Marijuana Company Cronos Reduces FY23 Net Loss As It Utilizes Global Expansion

Cronos Group Inc. CRON CRON released its 2023 fourth quarter and full-year business results Thursday with quarterly revenue of $23.9 million, up by $1.9 million from the same quarter of 2022.

"In 2023, we significantly improved our cash flow from operations driven primarily by operating expense savings, while simultaneously expanding our portfolio of borderless products in Canada and Israel and entering two international markets, Germany and Australia," stated Mike Gorenstein, chairman, president and CEO of Cronos."The operating expense savings combined with robust interest income and improved working capital management in the fourth quarter aided in increasing our cash balance by $22 million from the third quarter to a total cash and short-term investments balance of approximately $862 million."

After successfully expanding across Canada and Israel, Cronos entered new markets – Germany and Australia. Last year, the company exited U.S. hemp-derived CBD operations. Cronos noted at the time it had made this decision to improve its cash flow in the near term and position itself to directly enter the U.S. THC market when the necessary changes in U.S. regulatory conditions occur. In 2023, it also launched the Lord Jones brand in the Canadian market.

Q4 Financial Summary 

• Gross profit of $1.9 million in Q4 2023 increased by $700,000 from Q4 2022.
• Adjusted EBITDA was a loss of $(14.8) million in Q4 2023, but improved by $4.2 million from the same quarter in the prior year.
• Net loss of $(45) million, compares to net loss of $(78.9) million in the same quarter of 2022.
• Net loss per share was $(0.12), which compares to net loss per share of $(0.21) in Q4 of 2022.

Full-Year 2023

• Net revenue of $87.2 million increased by $500,000 from full-year 2022.
• Gross profit of $11.9 million decreased by $3.5 million from full-year 2022. 
• Adjusted EBITDA was a loss of $(61.6) million in full-year 2023 but improved by $8.7 million from full-year 2022. 
• Net loss amounted to $(74.6) million, compared to net loss of $(168.73) million in 2022. 
• Net loss per share was $(0.19), which compares to a net loss per share of $(0.45) for the full year 2022. 

Price Action

Cronos shares traded 0.51% lower at $2.25 per share during Thursday's pre-market session. 

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