07:55 AM EST, 11/12/2024 (MT Newswires) -- Cronos Group ( CRON ) , a global cannabinoid company, was at last look up 7.6% in US premarket trade on Tuesday after saying it swung to a profit in the third quarter on record net revenue and ongoing operating expense savings.

The company, which also said it sees long-term margin improvement, reported Q3 net income of US$7,324 million versus a loss of US$1,590 million in the year-earlier period.

Net revenue in Q3 increased by 38% year-over-year to $34.3 million. The company said the increase was primarily due to higher cannabis flower and extract sales in the Canadian market, higher cannabis flower sales in Israel, and sales to other international markets consisting of Australia, Germany and the United Kingdom. Cronos GrowCo contributed $4.3 million of cannabis flower sales in both the three and nine months ended Sept. 30.

Among other highlights, adjusted EBITDA of $(6.0) million in Q3 2024 improved by $9.2 million from Q3 2023. It said the improvement year over year was primarily driven by higher net revenue, improved Adjusted Gross Profit and a decrease in general and administrative expenses.

The company had $862 million in cash and cash equivalents.

On guidance and outlook. the company reiterates its previously announced operating expense savings target of $5 to $10 million on a standalone basis in 2024 primarily driven by savings in general and administrative, sales and marketing and research and development. It said the organizational and cost savings initiatives are intended to position the company to drive profitable and sustainable growth over time. The operating expense savings target excludes the impact of the consolidation of Cronos GrowCo's results into the company's financial statements.

"Our results this quarter demonstrate that our long-term strategy is working. With record net revenue and a disciplined approach to operating expenses, Cronos ( CRON ) operates more efficiently and effectively than ever before, and we anticipate long-term margin improvement. Our consolidation of Cronos Growing Company has further strengthened our supply chain, which we anticipate will lead to improved margins," said Mike Gorenstein, Chairman, President and CEO, Cronos ( CRON ).

He added: "With an industry leading balance sheet, we are well-positioned to expand into new legal markets and drive future growth opportunities."

Cronos ( CRON ) was down $0.09 or 3.2% at $2.71 on the TSX yesterday.