Canadian cannabis producer Cronos Group cut its loss in half in 2023, reporting a deficit of $74.5 million (101 million Canadian dollars).
Consolidated net revenue inched higher in the 2023 fiscal year ended Dec. 31, rising to $87.2 million from $86.7 million in the previous year, according to the company’s full-year business results released last week.
In its disclosure, Cronos said the year-over-year increase in sales primarily stemmed from higher cannabis flower and extract revenue in Canada and the initiation of sales in Germany and Australia.
The company said in a news release that the increase was partially offset by lower cannabis flower sales in Israel, which it said was partly driven by pricing pressure as a result of the competitive market and the weakened Canadian dollar and New Israeli Shekel against the U.S. dollar.
The adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of negative $61.6 million for 2023 is an $8.7 million improvement over 2022.
“In 2023, we significantly improved our cash flow from operations driven primarily by operating expense savings, while simultaneously expanding our portfolio of borderless products in Canada and Israel and entering two international markets, Germany and Australia,” CEO Mike Gorenstein said in a statement.
Cronos said it continues to monitor the Israel-Hamas war and any potential impacts the conflict could have on the company’s personnel and business in Israel.
By major product category, Cronos’ sales in 2023 were:
- $62.1 million of cannabis flower, a 2.4% decrease from 2022.
- $24.6 million of cannabis extracts, an increase of 9% over last year.
- $602,000 in “other” revenue, a small decrease compared to 2022.
By geography, Cronos reported sales of:
- $64.7 million in Canada, up 15% compared to 2022.
- $21.1 million in Israel, down 30.1% from last year.
- $1.4 million from other, unidentified countries, a 100% increase from last year.
Cronos said it achieved $30 million in savings in 2023, exceeding its target of $20 million to $25 million.
Cost savings this year will be primarily driven by savings in general and administrative as well as research and development.
Cash and cash equivalents as of Dec. 31, 2023, amounted to $669.3 million.
Shares of Cronos are traded as CRON on the Toronto Stock Exchange and Nasdaq.
