Loading...
•
Sep 30, 2023
Cronos Q3 2023 Earnings Report
Cronos experienced revenue growth and cost reductions, but was impacted by geopolitical unrest in Israel.
Key Takeaways
Cronos Group reported a 22% increase in net revenue to $24.8 million for Q3 2023, driven by growth in the Canadian market. The company also achieved cost reductions and improved gross margin. However, the positive results were overshadowed by the events in Israel, Cronos' second largest operating market.
Net revenue increased by 22% year-over-year to $24.8 million.
Canadian revenue grew by 40% year-over-year.
Spinach® brand maintained its number one market share in the edibles category in Canada.
The company reiterates its operating expense savings target of $20 to $25 million in 2023.
Cronos
Cronos
Forward Guidance
Cronos anticipates that the net change in cash will decline by less than $5 to $10 million in the last three months of fiscal year 2023 and maintains its expectation that the net change in cash will be positive in 2024.
Positive Outlook
- The Company will experience relatively consistent 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.
- 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 Growing Company Inc.
Challenges Ahead
- The extent to which the 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.
- These statements are forward-looking and actual results may differ materially.
- The fiscal year 2023 guidance assumes steady gross margin profile.
- Meeting our target for reducing our operating expenses by $20 to $25 million.