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Pharma & Biotech

Cronos Group 3Q results top estimates on Canada retail cannabis growth

Cronos Group Inc (NASDAQ:CRON, TSX:CRON) on Wednesday announced that its third-quarter net revenue rose 22% year-over-year to US$24.8 million, surpassing the analyst consensus estimate of US$19.8 million according to Zacks Equity Research.

The cannabis company’s top-line results were boosted by 40% year-over-year growth in Canada, driven by strength in pre-rolls, flower and edibles.

Cronos also saw its loss per share improve to US$0.01, which also exceeded Wall Street expectations of a US$0.03 per share deficit.

"By most financial metrics, Q3 2023 was one of the best quarters in Cronos history," Cronos Group CEO Mike Gorenstein said in a statement.

"This robust success in Canada was driven primarily by innovations in our Spinach brand, and with the Lord Jones brand now also on the market, we are excited about having a broader portfolio of unique and differentiated products to address consumer needs," he added.

The company ended the quarter with cash and short-term investments of US$840 million as of September 30, 2023.

Shares of Cronos Group climbed 7% to C$2.79 in early Wednesday trading but have fallen 19% year to date.

Contact Sean at sean@proactiveinvestors.com

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