Toronto-based Cronos Group (NASDAQ: CRON) (TSX: CRON) ended 2024 well in the black, with $43.9 million in net income for the fourth quarter and $40 million for the full calendar year, the international cannabis company reported this week.
That’s a dramatic turnaround from 2023, when Cronos posted a $70.4 million net loss for the year, including a $45.1 million net loss in the fourth quarter alone.
In a press release, CEO Mike Gorenstein attributed the overall improvement to “innovation, quality and disciplined cost management,” and said the focus now will be on “sustaining momentum” for more international expansion, on top of its current footprint in Canada, Germany, Israel and the United Kingdom.
Cronos reported net revenue of $30.3 million for the fourth quarter, up 27% year-over-year, and $117.6 million for the full 2024 calendar year, a 35% year-over-year increase. The uptick was due primarily to “higher cannabis flower and extract sales in the Canadian market and higher cannabis flower sales in Israel and other countries,” the company said in the release.
Its cultivation wing, Cronos GrowCo, contributed $2.1 million in wholesale revenue during the fourth quarter and $6.4 million for the full year, the company reported, noting that no such sales took place in 2023.
Also last year, Cronos’s Spinach-brand edibles captured 23% of the cannabis edibles market in Canada, the company reported, with five of the top-ten best-selling gummies coming from the Spinach Sourz brand product line.
Cronos’s Lord Jones brand and Peace Naturals also had new product launches, including the launch of Peace Naturals medical marijuana flower in the United Kingdom. Peace Naturals was also one of the top medical marijuana brands in Israel last year, Cronos reported, with 24% market share.
More build-out for the Cronos GrowCo cultivation operations are also underway, with improvements to its expanded grow and processing facility expected to be finished by the second quarter this year and the first harvests likely coming in the second half of 2025.
Once sales from the facility commence, Cronos has the option to purchase up to 70% of the crop, but prior to sales starting, Cronos can purchase as much as 80% of the expected crop.
“The expansion of Cronos GrowCo positions (Cronos) to capitalize on domestic demand and meet international growth opportunities in the global cannabis market,” the company reported.
At the end of 2024, Cronos had $1.1 billion in total assets, including $858.8 million in cash, against $55.3 million in total liabilities.
[[{“value”:”The company said it is now focused on international expansion.
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