Cronos Group Inc. (NASDAQ:CRON) (TSX:CRON) Q3 2022 net revenue was $20.9 million, a 2.5% increase compared to $20.4 million in Q3 2021. The increase year-over-year was primarily driven by an increase in net revenue in the rest of world segment driven by growth in the Israeli medical market and higher extract sales in the Canadian adult-use market, partially offset by a reduction in revenue in the U.S. segment, lower cannabis flower sales in the Canadian adult-use market driven by an adverse price/mix shift and the impact of the weakening Canadian dollar against the U.S. dollar during the current period.
Q3 2022 Financial Highlights
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Gross profit of $1.2 million in Q3 2022 improved by $1.9 million from Q3 2021.
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Adjusted EBITDA of $(21.7) million in Q3 2022 improved by $25.1 million from Q3 2021.
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Capital expenditures of $1.6 million in Q3 2022 decreased by $0.9 million from Q3 2021.
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Net loss was $(36.9) million compared to net income $77.7 million in Q 2021.
“Market share gains through borderless innovation and cost rationalization were key drivers to this quarter's success,” stated Mike Gorenstein, chairman, president and CEO, Cronos. “Our award-winning Spinach gummy lineup, such as our SOURZ by Spinach Blue-Raspberry Watermelon gummy and new additions to the portfolio including our Spinach FEELZ DEEP DREAMZ THC:CBN gummy, continue to win in the category. Beyond edibles, we achieved new product launches in the vape category powered by rare cannabinoids like CBG and CBN, and in Israel, we continued to grow the PEACE NATURALS brand with medical patients while expanding our leading position in the country. Looking further ahead, we expect pre-roll innovation to drive our recovery in the category in the fourth quarter and 2023.”
“While executing on our innovation pipeline, we also remain on track for the previously announced $20 to $25 million in operating expense savings for 2022,” continued Gorenstein. “Importantly, we will seek additional opportunities to deliver more efficiencies in 2023. I am proud and grateful for the efforts our global team has put in this year and believe our leaner and more nimble organization provides a strong foundation for us to capitalize on the many growth opportunities ahead.”
Appointments
In October, Jeff Jacobson was appointed chief growth officer. Jacobson previously served as the company's SVP, head of growth (North America).
Price Action
Cronos Group shares were trading 5.19% lower at $2.92 per share during Monday’s pre-market session.
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