Latest news with #CronosGroupInc
San Francisco Chronicle
08-05-2025
- Business
- San Francisco Chronicle
Cronos: Q1 Earnings Snapshot
STAYNER, Ontario (AP) — STAYNER, Ontario (AP) — Cronos Group Inc. (CRON) on Thursday reported profit of $6.1 million in its first quarter. The Stayner, Ontario-based company said it had profit of 2 cents per share. The cannabis company posted revenue of $32.3 million in the period. _____
Yahoo
02-05-2025
- Business
- Yahoo
Cronos Group Inc. (CRON): Among the Best Tobacco and Cigarette Stocks to Buy Now
We recently compiled a list of the 10 Best Tobacco and Cigarette Stocks to Buy Now. In this article, we are going to take a look at where Cronos Group Inc. (NASDAQ:CRON) stands against the other tobacco and cigarette stocks. Cigarette and tobacco stocks are companies that produce and sell cigars, snuff, chewing tobacco, cigarettes, e-cigarettes, and all other tobacco products. The tobacco industry has long been a huge winner for investors. Tobacco companies were among the top performers during the 20th century because of their reputation for providing investors with substantial dividend yields as well as their addictive, extremely profitable, and recession-proof product. However, tobacco firms now confront a different set of challenges. Globally, smoking rates have been progressively declining, particularly in the United States, as a result of growing legislation and health concerns. The industry has attempted to shift to next-generation products as a result. Some people believe that e-cigarettes, vaporizers, and chewable nicotine pouches are healthier options since they avoid some of the negative aspects of smoking cigarettes, such as unpleasant odors. Some companies are expanding beyond tobacco, working with cannabis businesses to capitalize on the potential development in a market that shares numerous similarities with tobacco. There are other hazards associated with tobacco stocks, such as heightened regulation and a decline in smoking rates. According to the Centers for Disease Control and Prevention, the number of tobacco farms in the United States decreased from 93,530 in 1997 to roughly 3,000 in 2022. Nonetheless, the USA was the world's fifth-largest producer of tobacco in 2021, harvesting 431.6 million pounds in 2022, compared to 1.74 billion pounds in 1997. Seventy-seven percent of U.S. production came from North Carolina or Kentucky. Price reductions accounted for $5.7 billion (72%) of the $8.6 billion tobacco businesses spent on advertising in 2022, which included $572.7 million for smokeless tobacco and $8.01 billion for cigarettes. Marketing costs for e-cigarettes came to $859.4 million in 2021. Sales of cigarette packs fell from 12.5 billion to 9.1 billion packs between 2015 and 2021, a 27% decrease. In 2024, the average cigarette tax in each state was $1.93, while the federal tax was $1.01. Despite the industry's weak revenue and profit development, investors continue to be drawn to these stocks due to their consistent dividends, profitability, and solid profit margins. Investors believe that stronger growth will eventually be catalyzed by next-generation products. However, on April 2, 2025, the U.S. Supreme Court upheld the FDA's decision to deny approval for flavored e-cigarettes in a major decision. According to Justice Samuel Alito, vape producers were given 'adequate notice' of the FDA's review criteria. In this case, businesses like Vapetasia and Triton Distribution applied for certification for products such as 'Mother's Milk and Cookies' and 'Killer Kustard Blueberry.' The FDA has been regulating vaping products since 2016, claiming that flavored vapes represent a health concern and may encourage young people to use tobacco. More than 2.1 million youths in the US reported using e-cigarettes in 2023, with 10% of high school students vaping. The FDA has rejected thousands of flavored products and has only approved tobacco and menthol flavors. One specific issue, marketing plan consideration, was returned to lower courts after the Supreme Court reversed the 5th Circuit's prior criticism of the FDA's changing criteria. Companies that promote unapproved products risk 'civil and criminal penalties,' the FDA warned. For this article, we sifted through the online rankings to form an initial list of the 15 Tobacco and Cigarette Stocks. We have also included e-cigarette and cannabis companies. From the resultant dataset, we chose 10 stocks with the highest number of hedge fund investors, using Insider Monkey's database of 1009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock's market cap as of April 25, 2025, as a tie-breaker in case two or more stocks have the same number of hedge funds invested. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here). A close up of cannabis plants growing in an outdoor facility, symbolizing the product of the cannabinoid company. Number of Hedge Fund Holders: 16 Market Cap as of April 25: $690.08 million Cronos Group Inc. (NASDAQ:CRON), with its headquarters located in Toronto, Canada, grows and markets cannabis for both medical and recreational purposes under the Peace Naturals medical brand and the Cove and Spinach recreational brands. The firm's exports of medical cannabis are mostly to Israel, yet it operates primarily in Canada. The company has the option to purchase a fully diluted 5.9% stake in the U.S. multistate operator PharmaCann upon the easing of federal prohibition. It is ranked eighth on our list of the Best Tobacco Stocks. Cronos Group Inc. (NASDAQ:CRON) produced impressive results in 2024, growing its annual revenue by 35% year over year due to excellent performance in Israel, Canada, and other international markets. The company's increased operational efficiency was evident in its adjusted gross margins, which nearly doubled and improved by 12 percentage points for the entire year 2024. Its Spinach brand became Canada's biggest cannabis brand in terms of market share, with a focus on edibles, flower, and vapes. Furthermore, the company has $859 million in cash and cash equivalents, which puts it in a solid financial position for future growth and expansion. As a result of successful international development initiatives, especially in Germany and the UK, adjusted EBITDA increased by 45% year over year, showing encouraging growth prospects. Significant R&D progress was also made by Cronos Group Inc. (NASDAQ:CRON), as breeding initiatives and developments in cannabis genetics produced new strains and increased yields of cannabinoids. Overall, CRON ranks 8th on our list of the 10 Best Tobacco and Cigarette Stocks to Buy Now. While we acknowledge the potential of tobacco and cigarette companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CRON but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
29-03-2025
- Business
- Yahoo
Is Cronos Group Inc. (NASDAQ:CRON) the Best Cannabis Stock to Buy According to Billionaires?
We recently published a list of 12 Best Cannabis Stock to Buy According to Billionaires. In this article, we are going to take a look at where Cronos Group Inc. (NASDAQ:CRON) stands against other best marijuana stocks to invest in according to billionaires. 2025 didn't start off very well for the American cannabis sector. The recent failure of the adult-use ballot initiative in Florida, the lack of prioritization of federal reforms, and pricing pressure by the black market have contributed significantly to cannabis equity values reaching near record lows. MSOS, the first actively managed US-listed ETF with dedicated cannabis exposure focusing exclusively on US companies, has fallen by just over 36% since the beginning of the year, against a decline of 1.72% by the general market. READ ALSO: 10 Best Alcohol Stocks to Buy According to Billionaires To make matters worse, the biggest multi-state cannabis operators have as much as $6 billion in debt maturing next year, according to Whitney Economics. Moreover, due to federal illegalization, these companies cannot turn to the US bankruptcy court to keep their creditors at bay while renegotiating their debt. As a result, these businesses will be forced to refinance their debt at higher interest rates and onerous contractual covenants, which will be extremely difficult to manage given the declining profitability of the sector. A recent survey by Whitney Economics revealed that only 27.3% of cannabis operators nationwide are profitable, compared to 42% in 2022. Also, despite the stringent crackdowns, the cannabis black market continues to be a constant thorn in the side of licensed operators. The market remains flooded with illegal weed, and according to cannabis market tracker BDSA, the US witnessed about $44 billion in illicit sales last year compared to around $31 billion in regulated, legal sales. The black market, combined with an oversaturation of legal operators, has led to a massive decline in prices and, hence reduced margins. The US Cannabis Spot Index, which tracks wholesale prices in 22 states, sits at $991 per pound after reaching a record low in early January of $888. This is significantly down from its peak of $2,133 in September 2015, during the early period of licensed sales in some states. Given the tough conditions at home, a growing number of cannabis operators are now looking to capitalize on the growing opportunities abroad. As you will notice below, several cannabis stocks in our list managed to increase their sales in the last quarter also due to their expanding international footprint and revenues. With legalization gaining traction worldwide, several industry veterans are now exporting cannabis internationally or straight up establishing growing facilities in their target markets. A great example is how Canada's volume of cannabis exports to Germany doubled from 16,895 kilograms (roughly 37,247 pounds) in 2023 to 33,155 kilograms last year, according to Germany's Federal Institute for Drugs and Medical Devices. As of the writing of this article, 24 states have legalized recreational weed in America, in addition to the District of Columbia. However, possessing or selling marijuana remains a crime under federal law, punishable by prison time and fines. With that said, here are the Best Marijuana Stocks According to Billionaires. A close up of cannabis plants growing in an outdoor facility, symbolizing the product of the cannabinoid company. To collect data for this article, we scanned Insider Monkey's database of billionaires' stock holdings and picked the top 10 companies operating in the cannabis sector with the highest number of billionaire investors in Q4 of 2024. When two or more companies had the same number of billionaires backing them, we ranked them by the revenue of their last financial year. Following are the Best Marijuana Stocks to Invest in According to Billionaires. At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Billionaire Holders: 6 Cronos Group Inc. (NASDAQ:CRON) is a Canada-based cannabinoid company engaged in the cultivation, manufacture, and marketing of cannabis and cannabis-derived products for both medical and adult-use markets. A noteworthy aspect of the company is its close association with Altria Group, a giant in the tobacco industry that maintains a 41% stake in Cronos that it acquired for $1.8 billion in 2019. Cronos Group Inc. (NASDAQ:CRON) delivered an EPS of $0.11, beating estimates by $0.12. The company's revenue of $30.27 million, though up 26.6% YoY, fell below estimates by $4.56 million. What's more is that most of this growth came from the company's increasing market share in Canada, reflecting its sustainable nature. Cronos also reported a net profit of $41.08 million for the full year of 2024, its first annual profit since 2021. Another notable achievement is that the company's Spinach brand ended the year 2024 as the number one cannabis brand in Canada by market share, solidifying its leadership position. Moreover, its PEACE NATURALS brand ended 2024 as the number one flower brand in Israel, with a 24% market share. Cronos also maintains an industry-leading balance sheet with cash and cash equivalents of $859 million, significantly exceeding its market cap and reinforcing its ability to invest in growth, innovation, and global expansion. Cronos Group Inc. (NASDAQ:CRON) is making continued progress on the expansion of its GrowCo facility, expecting to finish construction of the expanded cultivation and processing facilities in the second quarter of this year, with first harvests and sales from the area commencing in the second half of 2025. The strategic move positions the cannabis company to capitalize on Canadian domestic demand and meet international growth opportunities in 2025. Overall, CRON ranks 3rd on our list of the best cannabis stocks to buy according to billionaires. While we acknowledge the potential for CRON to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRON but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds' investor letters by entering your email address below. Sign in to access your portfolio
Associated Press
10-03-2025
- Business
- Associated Press
Cronos Group Inc. to Speak at the 37th Annual Roth Conference
TORONTO, March 10, 2025 (GLOBE NEWSWIRE) -- Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) ('Cronos' or the 'Company'), an innovative global cannabinoid company, today announced that Mike Gorenstein, Chairman, President and CEO, will speak at the 37th Annual Roth Conference on Monday, March 17, 2025, at 1:00 PM PT. A live webcast will be available on the Investors section of the Company's website at About Cronos Group Inc. Cronos is an innovative global cannabinoid company committed to building disruptive intellectual property by advancing cannabis research, technology and product development. With a passion to responsibly elevate the consumer experience, Cronos is building an iconic brand portfolio. Cronos' diverse international brand portfolio includes Spinach®, PEACE NATURALS® and Lord Jones®. For more information about Cronos and its brands, please visit: Forward-looking Statements This press release may contain information that may constitute 'forward-looking information' or 'forward-looking statements' within the meaning of applicable Canadian and U.S. securities laws and court decisions (collectively, 'Forward-looking Statements'). All information contained herein that is not clearly historical in nature may constitute Forward-looking Statements. In some cases, Forward-looking Statements can be identified by the use of forward-looking terminology such as 'may', 'will', 'expect', 'plan', 'anticipate', 'intend', 'potential', 'estimate', 'believe' or the negative of these terms, or other similar expressions intended to identify Forward-looking Statements. Some of the Forward-looking Statements contained in this press release include statements about Mr. Gorenstein's intention to speak at the 37th Annual Roth Conference and Cronos' intention to build an international iconic brand portfolio and develop disruptive intellectual property by advancing cannabis research, technology and product development. Forward-looking Statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive risks, financial results, performance or achievements expressed or implied by those Forward-looking Statements and the Forward-looking Statements are not guarantees of future performance. A discussion of some of the material risks applicable to the Company can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, which has been filed on SEDAR+ and EDGAR and can be accessed at and respectively. Any Forward-looking Statement included in this press release is made as of the date of this press release and, except as required by law, Cronos disclaims any obligation to update or revise any Forward-looking Statement. Readers are cautioned not to put undue reliance on any Forward-looking Statement. Cronos Group Contact Anna Shlimak
