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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.
Cronos
Cronos
Cronos Revenue by Segment
Cronos Revenue by Geographic Location
Revenue by Segment
United States Revenue
CapyFin.comRest of World Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comRest of World Revenue
CapyFin.com 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.
- Planned dispositions, including the sale of OGBC, may not be completed or the anticipated sales price may not be obtained.
- Legal or regulatory obstacles could prevent Cronos Group from being able to exercise the PharmaCann Option.
- There is uncertainty regarding the application of United States (“U.S.”) state and federal law to U.S. hemp (including CBD) products and the scope of any regulations.