Cronos Q4 Sales Jump 27% On Higher Cannabis Flower And Extract Sales, Reports Improved Profitability

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On Thursday, Cronos Group Inc CRON reported fourth-quarter sales of $30.3 million, up from $23.92 million, missing the consensus of $34.95 million.

The increase year-over-year was primarily driven by higher cannabis flower and extract sales in the Canadian market and higher cannabis flower sales in Israel and other countries.

Cronos GrowCo contributed $2.1 million of cannabis flower sales in Q4 2024.

The cannabinoid company reported earnings of 11 cents compared to a loss of 19 cents.

Also Next: Cronos CEO Mike Gorenstein Says He’s Optimistic About Trump’s Impact On Cannabis

The company reported a gross profit of $10.8 million, up from $1.91 million, primarily due to higher sales and production cost improvements. Gross profit was positively impacted by $1.8 million in the quarter in connection with the finalization of the purchase accounting for the Cronos GrowCo Transaction, which resulted in a reduction of the fair value of inventory acquired from Cronos GrowCo and the corresponding inventory step-up previously recorded into the cost of sales.

  • Adjusted gross profit of $9.0 million, improved by $7.1 million from Q4 2023.

Adjusted EBITDA loss reached $7.2 million, an improvement of $7.6 million.

“Cronos is well-positioned to capitalize on future opportunities and drive long-term value for our shareholders. As we look ahead to 2025, we remain focused on sustaining this momentum, strengthening our market leadership, and delivering innovative products that resonate with consumers worldwide,” said Mike Gorenstein, chairman, president and CEO of Cronos.

“Our strategic investments, such as Cronos GrowCo, have enhanced our cultivation capabilities, ensuring a consistent supply of high-quality cannabis at scale with an improved gross margin profile, while our R&D breakthroughs have set new industry standards,” Gorenstein added.

Price Action: CRON stock is up 7.87% at $1.9 at the last check Thursday.

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