Cronos Group Inc (NASDAQ:CRON) Q4 2022 Earnings Conference Call February 28, 2023 8:30 AM ET

Company Participants

Shayne Laidlaw - Investor Relations

Mike Gorenstein - Chairman, President and Chief Executive Officer

James Holm - Chief Financial Officer

Conference Call Participants

Michael Freeman - Raymond James

Andrew Carter - Stifel

John Zamparo - CIBC Capital Markets

Vivien Azer - Cowen

Tamy Chen - BMO Capital Markets

Nadine Sarwat - AllianceBernstein

Operator

Good morning. My name is Corey and I will be your conference operator today. I would like to welcome everyone to Cronos Group’s 2022 fourth Quarter and Full Year Earnings Conference Call. Today’s call is being recorded. [Operator Instructions] At this time, I would like to turn the call over to Shayne Laidlaw, Investor Relations. Please go ahead.

Shayne Laidlaw

Thank you, Corey and thank you for joining us today to review Cronos’ 2022 fourth quarter and full year financial and business performance. Today, I am joined by our Chairman, President and CEO, Mike Gorenstein and our CFO, James Holm. Cronos issued a news release announcing our financial results this morning, which is filed on our EDGAR and SEDAR profile. This information as well as the 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 in the forward-looking statements. 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 U.S. GAAP, can also be found in the earnings materials that are available on our website. We will now make prepared remarks and then we will move into a question-and-answer session.

With that, I will pass it over to Cronos’ Chairman, President and CEO, Mike Gorenstein.

Mike Gorenstein

Thank you, Shayne, and good morning, everyone. I want to start our call today by reflecting on the transformative steps we took in 2022 to put our business on a better footing in preparations for the future growth of the global cannabis industry. In 2022, we embarked on a strategic realignment of our business centered on three key objectives. First, we centralized our function to improve strategic alignment. Second, we optimized our global supply chain to reduce complexity and drive enhanced innovation capabilities. And lastly, we implemented a cost reduction target to reduce operating expenses by $28 million to $25 million, which we overachieved. The realignment of our business was centered on our core objective to create a portfolio of borderless products and brands across adult-use product formats.