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Dec 31, 2021
Cronos Q4 2021 Earnings Report
Cronos Group's Q4 2021 financial results indicated positive momentum as they implemented their strategic and operational realignment initiatives.
Key Takeaways
Cronos Group's Q4 2021 net revenue increased by $8.7 million compared to Q4 2020, driven by growth in the adult-use market in Canada and increased sales in the Israeli medical market. Gross profit improved by $16.8 million, and adjusted EBITDA improved by $25.8 million year-over-year.
Net revenue of $25.8 million in Q4 2021, an increase of $8.7 million from Q4 2020.
Gross profit of $1.9 million in Q4 2021, improved by $16.8 million from Q4 2020.
Adjusted EBITDA of $(27.4) million in Q4 2021, improved by $25.8 million from Q4 2020.
Capital expenditures of $0.6 million in Q4 2021, decreased by $10.4 million from Q4 2020.
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
Cronos Group did not provide specific financial guidance in this earnings report. However, they outlined their strategic priorities for 2022, including focusing on adult-use products, elevating brands through rare cannabinoids, optimizing manufacturing, and preparing for entry into the U.S. cannabis market.
Positive Outlook
- Focusing on adult-use products.
- Elevating brands through rare cannabinoids.
- Creating and supporting an efficient manufacturing strategy.
- Investing in rare cannabinoids and innovation.
- Readying Cronos Group for entry into the U.S. cannabis market once federally permitted.
Challenges Ahead
- Uncertainties associated with the COVID-19 pandemic.
- Laws and regulations applicable to our business and the impact thereof.
- The timing of our exit from our facility in Stayner, Ontario and the expected costs and benefits from the wind-down of the Stayner facility.
- Our ability to effectively wind-down the Stayner facility in an organized fashion and acquire raw materials from other suppliers, including GrowCo.
- The potential exercise of one warrant of the Company included as part of the Altria Investment held by Altria, pre-emptive rights and/or top-up rights in connection with the Altria Investment, including proceeds to us that may result therefrom.
Revenue & Expenses
Visualization of income flow from segment revenue to net income