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Dec 31, 2022
Cronos Q4 2022 Earnings Report
Cronos's Q4 2022 earnings were impacted by lower cannabis flower sales in Canada and the U.S., but improved due to growth in the Israeli medical market and cost-saving initiatives.
Key Takeaways
Cronos Group's Q4 2022 net revenue decreased by $2.9 million compared to Q4 2021, primarily due to lower cannabis flower sales in Canada and the U.S. Gross profit declined by $2.2 million, while adjusted EBITDA improved by $6.1 million due to cost-saving initiatives.
Net revenue decreased by $2.9 million from Q4 2021, driven by lower cannabis flower sales in Canada and the U.S.
Gross profit declined by $2.2 million from Q4 2021, impacted by reduced gross profit in the Rest of World segment and increased inventory reserves in the U.S. segment.
Adjusted EBITDA improved by $6.1 million from Q4 2021, driven by decreases in operating expenses due to the Company's strategic realignment.
Spinach® brand continued to expand market share in the edibles category in Canada, becoming the number one edible brand in January 2023.
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 anticipates additional savings across operating expense categories in 2023. They are excited about their product and innovation pipelines across categories and they look forward to bringing differentiated products to market that elevate the consumer experience.
Positive Outlook
- Identified an additional $10 to $20 million anticipated saving across operating expense categories in 2023
- Savings primarily driven by savings in sales and marketing, general and administrative, and research and development.
- Revamped vape portfolio in 2022, including the addition of 1-gram vapes, new and exciting flavors based off of well performing flower strains and multiple rare cannabinoid SKUs, including CBG and CBN
- Launched two new strains across various formats: Kiwi Lime Punch and Green Monster Breath.
- Focused on continuing to bring new and exciting cannabis flower strains powered by our genetic breeding program to the Israeli medical market, such as Cocoa Bomba and Miami Sky.
Revenue & Expenses
Visualization of income flow from segment revenue to net income