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Jun 30, 2021
Cronos Q2 2021 Earnings Report
Cronos Group continued to bring high-quality and insight-driven products to market, made a strategic investment in PharmaCann, and launched new products under the Spinach™ brand.
Key Takeaways
Cronos Group's Q2 2021 net revenue increased by $5.7 million year-over-year, driven by growth in the Canadian adult-use cannabis market and increased sales in the Israeli medical cannabis market. The company also made a strategic investment in PharmaCann, a leading U.S. cannabis company.
Net revenue of $15.6 million increased by $5.7 million from Q2 2020, driven by growth in the Canadian adult-use cannabis market and increased sales in the Israeli medical cannabis market.
Gross loss of $15.8 million increased by $12.9 million from Q2 2020, primarily driven by an increase in inventory write-downs in the ROW segment.
Adjusted EBITDA loss of $49.8 million increased by $22.8 million from Q2 2020, driven by an increase in gross loss, sales and marketing costs, and R&D costs.
Strategic investment in PharmaCann, a leading vertically integrated U.S. cannabis company.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
This press release contains forward-looking statements based on current expectations, estimates, projections, assumptions, and beliefs. These statements are subject to inherent risks and uncertainties that may cause actual results to differ materially.
Positive Outlook
- Cronos Group is committed to building disruptive intellectual property by advancing cannabis research, technology and product development.
- Cronos Group is building an iconic brand portfolio.
- The amended agreement with Ginkgo Bioworks will enable the companies to accelerate the commercialization of cultured cannabinoids at scale.
- Cronos Fermentation commenced commercial-scale production of cannabigerol (“CBG”) in June 2021.
- Cronos Group expects that the final productivity target for CBG will be achieved prior to September 2021.
Challenges Ahead
- The COVID-19 pandemic may disrupt operations and negatively impact demand.
- Cost savings and synergies from the Altria Investment may not be fully realized or may take longer to realize than expected.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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