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Cronos Group Inc. (Nasdaq: CRON) (TSX: CRON) announced its Q1 2022 business results for the period ending March 31st, 2022, on Tuesday. All financial information is provided in U.S. dollars in comparison to the preceding quarter.

Q1 Financial Highlights

• Net Revenue: -2.95% to $25.0M
  • U.S.: -25.0% to $2.3M
  • *RoW: +0.07% to $22.7M
• Gross Profit (S): +188% to $6.9M
• Gross Margin (%): increased to 28% from 11%
• Net Loss: reduced by 756% to $(32.7)M
• Adj. **EBITDA: increased by 30.9% to $(18.9)M
• Cash on Hand: -4% to $861,535
• *RoW- Rest of World
• **EBITDA - Earnings Before Interest Taxes Depreciation Amortization

Q1 Operational Highlights

In the first quarter of 2022, the Company initiated a strategic plan to realign the business around its brands, centralize functions and to evaluate the Company’s supply chain to better position Cronos Group to drive profitable and sustainable growth over time and attributes improved aspects of the Q1 performance to the early stage implementation of that plan.

Management Commentary

Mike Gorenstein, Chairman, President and CEO, said:

• "I am committed to re-instilling a start-up culture with a founder’s mentality across all levels of the organization.
• Our execution in product development, manufacturing, and go-to market strategy resulted in strong growth in both net revenue and gross profit in the first quarter of 2022."

Stock Performance

Cronos Group's stock price declined to a 52-week low yesterday (Monday) but has bounced off the bottom and is already UP 12.7% as of noon on Tuesday but is still DOWN 18.0% since the end of Q1 (March 31), is DOWN 18.6% YTD and remains DOWN 79.5% from its peak in February 2021.