Q4 2024 Cronos Group Inc Earnings Call

February 27, 2025

Good morning.

Antoine: My name is Antoine and I'll be your conference operator today.

Speaker Change: Like to welcome everyone to Kronos groups fourth quarter and full year 2024 earnings Conference call. Today's call is being recorded at this time I would like to turn the call over to honestly Merrick Chief strategy Officer. Please go ahead.

Speaker Change: Thank you Anton and thank you for joining us today to review your Crown in the 'twenty 'twenty, four all year and fourth quarter financial and business performance today, I'm joined by Chairman, President and CEO, Mike Weinstein and our CFO Jamie at home.

Speaker Change: <unk> issued a news release announcing our financial results. This morning, which is filed on our Edgar and SEDAR profile. This information in the prepared remarks will also be posted on our website under Investor Relations.

Speaker Change: Before I turn the call over to Mike, Let me remind you that we may make forward looking statements and refer to non-GAAP financial measures. During this call. These forward looking statements are based on management's current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

Speaker Change: And the forward looking statements.

Speaker Change: Factors that could cause actual results to differ material materially from expectations are detailed in our earnings materials and our SEC filings that are available on our website by which any forward looking statements made during this call are qualified in their entirety information about non-GAAP financial measures, including reconciliations.

Speaker Change: U S. GAAP can also be found in the earnings materials that are available on our website lastly, we will be making statements regarding market share information throughout this conference call unless otherwise stated all market share data is provided by high fire. We will now make prepared remarks, and then we'll move to a question and answer session.

Speaker Change: That I'll pass it over to Kronos is chairman President and CEO, Mike Weinstein.

Mike Weinstein: Thank you Anna and good morning, everyone three years ago, when I returned as Kronos as CEO, we set ambitious goals to deliver robust top line growth improved margins and right size. Our operating expenses today I'm proud to say that these goals are coming to fruition and can be seen throughout the business.

Mike Weinstein: With yet another quarter of solid results and our unwavering commitment to disciplined operating expenses, we're showcasing our ability to drive growth, while enhancing efficiency across our business.

Mike Weinstein: Year over year, we grew annual net revenue by 35%, we nearly doubled our adjusted gross margins and continue to exercise discipline in the management of our operating expenses.

Mike Weinstein: Our 2024 results are evidence that our business is performing and we continue to lead the global cannabis industry and product innovation and exceptional quality.

Mike Weinstein: Bolstered by our robust balance sheet, we are in an exceptional position to seize future growth opportunities and further strengthen our leadership in the markets. We serve as we look forward to 2025.

Mike Weinstein: In 2024, we invested in <unk> to expand its cultivation and production capabilities in order to ensure consistent supply of high quality candidates at greater scale.

Mike Weinstein: This strategic move was aimed to improve operational efficiency reduce costs and optimize margins by leveraging advanced growing techniques.

Mike Weinstein: We are eager for the new supply from the investments come online in order to feed the growing demand in the markets, we operate in and new markets as they become available to us.

Mike Weinstein: I feel confident that we have positioned ourselves to better meet growing consumer demand maintain product quality and support our expanding portfolio of brands and products in a prudent and thoughtful way.

Mike Weinstein: Our expansion of <unk> is progressing well in Q4 health, Canada approved amendments to the site perimeter and we expect to finish construction of the expand cultivation and processing facilities in Q2 with first harvest and sales of the new area expected to begin in the second half of 2025.

Mike Weinstein: Up until the first sales and the expanded facility, we have the option to purchase up to 80% of brokers total production.

Mike Weinstein: Once the expansion of sales begin kratos will have the option to purchase up to 70% of the total production from the facility.

Mike Weinstein: The <unk> expansion positions us to capitalize on Canadian domestic demand and will fuel international growth opportunities in 2025.

Mike Weinstein: The past year have been incredibly proud of the strides we've made in R&D, including product development and innovation.

Mike Weinstein: Carlos has achieved significant advancement canvas genetics with improvements not only in new strains that meet consumer preferences, but also reaching new levels of cannabinoid deal.

Mike Weinstein: This is a result of your spend dedicated to bringing in tissue culture.

Mike Weinstein: Consumers are consistently shopping for a flower value proposition based on our price potency equation and our genetics are helping us to meet this demand, which has cemented us at the top performing flower brand in Canada and internationally.

Mike Weinstein: Now turning to brand updates.

Mike Weinstein: I'm happy to share that expansion ended the year as the number one cannabis brand in Canada by market share solidifying its leadership position.

Mike Weinstein: This achievement is fueled by number one rankings in both edibles and flower and number four position in <unk> and a number 7% per year olds.

Steve: Steve just consistent market share growth is a testament to our unwavering commitment to quality innovation and delivering differentiated products that resonate with consumers in a highly competitive Canadian adult use market.

Steve: And the gummy category, our industry, leading <unk> products captured 23% market share in Q4 with five of the top 10, best selling edibles in Canada, all part of the salary lineup.

Steve: Our fully blossom towers innovation, featuring 10 milligrams of THC per piece have been partially particularly well received by consumers.

Steve: In Q4, we launched two new fully blasted products Peach Orange and Strawberry mango.

Steve: As well as the new CBD Berry variety pack, which debuted in BC at the end of December.

Steve: Each variety pack contains 30 gummies with 30 milligrams of CBD in each coming in three flavors.

Steve: Blue Raspberry watermelon, Strawberry, mango and blueberry Aussie. Additionally.

Steve: Additionally, our Lord Jones brand has made significant strides in the chocolate category, finishing the year at the third best selling chocolate brand in Canada.

Steve: In January we also launched a new Lord Jones chocolate fusion flavor, Fudge, Brownie, which features and even ratio CBS CBD and THC.

Steve: Spinach continues to show its strength in the flower category holding the number one spot for Q4 and full year with 6% market share.

Steve: This success is driven by popular genetics like GMO cookies wedding cake space case, and Sarah came available in a variety of sizes.

Steve: The ongoing achievements of our breeding program and the operational excellence that broke out and further cement our leadership in this category, ensuring consistent delivery of quality products to meet consumer demand.

Steve: While finished showed strong growth in Florida in 2024, and we still see strong demand, we do not expect that growth to continue until the back half of 2025 additional supply from the <unk> expansion becomes available.

Steve: In order to prepare for the next phase of growth, we will continue to strategically allocate the existing supply across the finish in Canada and peace naturals internationally.

Steve: In Q4 or at least Blue Monster payrolls under our new regional Quebec brands Dominique.

Steve: Our regional brands Omega tailored to meet the unique preferences and needs of the Quebec market offering products that resonate with the provinces distinct candidates culture.

Steve: The brand strategic approach ensures that capture the essence of Quebec market trend combining local insights with exceptional product development to build trust and loyalty among cannabis can do this in the region.

Steve: Our strategy has always been to develop a portfolio of best selling disruptive branded products that we can launch in new markets as candidates regulations open globally.

Steve: The <unk> brand is becoming the number one best selling brand in Canada validation of our strong capabilities and we're just getting started and expanding our winning portfolio of <unk> products and bring them to market globally.

Steve: Now moving to Israel. Our team there has shown remarkable performance throughout Q4 with record volume sold in the highest sales per quarter in 2024.

Steve: Photos, Israel those significant momentum throughout the year, despite a very competitive market with evolving dynamics, including increased competition tariff threats declining patient growth entrance of hmos and the ongoing middle East conflict.

Steve: Despite all this peace naturals branded product portfolio continues to grow.

Steve: These natural portfolio was overhauled with a revised pricing strategy with focused cultivars that meet the needs of our patient base.

Steve: Hiro cultivars like wedding cake and GMO, along with changes implemented in the portfolio drove growth throughout 2024.

Steve: Peace Naturals ended the year as the number one flower brand in Israel with 24% market share in the brand's oil offerings and it is the fourth most popular brand 9% market share. According to pharmacy data collected by Kronos.

Steve: I'm incredibly proud of our turnaround in this market and look forward to launching more quality products in 2025.

Steve: Internationally, we've made significant progress in the markets. We have entered and are excited about the opportunities ahead.

Steve: In Germany, our peace Naturals brand is gaining strong traction and continues to grow.

Steve: Market penetration is a big focus for us in 2025, we're confident in the momentum we are building, especially as we're offering the same high quality products propelled us to number one position in flower in Canada.

Steve: With this foundation, we believe we have a clear ability to win and are well positioned to capture even greater market share in Germany and elsewhere.

Steve: Similarly in the U K, while still early we're already seeing promising growth with peace naturals, and our enthusiasm pediatric about the significant potential for expansion in this emerging market.

Steve: These developments underscore our commitment to becoming a global leader in the cannabis industry.

Steve: We've ended the year strong and I'm proud of the accomplishments we've made throughout 2024.

Steve: Product maintain the strongest balance sheet in the industry with cash and cash equivalents of $859 million reinforcing our ability to invest in growth innovation and global expansion.

Speaker Change: Each quarter showed significant year over year revenue increases highlighting our continued market expansion and sales momentum now I'll turn it over to James to walk through the fourth quarter financials.

James: Thanks, Mike and good morning, everyone.

James: In 2024, we increased net revenue, 35% year over year to $117 $6 million with strong performance in Canada, and Israel and international markets picking up well.

Operating expenses declined by $5 million versus the prior year adjusted EBITDA improved by 45% year over year and operating cash flow improved by $61 7 million to positive $18 8 million.

James: I will now review our fourth quarter of 2024 results, which now include the consolidation of <unk> financials.

James: The company reported consolidated net revenue of $30 3, million% to 27% increase from the prior year period.

James: Net revenue for Kronos, excluding <unk> was $28 2 million, representing 18% growth year over year on a standalone basis.

James: <unk> net revenue was $2 1 million for Q4 of 2024.

James: The net revenue increase was primarily driven by higher candidates flower and extract sales in Canada and higher flower sales in Israel and other countries.

James: Gross profit in the fourth quarter with $10 8 million equating to a 36% gross margin growth.

James: Gross profit was positively impacted by an adjustment of $1 8 million in connection with the Finalization of the purchase accounting for the Kronos cocoa transaction, which resulted in a reduction of the fair value of inventory acquired in the corresponding inventory step. Our previously recorded in cost of sales in Q3, resulting in adjusted gross profit of $9 million equating to a 30%.

James: Adjusted gross margin, we will continue providing this adjustment until the inventory that was stepped up to fair market value through the purchase accounting adjustment has been sold through as we believe it is useful in reviewing and evaluating our ongoing performance.

James: For full year 2024 year over year, adjusted gross profit improved by $18 6 million and adjusted gross margin improved by 12 percentage points to 26% nearly doubling our gross margin from the prior year the.

James: The increase was primarily driven by higher sales of cannabis flower and extract sales in Canada higher cannabis flower sales in Israel and production cost improvement.

James: Adjusted EBITDA in the fourth quarter was negative $7 2 million, representing a $7 6 million improvement from the prior year period.

James: <unk> was driven by increased revenue and higher adjusted gross profit.

James: The disciplined approach to our operating expenses employee date enabled us to achieve savings of $8 7 million for 2024 versus the prior year for Kronos on Standalone basis.

With this we achieved the high end of the range for our previously announced guidance of a reduction of $5 million to $10 million for Standalone Kronos.

James: The operating expense savings were driven by cost reductions in general and administrative research and development and sales and marketing.

James: Going into 2025, even with the addition of <unk> Opex.

James: We expect our Opex to remain flat. In addition, our reported Capex previously announced facility expansion that broke up something to be mindful of looking into 2025.

James: Turning to the balance sheet and cash flow statement. The company ended the quarter with $859 million in cash and cash equivalent cash and cash equivalents were down 3 million from Q3, 2024, driven primarily by Capex spend in Q4 dollars 24, a $3 7 million in FX fluctuations, partially offset by cash from operations of $7 7 million in 2024.

James: On a full year basis capital expenditure increased $9 $7 million year over year, reflecting investments in our cocoa facility and improved automation capabilities in our peace Naturals campus that's cleaner.

James: During 2024, we generated $18 8 million of cash from operating activities compared to 2023, where cash used was $42 8 million representing an increase in cash flow from operating activities of $61 7 million.

James: This change was primarily driven by a $32 8 million tax payment made in 2023 connected to the previously disclosed relinquishment by Altria of its warrant to purchase additional shares of the company in 2022 of $38 8 million increase in net income after adjusting for noncash items during 2024 compared to 2023 and higher interest received.

James: As a result free cash flow for Q4, 2024 was positive $4 million compared to a positive $15 million in the prior year period free cash flow for the full year 2020 forward positive five 7% compared to a negative $46 3 million for the full year of 2023, representing a $51 9 million improvement.

James: Our cash balance is stable and you can see the underlying fundamentals of our operations are showing significant improvement looking back on the progress we've made I share and my confidence in the trajectory of the business and our preparedness for entry into new markets as they become available.

James: With that I would like to hand, it back to Mike for a brief comment before going into Q&A.

Throughout this past year, we have demonstrated strong performance across all quarters, driven by robust revenue growth improved margins and disciplined cost management.

James: We solidified our market leadership in Canada, and Israel achieved significant milestones in international markets and continue to innovate with new product launches with the <unk>.

James: <unk> balance sheet, and a clear strategic focus kratos is well positioned to capitalize on future growth opportunities and enhance our position in the global cannabis industry.

James: As we look ahead, we remain focused on innovation operational excellence and strategic expansion.

James: Our core business is performing exceptionally well and we are well positioned to capitalize on the growing global cannabis market as we look forward to 2025.

James: With that I'll open the line for questions.

James: Thank you.

James: At this time, we will conduct a question and answer session.

James: As a reminder to ask a question you need to press star one on your telephone and wait for your name to be announced.

James: To withdraw your question. Please press star one again.

James: Please standby, while we compile the Q&A roster.

James: Ooh.

James: I am showing no questions at this time. Thank you for your participation in today's conference.

James: This does conclude the program you may now disconnect.

James: Okay.

James: [music] okay.

James: Yes.

James: [music].

James: Yeah.

[music].

James: [music].

James: Good morning.

Antoine: My name is Antoine and that will be a conference operator today.

Antoine: Like to welcome everyone to Kronos groups fourth quarter and full year 2024 earnings Conference call. Today's call is being recorded at this time I would like to turn the call over to <unk> Chief strategy Officer. Please go ahead.

Speaker Change: Thank you Anton and thank you for joining us today to review your chronic 'twenty 'twenty four full year and fourth quarter financial and business performance today, I'm joined by Chairman, President and CEO, Mike <unk> and our CFO Jamie.

Speaker Change: <unk> issued a news release announcing our financial results. This morning, which is filed on our Edgar and SEDAR profile. This information in our prepared remarks will also be posted on our website under Investor Relations.

Before I turn the call over to Mike, Let me remind you that we may make forward looking statements and refer to non-GAAP financial measures. During this call. These forward looking statements are based on management's current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

Speaker Change: And the forward looking statements.

Speaker Change: That I'll pass it over to Kronos is chairman President and CEO, Mike Weinstein.

Speaker Change: Yeah.

Speaker Change: Thank you Anna and good morning, everyone three years ago, when our attorneys Kronos as CEO, we set ambitious goals to deliver robust top line growth improved margins and right size, our operating expenses today I'm proud to say that these goals are coming to fruition and can be seen throughout the business with yet another quarter of solid results.

Speaker Change: And our unwavering commitment to disciplined operating expenses, we're showcasing our ability to drive growth, while enhancing efficiency across our business.

Speaker Change: Year over year, we grew annual net revenue by 35% nearly doubled our adjusted gross margins and continue to exercise discipline in the management of our operating expenses.

Speaker Change: Our 2024 results are evidence that our business is performing and we continue to lead the global cannabis industry and product innovation and exceptional quality.

Speaker Change: Bolstered by our robust balance sheet, we are in an exceptional position to seize future growth opportunities and further strengthen our leadership in the markets. We serve as we look forward to 2025.

Speaker Change: In 2024, we invested in broker to expand its cultivation and production capabilities in order to ensure consistent supply of high quality candidates at greater scale.

Speaker Change: This strategic move was aimed to improve operational efficiency reduce costs and optimize margins by leveraging advanced growing techniques.

Speaker Change: We are eager for the new supply from that investment to come online in order to feed the growing demand in the markets, we operate in and new markets as they become available to us.

Speaker Change: I feel confident that we have positioned ourselves to better meet growing consumer demand maintain product quality and support our expanding portfolio of brands and products in a prudent and thoughtful way.

Speaker Change: Our expansion of <unk> is progressing well in Q4 health, Canada approved amendments to the site perimeter and we expect to finish construction of the expand cultivation and processing facilities in Q2 with first harvest and sales of the new area expected to begin in the second half of 2025.

Speaker Change: Up until the first sales and the expanded facility, we have the option to purchase up to 80% of brokers total production.

Speaker Change: Once the expansion in sales again, Carlos will have the option to purchase up to 70% of the total production from the facility.

Speaker Change: The <unk> expansion positions us to capitalize on Canadian domestic demand and will fuel international growth opportunities in 2025.

The past year I'm incredibly proud of the strides we've made in R&D, including product development and innovation.

Speaker Change: Kratos has achieved significant advancement in Kansas genetics with improvements not only in new strains and meet consumer preferences, but also reaching new levels of cannabinoid deal.

Speaker Change: This is a result of your spend dedicated to our breeding and tissue culture.

Speaker Change: Consumers are consistently shopping for a flower value proposition based on our price potency equation and our genetics are helping us to meet this demand, which has selected us as the top performing fire brand in Canada and internationally.

Speaker Change: Now turning to brand updates.

Speaker Change: I am happy to share the stage and ended the year as the number one cannabis brand in Canada by market share solidifying its leadership position.

Speaker Change: This achievement is fueled by number one rankings in both edibles and flower and number four position in base and a number 7% per year olds.

Speaker Change: Steve just consistent market share growth is a testament to our unwavering commitment to quality innovation and delivering differentiated products that resonate with consumers in a highly competitive Canadian adult use market.

Speaker Change: And the gummy category, our industry, leading <unk> products captured 23% market share in Q4 with five of the top 10, best selling edibles in Canada, all part of the salary lineup.

Speaker Change: Our fully blossom towers innovation, featuring 10 milligrams of THC per piece have been partially particularly well received by consumers.

Speaker Change: In Q4, we launched two new fully blasted products Peach Orange and Strawberry mango.

Speaker Change: As well as the new CBD Berry variety pack, which debuted in BC at the end of December.

Speaker Change: Each variety pack contains 30 gummies with 30 milligrams of CBD in each coming in three flavors.

Speaker Change: Blue Raspberry, watermelon, Strawberry, mango and blueberry assay <unk>.

Speaker Change: Additionally, our Lord Jones brand has made significant strides in the chocolate category, finishing the year at the third best selling chocolate brand in Canada.

Speaker Change: In January we also launched new Lord Jones, Chocolate fusion flavor, Fudge, Brownie, which features and even ratio of CBS CBD and THC.

Speaker Change: Spinach continues to show its strength in the flower category holding the number one spot for Q4 and full year with 6% market share.

Speaker Change: This success is driven by popular genetics like GMO cookies wedding cake space case, and Sarah Kevin available on a variety of sizes.

Speaker Change: The ongoing achievements of our breeding program and the operational excellence of <unk> and further cement our leadership in this category, ensuring consistent delivery of quality products to meet consumer demand.

Speaker Change: While finished showed strong growth in Florida in 2024, and we still see strong demand, we do not expect that growth to continue until the back half of 2025 additional supply from the <unk> expansion becomes available.

Speaker Change: In order to prepare for the next phase of growth, we will continue to strategically allocate the existing supply across the finish in Canada and peace naturals internationally.

In Q4, we released Blue Monster Payrolls under our new regional Quebec Brands, Inc.

Speaker Change: Our regional brands Omega tailored to meet the unique preferences and needs of the Quebec market offering products that resonate with the provinces distinct cannabis culture.

Speaker Change: The brand strategic approach ensures that capture the essence of Quebec market trend, combining local insights with exceptional product development to build trust and loyalty among cannabis and do this in the region.

Speaker Change: Our strategy has always been to develop a portfolio of best selling disruptive branded products that we can launch in new markets as candidates regulations opened globally.

Speaker Change: The <unk> brand is becoming the number one best selling brand in Canada validation of our strong capabilities and we're just getting started and expanding our winning portfolio of <unk> products and bring them to market globally.

Speaker Change: Now moving to Israel. Our team there has shown remarkable performance throughout Q4 with record volume sold in the highest sales per quarter in 2024.

Speaker Change: Carlos Israel built significant momentum throughout the year, despite a very competitive market with evolving dynamics, including increased competition tariff threats declining patient growth entrance of hmos and the ongoing middle East conflict.

Speaker Change: Despite all this the peace naturals branded product portfolio continues to grow.

Speaker Change: These natural portfolio was overhaul with a revised pricing strategy with focused cultivars that meet the needs of our patient base.

Speaker Change: Hiro cultivars like wedding cake and GMO, along with changes implemented in the portfolio drove growth throughout 2024.

Speaker Change: Peace Naturals ended the year as the number one flower brand in Israel, with 24% market share and the brand oil offerings and it is the fourth most popular brand with 9% market share. According to pharmacy data collected by Kronos.

Speaker Change: I'm incredibly proud of our turnaround in this market and look forward to launching more quality product in 2025.

Speaker Change: Internationally, we've made significant progress in the markets. We have entered and are excited about the opportunities ahead.

Speaker Change: In Germany, our peace Naturals brand is gaining strong traction and continues to grow.

Speaker Change: Market penetration is a big focus for us in 2025, we're confident in the momentum we are building, especially as we're offering the same high quality products propelled us to number one position in flower in Canada.

Speaker Change: With this foundation, we believe we have a clear ability to win and are well positioned to capture even greater market share in Germany and elsewhere.

Speaker Change: Similarly in the U K, while still early we're already seeing promising growth with peace naturals, and our enthusiasm pediatric about the significant potential for expansion in this emerging market.

Speaker Change: These developments underscore our commitment to becoming a global leader in the cannabis industry.

Speaker Change: We've ended the year strong and I'm proud of the accomplishments we've made throughout 2024.

Speaker Change: Product maintain the strongest balance sheet in the industry with cash and cash equivalents of $859 million reinforcing our ability to invest in growth innovation and global expansion.

James: Thanks, Mike and good morning, everyone.

James: In 2024, we increased net revenue and 35% year over year to $117 $6 million with strong performance in Canada, and Israel and international markets picking up well operating.

James: Operating expenses declined by $5 million versus the prior year adjusted EBITDA improved by 45% year over year and operating cash flow improved by $61 7 million to positive $18 8 million.

James: I will now review our fourth quarter of 2024 results, which now include the consolidation of <unk> financials.

James: The company reported consolidated net revenue of $30 3 million or 27% increase from the prior year period.

James: Net revenue for Kronos, excluding <unk> was $28 2 million, representing 18% growth year over year on a standalone basis.

James: While <unk> net revenue was $2 1 million for Q4 of 2024.

James: The net revenue increase was primarily driven by higher candidates flower and extract sales in Canada and higher flower sales in Israel and other countries.

James: Gross profit in the fourth quarter with $10 8 million equating to a 36% gross margin growth.

James: Gross profit was positively impacted by an adjustment of $1 8 million in connection with the Finalization of the purchase accounting for the Kratos cocoa transaction, which resulted in a reduction of the fair value of inventory acquired in the corresponding inventory step. Our previously recorded in cost of sales in Q3, resulting in adjusted gross profit of $9 million equating to a 30%.

James: The increase was primarily driven by higher sales of cannabis flower and extract sales in Canada higher cannabis flower sales in Israel and production cost improvement.

James: Adjusted EBITDA in the fourth quarter was negative $7 2 million, representing a $7 6 million improvement from the prior year period. The improvement was driven by increased revenue and higher adjusted gross profit.

James: The disciplined approach to our operating expenses employee to date enabled us to achieve savings of $8 7 million for 2024 versus the prior year for Kronos on Standalone basis.

James: With this we achieved the high end of the range for our previously announced guidance of a reduction of $5 million to $10 million for Standalone Kronos.

James: The operating expense savings were driven by cost reductions in general and administrative research and development and sales and marketing.

James: Going into 2025, even with the addition of <unk> Opex.

James: We expect our Opex to remain flat. In addition, our reported Capex previously announced facility expansion that broke up something to be mindful of looking into 2025.

James: During 2024, we generated $18 $8 million of cash from operating activities compared to 2023, where cash used with $42 8 million, representing an increase in cash flow from operating activities of $51 7 million.

James: As a result free cash flow for Q4, 2024 with positive $4 million compared to a positive $15 million in the prior year period free cash flow for the full year 2020 forward positive five 7% compared to a negative $46 3 million for the full year of 2023, representing a $51 9 million improvement.

James: Throughout this past year, we have demonstrated strong performance across all quarters, driven by robust revenue growth improved margins and disciplined cost management.

James: Solidified our market leadership in Canada, and Israel achieved significant milestones in international markets and continue to innovate with new product launches.

James: The strong balance sheet and a clear strategic focus kratos is well positioned to capitalize on future growth opportunities and enhance our position in the global cannabis industry.

James: As we look ahead, we remain focused on innovation operational excellence and strategic expansion our.

James: Our core business is performing exceptionally well and we are well positioned to capitalize on the growing global cannabis market as we look forward to 2025.

James: With that I'll open the line for questions.

James: Thank you at.

James: At this time, we will conduct a question and answer session.

James: As a reminder to ask a question you need to press star one on your telephone and wait for your name to be announced too.

James: To withdraw your question. Please press star one again.

James: Please standby, while we compile the Q&A roster.

James: I am showing no questions at this time. Thank you for your participation in today's conference.

James: This does conclude the program you may now disconnect.

Q4 2024 Cronos Group Inc Earnings Call

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