Cronos Group Inc CRON shares are trading lower by 13.27% to $3.10 Tuesday morning after the company reported worse-than-expected second-quarter sales.
Cronos Group reported quarterly losses of 5 cents per share which met the analyst consensus estimate. The company also reported quarterly sales of $23.10 million which missed the analyst consensus estimate of $27.79 million by 17%. This is a 48% increase over sales of $15.62 million in the same period last year.
Cronos Group says gross profit of $4.1 million in second-quarter 2022 improved by $19.9 million from second-quarter 2021. The improvement year-over-year was primarily driven by the absence of inventory write-downs in the current period, increased revenue in the ROW segment driven mainly by sales of cannabis flower, a favorable mix of cannabis extract products that carry a higher gross profit and gross margin than other product categories, and lower cannabis biomass costs. Partially offset by lower fixed cost absorption due to the timing of wind down activities associated with the exit of the Peace Naturals Campus.
"I am encouraged by the progress we are making to realign our business around our brands to become more efficient in our decision making and agile throughout our supply chain," said Mike Gorenstein, Chairman, President and CEO, Cronos. "Our supply chain transformation in Canada is going very well, with GrowCo achieving profitability in the year-to-date period, and the operational efficiencies we envisioned when we embarked on this initiative are starting to be realized... Read More
According to data from Benzinga Pro, Cronos Group has a 52-week high of $7.33 and a 52-week low of $2.57.
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