Why investors were thrilled with Cronos Group today

There was a pleasant buzz in the market Cronos Group (CRON 4.50%) on the penultimate day of the trading week. The Canadian marijuana company released its second-quarter results, and investors found them encouraging enough to lift Cronos shares almost 5%. By comparison, the benchmark S&P500 The indicator increased by 2.3%.

Lighting up in Canada

In the second quarter, Cronos — which reports in U.S. dollars — posted nearly $27.8 million in revenue, up nearly 50% from the $19 million it earned in the same period in 2023. On a more somber note, its net loss widened 55% to nearly $8.8 million. That net loss came to $0.02 per share.

Analysts following Cronos had been predicting, on average, that the marijuana company would post revenue of just over $26 million. However, experts expected net income to be zero.

In its earnings report, Cronos attributed the significant improvement in results to more robust sales of cannabis flower and extracts in its domestic Canadian market. It also said its international sales, to countries such as Germany and Israel, were higher.

Across-the-board spending cuts planned

Cronos provided somewhat unusual guidance for the full year of 2024. It reiterated its goal of reducing annual expenses by $5 million to $10 million, which it said would come from reductions in general and administrative, sales/marketing, and research and development expenses. It added that “organizational and cost-saving initiatives are designed to position the Company to achieve profitable and sustainable growth over time.”

Cronos did not provide revenue or profitability forecasts for this year.