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Cronos Group(CRON) - 2023 Q4 - Earnings Call Transcript
2024-02-29 17:44
Financial Data and Key Metrics Changes - The company reported consolidated net revenue of $23.9 million for Q4 2023, a 9% increase from the prior year, with constant currency revenue increasing by 11% to $24.5 million [48] - For the full year 2023, net revenue increased by 1% year-over-year to $87.2 million, with constant currency revenue up 6% to $91.7 million [60] - Gross profit for Q4 was $1.9 million, equating to an 8% gross margin, representing a $0.7 million improvement from the prior year [48] - Operating cash flow improved by $46 million to negative $43 million for the year [60] Business Line Data and Key Metrics Changes - The Spinach brand closed 2023 as the number 1 ranked flower brand in Canada with a 6.9% market share in Q4, up from 4th ranked in 2022 [4] - Spinach edibles accounted for 16.2% of the market's retail sales in Q4, maintaining its position as the market leader in edibles [5] - The Lord Jones brand launched new products, including Chocolate Fusions, which are expected to expand the chocolate segment in the cannabis market [35] Market Data and Key Metrics Changes - In the U.S. market, there is increased momentum to reclassify cannabis, which could significantly improve the operational landscape for cannabis companies [7] - The Australian market reached approximately $200 million in retail sales in 2023, indicating significant growth potential [33] - The German market is expected to experience growth following legislative changes that allow for better marketing of medical cannabis [32][44] Company Strategy and Development Direction - The company aims to capitalize on opportunities in 2024, having achieved $30 million in operating expense savings in 2023, exceeding the target of $20 million to $25 million [2] - The strategy includes focusing on brand innovation and maintaining an asset-light model to enhance operational efficiency [7] - The exit from the Winnipeg facility is anticipated to drive additional cost savings in 2024 [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in recovering from Q4 performance and building upon the success of the first nine months of 2023 [11][20] - The company is well-positioned to take advantage of new market growth opportunities due to its strong balance sheet and operational improvements [10][49] - Management highlighted the resilience of the workforce in Israel despite geopolitical challenges, indicating a commitment to maintaining product quality [3][14] Other Important Information - The company ended the quarter with approximately $862 million in cash and short-term investments, up by about $22 million from Q3 [49] - The company has a 5.9% stake in PharmaCann and a 10% stake in Vitura, contributing to its diversified portfolio [10] - The company anticipates generating approximately $40 million to $50 million in interest income in 2024 [38] Q&A Session Summary Question: What were the main drivers of the lower gross margin in Q4? - The lower gross margin was predominantly driven by increased competitive activity in Israel due to the war and some inventory write-downs [58] Question: What are the growth prospects in Australia and Germany? - Australia is becoming more crowded, but there are barriers to entry that may sustain growth. In Germany, recent legislative changes allow for better marketing of medical cannabis, which is expected to unlock growth [54][66] Question: How does the company view competition in the market? - The company noted competition in Israel driven by the war, but emphasized that their facility was not directly impacted and they continue to produce high-quality products [14]
Cronos Group Reports 2023 Fourth Quarter and Full-Year Results¹
Newsfilter· 2024-02-29 13:05
Ended 2023 with approximately $862 million in cash and short-term investments Commenced sales to Australian partner Launched award-winning Lord Jones® brand in Canada Consolidated net revenue increased 9% in Q4 2023 compared to Q4 2022; on a constant currency basis consolidated net revenue increased 11% in Q4 2023 compared to Q4 2022 Net revenue in Canada increased 20% in Q4 2023 compared to Q4 2022; on a constant currency basis net revenue in Canada increased 21% in Q4 2023 compared to Q4 2022 TORONTO, Feb ...
Cronos Group(CRON) - 2023 Q4 - Annual Results
2024-02-28 16:00
Adjusted EBITDA is reconciled to net loss as follows: To supplement the consolidated financial statements presented in accordance with U.S. GAAP, we have presented constant currency adjusted financial measures for net revenues, gross profit, gross profit margin, operating expenses, net income (loss) and Adjusted EBITDA for 2023, as well as cash and cash equivalents and short-term investment balances as of December 31, 2023 compared to December 31, 2022, which are considered non-GAAP financial measures. We p ...
3 Millionaire-Maker Cannabis Penny Stocks to Buy in February 2024
InvestorPlace· 2024-02-20 18:27
Support for the legalization of cannabis is at an all-time high. In fact, according to a recent Gallup poll, about 70% of all Americans support legalization. Plus, a 2022 Pew Research poll found that only 10% of Americans believe it shouldn’t be legal at all. All of which is a strong catalyst for cannabis penny stocks. Helping, multiple states have legalized its use, with more likely to follow suit. Plus, there’s overwhelming Congressional support for rescheduling. “The case for removing marijuana from Sche ...
What we know about the Lockbit cyber crime gang and its infamous hacks after Operation Cronos takeover
Skynews· 2024-02-20 14:36
An infamous cyber crime gang has been disrupted by the National Crime Agency (NCA) and a coalition of international police agencies. Lockbit and its affiliates have hacked some of the world's largest organisations in recent months, but as of Monday their extortion website displays a message saying it is "under the control of the National Crime Agency of the UK".Five Russian nationals have been charged.But what is Lockbit, what are its criminal tactics and who has fallen victim to it? Here's what we know...W ...
Cronos Group Inc. to Hold 2023 Fourth Quarter and Full-Year Earnings Conference Call on February 29, 2024
Globenewswire· 2024-02-14 21:15
TORONTO, Feb. 14, 2024 (GLOBE NEWSWIRE) -- Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (“Cronos” or the “Company”) will hold its 2023 fourth quarter and full-year earnings conference call on Thursday, February 29, 2024 at 8:30 a.m. ET. Cronos’ senior management team will discuss the Company’s financial results and will be available for questions from the investment community after prepared remarks. To attend the conference call or webcast, participants should register online at https://ir.thecronosgroup.co ...
Cronos Group: Flush With Cash And Trading Below Book Value
Seeking Alpha· 2024-02-11 08:25
Helder Faria/Moment via Getty Images Cronos Group (NASDAQ:CRON) is flush with cash just as market enthusiasm builds around a potential decision by the Drug Enforcement Administration to move cannabis to a significantly less restrictive schedule, a move that would likely catalyze a broad market rally. The roughly $800 million market cap firm held cash, cash equivalents, and short-term investments of $840 million at the end of its fiscal 2023 third quarter. This is just over 100% of its market cap and is ...
3 Cannabis Stocks to Buy for the Next Bull Run: February 2024
InvestorPlace· 2024-02-05 22:52
Newly released documents indicate that the U.S. Food and Drug Administration (FDA) has “determined that cannabis has a legitimate medical use and that it should be moved from Schedule I to Schedule III on the controlled substances list.” With Presidential elections round the corner, there are hopes for federal level legalization of cannabis. Clearly, it’s a good time to buy some of the best cannabis stocks for an impending bull market.Besides these industry factors, cannabis companies have worked towards co ...
Top Canadian Cannabis Stocks to Watch Before February 2024
MarijuanaStocks· 2024-01-30 12:30
2024 Investing Guide: Best Canadian Cannabis Stocks to ConsiderThe Canadian cannabis industry and top marijuana stocks witnessing a dynamic shift. This week, top Canadian cannabis stocks are in the spotlight. The market’s interest is heightened due to evolving regulations and growing global demand. Canadian players are uniquely positioned. They leverage advanced cultivation techniques and expansive distribution networks. These strengths give them a competitive edge in the global cannabis market. The industr ...
Cronos' Spinach® Brand Ends 2023 as the Number One Flower Brand in Canada1
Newsfilter· 2024-01-25 12:00
TORONTO, Jan. 25, 2024 (GLOBE NEWSWIRE) -- Cronos Group Inc. (NASDAQ:CRON) (TSX:CRON) ("Cronos" or the "Company"), an innovative global cannabinoid company, today announced that its brand, Spinach®, closed 2023 as the number one ranked flower brand in Canada with a 6.9%1 market share in the fourth quarter. Spinach® flower products have resonated strongly with consumers, leading to a significant increase in its ranking from the fourth2 best-selling flower brand in 2022, to become the best-selling flower bran ...