Core Points - Cronos Group Inc. is an innovative global cannabinoid company focused on advancing cannabis research, technology, and product development [2] - The company will have its Chairman, President, and CEO, Mike Gorenstein, speaking at the 37th Annual Roth Conference on March 17, 2025 [1] - A live webcast of the conference will be available on the company's investor relations website [1] Company Overview - Cronos is committed to building disruptive intellectual property and enhancing the consumer experience through its diverse international brand portfolio, which includes Spinach, PEACE NATURALS, and Lord Jones [2] - The company aims to establish an iconic brand portfolio in the cannabinoid industry [2]

Group 1 - Cronos (CRON), a Canadian cannabis LP, reported improved Q4 2024 results with increases in revenues, profit, and free cash flow [1] - The company's 50% joint venture with GrowCo is a significant driver of these positive results [1]

Core Insights - Cronos Group Inc reported fourth-quarter sales of $30.3 million, an increase from $23.92 million, but missed the consensus estimate of $34.95 million [1] - The year-over-year sales increase was driven by higher cannabis flower and extract sales in Canada, as well as increased cannabis flower sales in Israel and other countries [1] - The company achieved a gross profit of $10.8 million, significantly up from $1.91 million, aided by higher sales and production cost improvements [2] Financial Performance - Cronos GrowCo contributed $2.1 million in cannabis flower sales during Q4 2024 [1] - Adjusted gross profit reached $9.0 million, an improvement of $7.1 million from Q4 2023 [2] - The adjusted EBITDA loss was $7.2 million, showing an improvement of $7.6 million compared to the previous year [2] Strategic Outlook - The company is optimistic about future opportunities and aims to strengthen market leadership while delivering innovative products [3] - Strategic investments, such as Cronos GrowCo, have improved cultivation capabilities and gross margin profiles [4] - The stock price of CRON increased by 7.87% to $1.9 following the earnings report [4]

Financial Data and Key Metrics Changes - The company reported a 35% year-over-year increase in annual net revenue, reaching $117.6 million [7][26] - Adjusted EBITDA improved by 45% year-over-year, while operating cash flow increased by $61.7 million to a positive $18.8 million [26][33] - The company ended the quarter with cash and cash equivalents of $859 million, down $3 million from Q3 2024 [32] Business Line Data and Key Metrics Changes - Consolidated net revenue for Q4 2024 was $30.3 million, a 27% increase from the prior year, with net revenue excluding GrowCo at $28.2 million, representing an 18% growth year-over-year [27][28] - Gross profit for Q4 was $10.8 million, equating to a 36% gross margin, with an adjusted gross profit of $9 million and a 30% adjusted gross margin [28][29] - The PEACE NATURALS brand ended the year as the number one flower brand in Israel with a 24% market share [22] Market Data and Key Metrics Changes - Spinach ended the year as the number one cannabis brand in Canada by market share, with significant rankings in edibles and flower categories [14][17] - In the gummy category, SOURZ products captured 23% market share in Q4, with five of the top 10 best-selling edibles in Canada [15] - The company is seeing promising growth in the UK market with the PEACE NATURALS brand [24] Company Strategy and Development Direction - The company is focused on expanding its cultivation and production capabilities through investments in GrowCo to ensure a consistent supply of high-quality cannabis [8][10] - The strategic approach includes developing a portfolio of best-selling disruptive branded products for new markets as cannabis regulations open globally [19] - The company aims to maintain its leadership position in the global cannabis industry through innovation and operational excellence [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on future growth opportunities and enhance its position in the global cannabis market [35] - The company anticipates that growth in flower sales will not continue until the second half of 2025 when additional supply from the GrowCo expansion becomes available [18] - Management highlighted the importance of disciplined operating expenses and the positive trajectory of the business [34] Other Important Information - The company achieved significant advancements in cannabis genetics, improving cannabinoid yield and meeting consumer preferences [12] - The company is preparing for the next phase of growth by strategically allocating existing supply across its brands [18] Q&A Session Summary - No questions were raised during the Q&A session, concluding the conference call [38]

分组1 - Cronos Group reported a quarterly loss of $0.01 per share, consistent with the Zacks Consensus Estimate, compared to a loss of $0.05 per share a year ago [1] - The company posted revenues of $30.3 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 13.43%, but showing an increase from $23.92 million year-over-year [2] - Cronos shares have declined approximately 8.4% since the beginning of the year, while the S&P 500 has gained 1.3% [3] 分组2 - The earnings outlook for Cronos is mixed, with the current consensus EPS estimate for the coming quarter at breakeven on $35.6 million in revenues, and $0.03 on $151.5 million in revenues for the current fiscal year [7] - The Medical - Drugs industry, to which Cronos belongs, is currently in the top 50% of Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - In 2024, net revenue increased by 35% to $117,615,000 compared to $87,241,000 in 2023[342]. - Gross profit for 2024 was $25,198,000, representing a 112% increase from $11,909,000 in 2023[343]. - The company reported an operating loss of $76,529,000 in 2024, an improvement from a loss of $84,800,000 in 2023[342]. - For 2024, consolidated net revenue was $117.6 million, an increase of $30.4 million from 2023, driven by higher cannabis flower and extract sales in Canada and other countries[344]. - Consolidated cost of sales for 2024 was $91.7 million, reflecting a $17.2 million increase from 2023, primarily due to inventory step-up from the Cronos GrowCo Transaction[345]. - Net income for 2024 was $40.0 million, a substantial improvement from a net loss of $74.6 million in 2023[356]. - Adjusted EBITDA for 2024 was $(34,942,000), an improvement from $(61,564,000) in 2023[373]. - The company reported a foreign currency transaction gain of $57.9 million in 2024, a significant increase from a loss of $7.3 million in 2023[363]. - The company recognized a loss on held-for-sale assets of $11.2 million in 2024, reflecting a strategic shift in asset marketing[364]. - For the year ended December 31, 2024, the company reported a net income of $40,022,000, compared to a net loss of $70,439,000 in 2023[372]. Operational Changes - The company exited its U.S. hemp-derived cannabinoid product operations in Q2 2023, marking a strategic shift that significantly impacted financial results[323]. - Cronos launched new products in 2024, including Spinach Grindz™ and SOURZ by Spinach gummies, expanding its offerings in the edible and vape categories[328]. - The Cronos GrowCo transaction, completed in July 2024, allows the company to consolidate operations and expand its cannabis supply capabilities[322]. - Cronos expects to complete the expansion of the Cronos GrowCo facility by Q2 2025, with the first harvests anticipated in the second half of 2025[334]. - The company plans to wind down the Cronos Fermentation facility and list it for sale, indicating a strategic shift in operations[404]. - The company has transitioned to a single operating segment following the exit of its U.S. operations in Q2 2023, with all prior segment disclosures reclassified accordingly[510]. Investment and Assets - Cash and cash equivalents increased by 28% to $858.8 million as of December 31, 2024, compared to $669.3 million in 2023, with a constant currency increase of 30% to $869.8 million[385]. - The company reported total assets of $1,166,312,000 as of December 31, 2024, an increase from $1,140,266,000 in 2023, representing a growth of approximately 2.3%[453]. - The total liabilities rose to $55,330,000 in 2024, compared to $44,142,000 in 2023, indicating an increase of approximately 25.3%[453]. - Shareholders' equity attributable to Cronos Group decreased to $1,064,063,000 in 2024 from $1,099,571,000 in 2023, a decline of about 3.2%[453]. - The company acquired majority control of Cronos Growing Company Inc. on July 1, 2024, which was classified as a business combination under ASC 805[427]. - The valuation of the net assets of Cronos Growing Company involved significant assumptions including real estate appraisals and forecasted revenues, which required substantial auditor judgment[428]. Research and Development - Research and development expenses decreased to $4.2 million in 2024, down $1.6 million from 2023, due to lower collaboration costs[350]. - The Company has a research and development center in Canada focusing on cannabinoids, with ongoing initiatives around rare cannabinoids and a collaboration with Ginkgo for cultured cannabinoids[494]. Market Expansion - In 2024, Cronos expanded its international footprint by entering the UK market with the PEACE NATURALS brand[331]. - The company plans to continue focusing on market expansion and new product development as part of its strategic initiatives[375]. Financial Adjustments - Operating expenses totaled $101.7 million for 2024, a 5% increase from 2023, with significant impairment loss on long-lived assets rising to $16.4 million[348][355]. - The impairment loss on long-lived assets for 2024 included $14,258,000 related to the write-down of Ginkgo Exclusive Licenses[373]. - The company incurred transaction costs of $701,000 related to the Cronos GrowCo Transaction in 2024[373]. - The company recognized uncertain tax positions only if they are more likely than not to be sustained upon examination by tax authorities[508]. Currency and Interest - Interest income for 2024 was $52.0 million, up $0.8 million from 2023, mainly due to higher interest rates[357]. - A 10% change in the interest rate in effect for 2024 would affect interest income by approximately $5.2 million[412]. - The company experienced a foreign currency loss of $(86.3) million for the year ended December 31, 2024, compared to a gain of $21.5 million in 2023[414]. - A 10% change in the exchange rates for the Canadian dollar would affect the carrying amount of net assets by approximately $40.1 million as of December 31, 2024[414].

Exhibit 99.1 Cronos Group Reports 2024 Fourth Quarter and Full-Year Results Net revenue in Q4 2024 increased by 27% year-over-year to $30.3 million; Net revenue in FY 2024 increased by 35% year-over-year to $117.6 million Spinach Ends 2024 as the Number One Cannabis Brand in Canada ® 1 "From Spinach becoming the number one cannabis brand in Canada and PEACE NATURALS achieving a number one position in Israel, to our groundbreaking advancements in cannabis genetics, to international expansion, Cronos is well- ...

Core Insights - Cronos Group Inc. reported a 27% year-over-year increase in net revenue for Q4 2024, reaching $30.3 million, and a 35% increase for FY 2024, totaling $117.6 million [1][11] - The company achieved significant market leadership, with Spinach becoming the number one cannabis brand in Canada and PEACE NATURALS leading in Israel [1][3] - Cronos Group maintains a strong balance sheet with $859 million in cash and cash equivalents [1][11] Financial Performance - Q4 2024 net revenue increased by $6.4 million from Q4 2023, driven by higher cannabis flower and extract sales in Canada and Israel [11] - Gross profit for Q4 2024 was $10.8 million, up $8.9 million from the previous year, attributed to improved sales and production cost efficiencies [11][17] - Full-year 2024 gross profit reached $25.2 million, an increase of $13.3 million from 2023, primarily due to higher sales and cost improvements [17][41] Brand and Product Development - The SOURZ by Spinach brand captured a 23% market share in the Canadian edible market in Q4 2024, with several innovative product launches [13] - Spinach maintained its position as the number one flower brand in Canada with a 5.7% market share [14] - PEACE NATURALS was the number one flower brand in Israel with a 24% market share in Q4 2024 [20] Strategic Initiatives - Cronos Group made strategic investments in Cronos GrowCo to enhance cultivation capabilities, consolidating its results from July 1, 2024 [4][11] - The company exited its U.S. hemp-derived CBD operations in 2023, marking a strategic shift in its business focus [5] - Cronos expanded its operations into the UK and continued sales in Germany, leveraging its proprietary genetics [21][22] Operational Efficiency - The company achieved $8.7 million in operating expense savings in 2024, exceeding its target of $5 to $10 million [26][27] - Investments in automation and process improvements at the Peace Naturals Campus are aimed at driving cost efficiency [25]

Core Viewpoint - Cronos Group Inc. will hold its 2024 fourth-quarter and full-year earnings conference call on February 27, 2025, at 8:30 a.m. ET, where senior management will discuss financial results and answer questions from the investment community [1] Group 1: Conference Call Details - Participants can register for the conference call or webcast online and are encouraged to dial in fifteen minutes early to avoid delays [2] - The webcast will be archived for replay on the Company's website [2] Group 2: Company Overview - Cronos is a global cannabinoid company focused on advancing cannabis research, technology, and product development [3] - The Company aims to build a disruptive intellectual property and an iconic brand portfolio, which includes brands like Spinach, PEACE NATURALS, and Lord Jones [3]

Core Viewpoint - Cronos Group's stock experienced a significant increase of 9.4% following the announcement of Q3 earnings that exceeded Wall Street expectations, raising questions about the sustainability of this performance and potential exit strategies for investors [1][4]. Group 1: Q3 Earnings Performance - Cronos reported Q3 sales of approximately $34.3 million, surpassing analyst expectations of $24.8 million, and achieved a profit of $0.02 per share, contrary to predictions of a loss of $0.01 per share [1][2]. - Year-over-year sales growth was 38%, with the "Spinach" brand becoming the top recreational cannabis brand in Canada, and the "Peace Naturals" brand leading in the medical marijuana market in Israel [2]. Group 2: Future Outlook and Guidance - The company aims to reduce operating costs by $5 million to $10 million this year, focusing on savings in general and administrative expenses, sales and marketing, and research and development [3]. - Despite the positive Q3 results, Cronos remains unprofitable for the first three quarters of the year, and analysts project continued net losses through 2033, indicating skepticism about the company's ability to achieve consistent profitability [3][4].