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Cronos Group Inc. (Nasdaq: CRON) (TSX: CRON) announced its Q3 2022 business results today for the period ending September 30th, 2022. All financial information is provided in U.S. dollars in comparison to the preceding quarter.
 

Q3 Financial Highlights

• Net Revenue: -9.5% to $20.9M
  • U.S.: -66.7% to $0.5M
  • *RoW: -5.6% to $20.4M
• Cost of Sales: +4.8% to $19.8M
• Gross Profit (S): -70.7% to $1.2M
• Gross Margin (%): decreased to 6% from 28%
• Net Loss: increased 81.8% to $(36.9)M
• Adj. **EBITDA: declined by 15.4% to $(21.7)M
• Cash on Hand: -19.8% to $633.33

*RoW- Rest of World; **EBITDA - Earnings Before Interest Taxes Depreciation Amortization
 

Management Commentary

Mike Gorenstein, Chairman, President, and CEO, said:

• “...We remain on track for the previously announced $20 to $25 million in operating expense savings for 2022...[and] we will seek additional opportunities to deliver more efficiencies in 2023...
• I...believe our leaner and more nimble organization provides a strong foundation for us to capitalize on the many growth opportunities ahead.”
   

Q3 Operational Highlights

• According to Hifyre data, Spinach^® products held an approximate 15.3% market share in the edibles category across Canada, which expands to approximately 19.8% within the gummy category alone during Q3 2022. Furthermore, all four SOURZ by Spinach™ gummies ranked in the top 10 for market share in Canada in Q3 2022, and five out of six of our gummy products available during the quarter across the SOURZ by Spinach™ and Spinach FEELZ™ brands were in the top-15 for the same period.
   

Stock Performance

Cronos Group's stock price has been fairly stable over the past 7 months ranging between a high of $3.15 and a low of $2.82 and closed at $3.08 last Friday. That being said, however, the stock is down 10% so far today as a result of the disappointing Q3 results.

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