Cronos Group (TSX: CRON) this morning posted its first quarter financial results for 2022. Surprisingly, the company appears to be becoming a bit of a comeback story, with its performance overall improving over that of the fourth quarter.
Revenues for the quarter were down slightly, falling from $25.8 million in the fourth quarter to $25.0 million in the first quarter. Cost of sales however fell significantly, dropping from $23.9 million to $18.1 million. Gross margins as a result improved from 8% to 28% on a quarter over quarter basis, and compares to a -23% gross margin in the year ago period.
Operating expenses for the quarter however still totaled $43.0 million, indicating the company has a long road ahead of it to get to any level of profitability. Expenses were lead by general and administrative expenses of $22.4 million, followed by sales and marketing of $5.0 million and research and development of $4.0 million.
The company overall posted a net loss of $32.7 million for the three month period, versus a loss of $133.6 million for the fourth quarter. Adjusted EBITDA meanwhile came in at negative $18.9 million, versus negative $27.4 million in Q4.
In terms of the balance sheet, Cronos currently has $861.5 million in cash and cash equivalents along with $119.9 million in short term investments. Current assets overall total $1,063.4 million, versus current liabilities of $40.3 million.
The earnings results follows the news back in March that former CEO Michael Gorenstein would be returning to the firms management team in the role of CEO.
Cronos Group last traded at $3.65 on the TSX.
Information for this briefing was found via Sedar and Cronos Group. The author has no securities or affiliations related to these organizations. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
