By Adriano Marchese
Cronos Group swung to a profit in the first quarter thanks to a rise in revenue and a mix of higher prices and lower costs.
The cannabis company on Thursday posted a net income $7.7 million, or 2 cents a share, compared with a loss of $2.5 million, or a penny a share, in the comparable quarter a year ago.
The company credits the profit largely to higher sales volumes and average sales prices, lower direct costs, and production efficiencies.
Adjusted earnings before interest, taxes, depreciation and amortization also swung to a profit, reaching $2.3 million from a loss of $10.7 million.
Net revenue rose to $32.3 million from $25.3 million. The increase was primarily due to higher cannabis flower sales in Israel and other countries that don't carry excise taxes, as well as higher cannabis extract sales in the Canadian market.
Chairman and Chief Executive Mike Gorenstein said 2025 is shaping up to be a transformative year for Cronos as the company executes its strategic priorities to drive revenue growth, expand margins, and maintain disciplined cost management.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
May 08, 2025 08:04 ET (12:04 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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