on track to achieve the high end of its projected $10 to $20 million in cash operating expense savings for 2023 and is targeting positive cash flow in 2024.
Net revenue of $20.1 million decreased by $4.9 million from Q1 2022.
Gross profit of $2.4 million decreased by $4.5 million from Q1 2022.
Adjusted EBITDA of $(16.8) million improved by $2.1 million from Q1 2022.
Cash and short-term investments totaled $836 million.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Cronos expects net revenue for full-year 2023 to be between $100 to $110 million and is on track to achieve the high-end of the previously identified $10 to $20 million in operating expense savings for 2023. The Company also expects that cash flow will be positive in 2024.
Positive Outlook
- The Company will experience relatively consistent foreign exchange and interest rates.
- The general economic conditions and regulatory environment in the markets in which Cronos participates will not materially change.
- Timely receipt of interest and principal payments on the GrowCo senior secured credit facility.
- Anticipated interest income of approximately $30 million for the last nine months of fiscal year 2023.
- Continued gross margin improvement.
Challenges Ahead
- These statements are forward-looking and actual results may differ materially.
- The Company's ability to achieve the expected cost-savings, efficiencies and other benefits of its Realignment and employee turnover related thereto.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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