Loading...
•
Mar 31, 2024
Cronos Q1 2024 Earnings Report
Achieved record quarterly net revenue and demonstrated year-over-year growth in Canada and Israel.
Key Takeaways
Cronos Group reported a 30% year-over-year increase in net revenue, reaching $25.3 million in Q1 2024. This growth was primarily driven by strong performances in Canada and Israel. The company maintains a strong balance sheet with $855 million in cash and cash equivalents.
Net revenue increased by 30% year-over-year to $25.3 million.
Canada experienced a 31% year-over-year revenue growth.
Israel saw a 27% year-over-year revenue growth.
Spinach® brand continues to gain recognition holding a 14.4% market share in Q1 2024 in the edibles category.
Cronos
Cronos
Forward Guidance
The Company reiterates its previously announced operating expense savings target of $5 to $10 million in 2024 primarily driven by savings in general and administrative, and research and development. 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.
Positive Outlook
- Slight moderation in interest rates
- Limited impacts to our operations, facilities and business in Israel due to the conflict involving Israel, Hamas, Iran and other stakeholders in the region (the "Middle East Conflict")
- Limited deterioration in foreign exchange rates, whether due to the Middle East Conflict or other factors
- 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 senior secured credit facility with Cronos GrowCo
Challenges Ahead
- The extent to which the Middle East Conflict may impact the Company’s personnel, business and activities will depend on future developments which remain highly uncertain and cannot be predicted.
- It is possible that the recorded amounts of assets and liabilities related to the Company’s operations in Israel could change materially in the near term.
- The fiscal year 2024 guidance assumes timely receipt of interest and principal payments on the senior secured credit facility with Cronos GrowCo.
- The fiscal year 2024 guidance assumes anticipated interest income of approximately $40 to 50 million in fiscal year 2024.
- The fiscal year 2024 guidance assumes year-over-year gross margin improvement and meeting our target for reducing our operating expenses by $5 to $10 million.