Sunday, June 1, 2025

Latest

Cronos Group To Close Canadian Facility, Reports Q4 Net Loss Of $133.9 Million

Cronos Group (TSX: CRON) appears to be finally taking steps to address its absolute lack of ability to generate any sense of positive income. The firm this morning as part of its fourth quarter financial results announced that it will be closing its Peace Naturals facility in Stayner, Ontario.

The closure is expected to be completed by the end of 2022, with the entire campus to be sold off. The company during the fourth quarter recognized a $119.9 million impairment as a result of the decision, with an additional $4.5 million in charges to come. Going forward, the company intends to use its Cronos GrowCo joint venture and contract growers to supply its needs for the Canadian market.

R&D initiatives, including product development, are expected to to “continue across multiple facilities available to Cronos,” with further details not provided.

In terms of fourth quarter results, the company saw its revenue grow to $25.8 million, up from $20.4 million in the third quarter. Cost of sales came in at $23.9 million, resulting in gross profits of just $1.9 million for the three month period. Net losses for the quarter meanwhile amounted to $133.9 million.

For the full fiscal year, the company saw total net revenues of $74.4 million, along with a cost of sales of $80.0 million, as well as inventory write-downs of $12.0 million, leading to a negative gross profit of $17.5 million for the full year. Operating expenses meanwhile amounted to $543.1 million, lead by impairments to the tune of $383.7 million, as well as general and administrative expenses of $96.5 million.

After positive other income, a result of a $151.4 million gain on revaluation of derivative liabilities, the company posted a net loss of $397.2 million for the full fiscal year.

The company as of December 31 reported a cash position of $887.0 million, as well as short term investments of $117.7 million. Total current assets amounted to $1,079.7 million, while total current liabilities amounted to $54.4 million.

Cronos Group last traded at $4.55 on the TSX.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization unless otherwise mentioned. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Alamos Gold Q1 Earnings: The Inside Scoop

Cerrado Gold Q4 Earnings: The Turnaround is Working

B2GOLD Q1 Earnings: Revenue Up, Production & Cash Flow Decline

Recommended

Canadian Copper: The $172M Combined Strategy PEA

ESGold Begins Concentration Tests Ahead Of First Production

Related News

Cronos Reports First Quarter Revenues of $8.4 Million, Writes Off $8.0 Million In Inventory

Cronos Group (TSX: CRON) (NASDAQ: CRON) reported its first quarter 2020 financial results early this...

Friday, May 8, 2020, 08:34:35 AM

Is 2020 The Year Cannabis Extractors Come Down With The Cronos Virus?

Our sharp-eyed editor Jay pointed out last week that cannabis cultivator Cronos Group Inc. (TSX:...

Sunday, March 15, 2020, 01:23:04 PM

Cronos: Raymond James Remains Bullish Despite Revenue Miss

Cronos Group (TSX: CRON) (NASDAQ: CRON) reported its first-quarter financial results on Friday, May 7th....

Tuesday, May 11, 2021, 05:47:00 PM

CIBC: Cronos Group CEO Switch Up Is “Somewhat Surprising”

This past week, Cronos Group (TSX: CRON) (NASDAQ: CRON) announced that its Board of Directors...

Saturday, September 12, 2020, 01:45:00 PM

SEC Charges Cronos Group With Accounting Fraud

Canadian cannabis company Cronos Group Inc (TSX: CRON) and its former senior executive were charged...

Monday, October 24, 2022, 05:52:17 PM