Cronos Group, Inc. Q4 FY2024 earnings call

• Three years ago, when returning as CEO, goals were set for robust top line growth, margin improvement, and operating expense optimization, which are now being realized. • In 2024, invested in GrowCo to expand cultivation and production capabilities, with Q4 seeing Health Canada approve amendments to the site's perimeter, expecting expanded facilities to finish construction in Q2 2025 and first sales in the second half of 2025. • Spinach brand became the number one cannabis brand in Canada, driven by strong performance in edibles and flower, and SOURZ gummies having 23% market share in Q4. • Israel team had record volume sold in Q4 2024, with PEACE NATURALS brand as the number one flower brand in Israel. • Internationally, PEACE NATURALS brand is growing in Germany and showing potential in the UK, with focus on market penetration in 2025.

In 2024, Cronos grew annual net revenue by 35%. For the fourth quarter, consolidated net revenue was $30.3 million, a 27% increase year-over-year. Net revenue for Cronos excluding GrowCo was $28.2 million, an 18% year-over-year growth on a standalone basis, while GrowCo net revenue was $2.1 million in Q4 2024. In Canada, the Spinach brand ended the year as the number one cannabis brand, with 6% market share in the flower category. In the gummy category, SOURZ products captured 23% market share in Q4. In Israel, the PEACE NATURALS brand ended the year as the number one flower brand with 24% market share, and its oil offerings were the fourth most popular with 9% market share. Internationally, PEACE NATURALS brand is gaining traction in Germany and showing promising growth in the UK.

• In 2025, even with the addition of GrowCo's OpEx, operating expenses are expected to remain flat. • GrowCo expansion is progressing, with first sales from the expanded facility expected in the second half of 2025. • Focus on market penetration in Germany and further expansion in international markets like the UK.

• Market share data is subject to factors like competition, as mentioned Israel had evolving dynamics including increased competition, tariff threats, etc. • Regulatory changes in global cannabis markets could impact expansion plans. • FX fluctuations could affect financial performance.

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