Cronos Group Inc (CRON) 2025 Q2 法說會逐字稿

Good morning. My name is Steven, and I will be your conference operator today. I would like to welcome everyone to Cronos Group's 2025 second quarter earnings conference call. Today's call is being recorded. At this time, I would like to turn the call over to Harrison Aaron, Senior Director, Investor Relations and Corporate Development. Please go ahead.

早安.我叫史蒂文，今天我將擔任你們的電話會議主持人。歡迎大家參加克羅諾斯集團2025年第二季財報電話會議。今天的電話會議正在錄音中。現在，我想把電話交給投資者關係和企業發展高級總監哈里森·亞倫。請開始。

Thank you, Steven, and thank you for joining us today to review Cronos' 2025 second quarter financial and business performance. Today, I am joined by our Chairman, President and CEO Mike Gorenstein; and our CFO, Anna Shlimak.

謝謝史蒂文，也謝謝您今天與我們一起回顧克羅諾斯2025年第二季的財務和業務表現。今天，與我一同出席的還有我們的董事長、總裁兼執行長 Mike Gorenstein 和財務長安娜施利馬克 (Anna Shlimak)。

Cronos issued a news release announcing our financial results this morning, which was filed on our EDGAR and SEDAR profiles. This information and the prepared remarks will also be posted on our website under Investor Relations.

Cronos今早發布了一份新聞稿，宣布了我們的財務業績，該新聞稿已在我們的EDGAR和SEDAR檔案中歸檔。這些資訊和準備好的評論也將發佈在我們網站的「投資者關係」欄位下。

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 in the forward-looking statements.

在我將電話會議轉交給麥克之前，請允許我提醒您，我們可能會在本次電話會議中做出前瞻性陳述，並參考非公認會計準則 (non-GAAP) 財務指標。這些前瞻性陳述是基於管理階層目前的預期和假設，這些預期和假設受風險和不確定性的影響，可能導致實際結果與前瞻性陳述中的預測有重大差異。

Factors that could cause actual results to differ 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 to US GAAP, can also be found in earnings materials that are available on our website.

可能導致實際結果與預期有重大差異的因素已詳述於我們網站上提供的收益資料和美國證券交易委員會 (SEC) 文件中，本次電話會議中所做的任何前瞻性陳述均受這些文件的約束。有關非公認會計準則 (Non-GAAP) 財務指標的資訊（包括與美國公認會計準則 (US GAAP) 的對帳表），也可在我們網站上提供的收益資料中找到。

Lastly, we will be making statements regarding market share information throughout this conference call, and unless otherwise stated, all market share data is provided by Hifyre. We will now make prepared remarks and then we'll move to a question and answer session. With that, I'll pass it over to Cronos' Chairman, President, and CEO, Mike Gorenstein.

最後，我們將在本次電話會議期間就市場份額資訊發表聲明。除非另有說明，所有市佔率數據均由 Hifyre 提供。現在，我們將進行準備好的發言，然後進入問答環節。接下來，我將把時間交給 Cronos 董事長、總裁兼執行長 Mike Gorenstein。

Thank you, Harrison, and good morning everyone. Cronos Group's core business continues to perform well, driven by robust demand across key markets and product categories. Despite flower supply constraints, we grew net revenue by 21% year over year, including the consolidation of GrowCo.

謝謝哈里森，大家早安。克羅諾斯集團的核心業務持續表現良好，這得益於主要市場和產品類別的強勁需求。儘管花卉供應受限，我們的淨收入年增了21%，其中包括合併GrowCo。

The strong demand we are seeing for our flower is a testament to our focus on developing best-in-class cordless products. We are pleased with the continued improvement in operating fundamentals in the first half, we remain focused on our key goals for the year.

我們看到市場對花卉產品的強勁需求，證明了我們專注於開發一流的無線產品。我們對上半年營運基本面的持續改善感到滿意，我們將繼續專注於實現全年的關鍵目標。

Launching our expanded cultivation capacity at GrowCo, improving our share position in Canada once this additional supply comes online, continuing to grow the business in higher margin international markets, and remaining disciplined on costs.

在 GrowCo 啟動我們擴大的種植能力，一旦這些額外供應上線，我們將提高在加拿大的份額地位，繼續在利潤率更高的國際市場上發展業務，並保持對成本的嚴格控制。

Our Spinach brand continues to be a standout performer, ending Q2 is the number two cannabis brand in Canada with a 4.7% market share across formats. In the flower category, Spinach ranked number three with 4.9% market share, despite ongoing supply constraints that have prevented us from fully meeting demand. This limited availability reflects the exceptional popularity of our flower products.

我們的菠菜品牌持續表現優異，截至第二季度，菠菜已成為加拿大第二大大麻品牌，各類大麻產品的市佔率為4.7%。儘管持續的供應限制導致我們無法完全滿足需求，菠菜仍以4.9%的市佔率位居花卉類別第三。有限的供應反映了我們花卉產品的巨大受歡迎程度。

Our team is strategically allocating inventory to ensure availability of top selling SKUs, while preparing to unlock significant additional capacity to the expansion of GrowCo. The initial sales of flower from the expansion are expected to begin this fall, and once fully online, this new capacity will help meet demand and re-accelerate growth.

我們的團隊正在策略性地分配庫存，以確保暢銷單品的供應，同時準備為 GrowCo 的擴張釋放大量額外產能。擴張後，花卉的首批銷售預計將於今年秋季開始。一旦全面上線，新增產能將有助於滿足需求並重新加速成長。

In the vape category, Spinach achieved the number four position overall with 6.5% share. And within the vape cartridge category, Spinach holds the number two ranking with 8.4% share with the Spinach pink lemonade vape, the bestselling 1.2 gram vape cartridge in Canada.

在電子煙類別中，Spinach 以 6.5% 的市佔率位居第四。在電子煙彈類別中，Spinach 憑藉 8.4% 的市佔率排名第二，其 1.2 克容量的 Spinach 粉紅檸檬水電子煙是加拿大最暢銷的電子煙彈。

We're incredibly pleased with our strength and vapes and look forward to launching innovative products in this category. We continue to demonstrate strong consumer demand and brand strength in this edibles category, with five Spinach gummies ranking in the top 10 of all edible products in Canada.

我們對我們的實力和電子煙產品感到非常滿意，並期待在這一類別中推出創新產品。我們在這一食品類別中繼續展現出強勁的消費者需求和品牌實力，其中五款菠菜軟糖躋身加拿大所有食品產品前十名。

Our industry-leading gummies maintain an impressive 20% market share in Q2, underscoring our continued leadership in innovative high-quality cannabis edibles and reflecting strong consumer loyalty to Spinach branded products.

我們行業領先的軟糖在第二季度保持了令人印象深刻的 20% 的市場份額，突顯了我們在創新高品質大麻食品領域的持續領導地位，並反映了消費者對菠菜品牌產品的強烈忠誠度。

Our Lord Jones brand has strengthened its premium positioning with the launch of concentrates. We recently launched Lord Jones Live Resin Caviar with standout offerings like Gorilla Grape and Orange Velvet. These high terpene, no compromise extracts pair premium strains with state of the art hardware, delivering a refined and flavorful experience for discerning consumers.

我們的 Lord Jones 品牌透過推出濃縮物強化了其高端定位。我們最近推出了 Lord Jones Live Resin Caviar，其中包括 Gorilla Grape 和 Orange Velvet 等出色產品。這些高萜烯含量、毫不妥協的萃取物將優質菌株與先進的硬體結合，為眼光獨到的消費者帶來精緻美味的體驗。

The Lord Jones brand remains the category leader in the hash infused pre-roll segment with 28.5% market share in Q2. We'll be launching Live Resin Caviar infused pre-rolls later this month, expanding the Lord Jones product line into new high-end market segments and supporting our leadership in the premium pre-roll category.

Lord Jones 品牌在第二季度佔據 28.5% 的市場份額，繼續領先哈希香料預捲市場。我們將於本月稍後推出 Live Resin Caviar 香料預卷，進一步拓展 Lord Jones 產品線，進軍新的高端市場，鞏固我們在高端預卷領域的領先地位。

Moving to the international side of the business, our core medical brand Peace Naturals and value brand Lip continue to grow in Israel. Cronos Israel posted another record quarter, growing revenue by 36% year over year by continuing to gain share within the competitive and evolving market.

談到國際業務，我們的核心醫療品牌 Peace Naturals 和價值品牌 Lip 在以色列持續成長。 Cronos Israel 本季再創佳績，營收年增 36%，在競爭激烈、不斷發展的市場中持續擴大市場佔有率。

Peace Naturals ended the quarter of the number one flower brand in Israel with well over 20% market share, according to pharmacy data collected by Cronos. Cronos Israel launched several new flower strains in Q2 under both the Peace Naturals and Lip brands, bolstering its bestselling portfolio of products.

根據 Cronos 收集的藥房數據，Peace Naturals 在本季以超過 20% 的市佔率成為以色列排名第一的花卉品牌。 Cronos Israel 在第二季度推出了 Peace Naturals 和 Lip 品牌的幾款新花卉品種，進一步增強了其暢銷產品組合。

Last quarter, we discussed a proposed duty on Canadian medical cannabis imports in Israel, and I'd like to provide an update. Israel's finance minister rejected the proposed duty in April 2025, leading to an attempted legal challenge.

上個季度，我們討論了以色列對加拿大醫用大麻進口徵收關稅的提議，我想提供最新情況。以色列財政部長於2025年4月否決了這項擬議的關稅，並試圖透過法律途徑進行抗辯。

In the July 2025 decision, the Israel Ministry of Justice concluded that the Minister of Finance's veto of the proposed duty was valid. We are incredibly pleased with the decision to veto the proposed duty. We have been investing and operating in Israel for nearly a decade, helping us to become the top medical cannabis provider in Israel.

在2025年7月的裁決中，以色列司法部認定財政部長對擬議徵稅的否決有效。我們對否決擬議徵稅的決定感到非常高興。我們在以色列投資和營運近十年，這幫助我們成為以色列最大的醫用大麻供應商。

We remain committed to serving Israel's medical cannabis patients, and Q2 is the second consecutive record quarter for us. We believe in a fair and equitable market structure that benefits Israel's medical cannabis patients, and we will continue to advocate for patient access and fair competition.

我們始終致力於服務以色列的醫用大麻患者，第二季是我們連續第二季創下紀錄。我們堅信公平公正的市場結構能夠惠及以色列的醫用大麻患者，並將繼續倡導患者可及性和公平競爭。

Internationally, Peace Naturals continues to grow. Germany is a standout market and was the largest contributor to year-over-year revenue growth for the business overall. The potential changes to the regulatory framework proposed in the past month, we see continued growth potential for our products in Germany.

Peace Naturals 在國際市場持續成長。德國市場表現突出，是公司整體營收年增的最大貢獻者。上個月，監管框架的潛在變化已提出，我們認為我們的產品在德國市場仍具有持續成長的潛力。

In Switzerland, Peace Naturals branded flower is now available within the country's medical cannabis network. We also launched Peace Naturals in Malta in June, and with Australia ramping up distribution, our core medical brand is now available in seven key global markets, including Canada, Israel, Germany, the UK, Australia, Switzerland, and Malta.

在瑞士，Peace Naturals 品牌大麻花現已在該國醫用大麻網絡銷售。我們也於今年6月在馬耳他推出了 Peace Naturals，隨著澳洲通路的不斷擴大，我們的核心醫用品牌現已涵蓋七個主要全球市場，包括加拿大、以色列、德國、英國、澳洲、瑞士和馬耳他。

Providing global medical markets with Cronos' portfolio of products is a key area of focus for us, and we're happy to report that our distribution keeps growing each quarter. Cronos maintained the strongest balance sheet in the industry with no debt and cash equivalents and short-term investments of $834 million reinforcing our ability to invest in growth, innovation, and global expansion.

為全球醫療市場提供 Cronos 的產品組合是我們關注的重點領域，我們很高興地報告，我們的分銷業務每季都在持續成長。 Cronos 保持著業內最強勁的資產負債表，沒有債務和現金等價物，短期投資達 8.34 億美元，這增強了我們投資於成長、創新和全球擴張的能力。

Now I'll turn it over to Anna to walk you through the second quarter financials.

現在我將讓安娜向大家介紹第二季的財務狀況。

Thanks Mike, and good morning. I will now review our second quarter 2025 results. The company reported consolidated net revenue of $33.5 million a 21% increase from the prior year period. Net revenue for Cronos, excluding GrowCo, was $31.2 million, representing a 13% growth year over year. GrowCo's net revenue was $2.2 million for Q2 2025.

謝謝麥克，早安。現在我將回顧我們2025年第二季的業績。公司報告合併淨收入為3350萬美元，年增21%。 Cronos（不含GrowCo）的淨收入為3,120萬美元，較去年同期成長13%。 GrowCo在2025年第二季的淨收入為220萬美元。

Overall, as of last quarter, the consolidated net revenue increase was primarily driven by higher flower sales in international markets and Israel, the consolidation of GrowCo, and higher extract sales in Canada.

總體而言，截至上個季度，合併淨收入的成長主要得益於國際市場和以色列的花卉銷售額成長、GrowCo 的合併以及加拿大萃取物銷售額成長。

Gross profit in the second quarter was $14.5 million, equating to a 43% gross margin, a significant improvement from 23% in Q2 2024. The year over year gross margin improvement was driven by the consolidation of GrowCo, higher average sales prices resulting from regional mix shifts and production efficiencies.

第二季毛利為 1,450 萬美元，相當於 43% 的毛利率，較 2024 年第二季的 23% 有顯著提高。毛利率較去年增加的原因是 GrowCo 的合併、區域組合變化導致的平均銷售價格上漲以及生產效率的提高。

Operating expenses, excluding restructuring costs were $19.1 million in the quarter, a year over year decline of $2.3 million, driven by a $2.2 million year over year decline in G&A. While operating expenses have been down year over year in the first half, we expect OpEx to be relatively flat on a year over year basis for the second half of 2025.

本季營運支出（不含重組成本）為1,910萬美元，較去年同期下降230萬美元，主要原因是一般及行政費用（G&A）較去年同期下降220萬美元。雖然上半年營運支出較去年同期下降，但我們預計2025年下半年營運支出將與去年同期基本持平。

Adjusted EBITDA on the second quarter was $1.7 million, an improvement of $12.7 million year over year, driven by the revenue and margin enhancing consolidation of GrowCo, a revenue mix shift to higher priced non-Canadian markets with Israel and International accounting for 43% of our revenue and reductions in operating expenses.

第二季調整後的 EBITDA 為 170 萬美元，比去年同期成長 1,270 萬美元，這得益於 GrowCo 的收入和利潤率提升、收入結構轉向價格更高的非加拿大市場（其中以色列和國際市場占我們收入的 43%）以及營運費用的減少。

Turning to the balance sheet and cash flow statement, the company ended the quarter with $834 million in cash equivalents, and short-term investments, down $3.4 million from Q1 2025, driven by approximately 7 million networking capital out.

談到資產負債表和現金流量表，該公司本季末的現金等價物和短期投資為 8.34 億美元，比 2025 年第一季減少 340 萬美元，原因是約 700 萬美元的網路資本流出。

As well as by cap spend and share repurchase of approximately $4 million each. This was partially offset by positive cash flow from operations before changes in working capital of approximately $10 million and approximately $2 million of FX benefits.

以及約400萬美元的資本支出和股票回購。這部分被約1000萬美元的營運資本變動前的營運活動現金流和約200萬美元的外匯收益所抵銷。

In July, we invested $18.5 million in high tide through a five-year convertible loan. The loan has a face value of $22 million with a 16% original issue discount and bears interest at 4% of the face value of the loan per annum payable quarterly.

7月份，我們透過一筆五年可轉換貸款向High Tide投資了1,850萬美元。該貸款票面價值2,200萬美元，原始發行折扣為16%，年利率為貸款票面價值的4%，每季支付一次。

If the loan is not converted, our yield to maturity is expected to be approximately 8%. Upon mutual agreement of Cronos and High Tide, the loan is convertible into High Tide equity at a price of CAD4.20 per share. Additionally, with this investment, we received a five-year common share purchase warrant exercisable for up to 3.84 million common shares of high tide at an exercise price of CAD3.91 per warrant share.

如果貸款不轉換，我們的到期收益率預計約為8%。經Cronos和High Tide雙方同意，該貸款可以每股4.20加元的價格轉換為High Tide的股票。此外，透過此項投資，我們獲得了一份五年期普通股認購權證，可行使最多384萬股High Tide普通股，行使價為每股3.91加元。

In closing, we posted another strong quarter demonstrating sustained growth and continued improvement in our operating fundamentals, despite the flower supply constraints we have been experiencing. We look forward to fall 2025 flower sales from GrowCo's expansion to relieve these supply constraints and drive further growth for our business. With that, I'd like to hand it back to Mike for a brief comment before Q&A.

最後，儘管我們一直面臨鮮花供應緊張的局面，但我們仍取得了又一個強勁的季度業績，展現出持續成長和營運基本面的持續改善。我們期待2025年秋季GrowCo擴張帶來的鮮花銷售能夠緩解這些供應緊張，並推動我們業務的進一步成長。至此，在問答環節之前，我想把發言時間交給Mike，請他簡短地發表一下看法。

To wrap up, our performance this quarter demonstrates that Cronos' core business is strong and resilient. The leading brands like Spinach and Lord Jones accelerating international momentum with our medical brand Peace Naturals and the GrowCo capacity expansion, we're well-positioned to capture both top and bottom line growth. We're confident in our strategy and excited about what's ahead for the rest of 2025. Thank you, and we'll now open the call for questions.

總而言之，我們本季的業績表明，Cronos 的核心業務強勁且富有韌性。 Spinach 和 Lord Jones 等領先品牌的國際化發展勢頭強勁，加上我們旗下的醫療品牌 Peace Naturals 和 GrowCo 產能擴張，我們已做好準備，實現營收和利潤的雙重成長。我們對自己的策略充滿信心，並對 2025 年剩餘時間的前景充滿期待。謝謝大家，現在開始提問環節。

(Operator Instructions)

（操作員指示）

Okay, I am showing no questions at this time. I'd like to thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

好的，我現在沒有問題。感謝您參加今天的會議。今天的節目到此結束。您可以斷開連線了。