Cronos brought in its highest quarterly net revenue yet at $27.8 million in the second quarter of 2024 but still reported a net loss of $8.8 million (reported in US dollars).
Cronos Group Inc. saw a 46% ($8.7 million) year-over-year increase in net revenue, which the company attributes to increased domestic and international sales.
The company’s gross profits also increased, up $3.2 million in the three months ending June 30, 2024, from the same reporting period in 2023.
Cronos’ net loss of $8.8 million is up from a $2.4 million loss in the previous quarter, and up from a $5.7 million net loss in Q2 2023.
Net revenue for the three months ended June 30, 2024, was $38.7 million, with $10.9 million in excise taxes. Cost of sales was another $21 million, while sales at marketing were $4.3 million out of $21.9 million in total operating expenses.
Net revenue from cannabis flower sales was $20.7 million in Q2 2024, while net revenue from cannabis extracts was $7 million, a 47% and 43% year-over-year increase respectively. The majority of these sales were in Canada ($19.8 million), while $6.9 million were to Israel and $1 million to Germany and the United Kingdom (up 46%, 27%, and no material change compared to the same quarter in 2023, respectively.
Israel is in the process of considering adding levies to cannabis imported from Canada. Cronos also operates Cronos Israel, which has a nursery, cultivation, and distribution licenses. It is in the process of constructing a custom-built greenhouse and manufacturing facility for cannabis.
“Cronos achieved its highest quarterly net revenue on record in Q2 2024 at $27.8 million, up 46% year-over-year,” said Mike Gorenstein, Chairman, President and CEO of Cronos. “The top line was propelled by 46% growth year-over-year in Canada, 27% growth year-over-year in Israel, growth in Germany and the initiation of sales in the United Kingdom. These results reflect the hard work and dedication of our entire team, reinforcing our confidence in sustained growth and success,”
Cronos also recently announced a $51 million (CAD$70 million) expansion of Cronos Growing Company Inc. (Cronos GrowCo) to address increased international demand for its cannabis. Cronos GrowCo reported preliminary unaudited net revenue to third parties, excluding sales to the Company, of approximately $2.7 million in the second quarter of 2024.
In 2023, Cronos purchased approximately $21 million of biomass from GrowCo, and GrowCo sold approximately $20 million to third parties.
Cronos sells its cannabis under the brands Spinach, Lord Jones, and Peace Naturals.
