Canada's Cronos Q3 revenue up 75% on cannabis flower demand in Israel, Germany
CRON•Cronos Group's third-quarter net revenue rose 75% year over year, driven by cannabis flower demand in Israel and Germany. Adjusted EBITDA was $17.1 million, above the $10.03 million consensus estimate, and the company repurchased 3.2 million shares.
1. Revenue and profit
Cronos Group's third-quarter net revenue rose 75% year over year, driven by higher cannabis flower sales in Israel and Germany, where sales carry no excise taxes, and a stronger Israeli shekel. Higher average selling prices and sales volumes, especially in international markets, contributed to gross profit of $32.3 million. Net income was $17.8 million, while adjusted EBITDA of $17.1 million beat the $10.03 million analyst consensus.
2. Shares and outlook
The company repurchased 3.2 million shares during the quarter. Cronos expects the integration of CanAdelaar to support growth in the Netherlands; higher operating expenses, mainly sales and marketing and administrative costs, partially offset profit gains.
