LAVAL, Quebec — Crescita Therapeutics Inc. (TSX: CTX and OTC US: CRRTF) (“Crescita” or the “Company”), a growth-oriented, innovation-driven Canadian commercial dermatology company, today reported its financial results for the third quarter ended September 30, 2024 (“Q3-2024”). All amounts presented in this press release are in thousands of Canadian dollars (“CAD”) unless otherwise noted and […]

Crescita Reports Third Quarter 2024 Results

LAVAL, Quebec — Crescita Therapeutics Inc. (TSX: CTX and OTC US: CRRTF) (“Crescita” or the “Company”), a growth-oriented, innovation-driven Canadian commercial dermatology company, today reported its financial results for the third quarter ended September 30, 2024 (“Q3-2024”). All amounts presented in this press release are in thousands of Canadian dollars (“CAD”) unless otherwise noted and […]

For the nine months ended September 30, 2024, total revenue was $12,678 compared to $12,797 for the nine months ended September 30, 2023. The net decrease of $119 was mainly driven by lower Manufacturing revenue from the cancellation of certain purchase orders by our largest Manufacturing client, partly offset by the growth in our Skincare and Licensing segments, mainly due to the same factors as for the quarter.

Gross Profit and Gross Margin For the three months ended September 30, 2024, gross profit was $1,967, representing a gross margin of 54.7%, compared to $1,499 and 49.4%, respectively, for the three months ended September 30, 2023. The net increases in gross profit of $468 and in gross margin of 5.3% were mainly due to higher overall revenue, as explained above, favorable product and channel mix, as well as lower obsolescence charges in our Skincare segment year-over-year, partly offset by the impact of lower margin Pliaglis product sales in our Licensing segment.

For the nine months ended September 30, 2024, gross profit was $6,613, representing a gross margin of 52.2%, compared to $7,304 and 57.1%, respectively, for the nine months ended September 30, 2023. The net decreases in gross profit of $691 and in gross margin of 4.9% were mainly due to overall lower Manufacturing segment volumes year-over-year, driven in part, by the fulfilment in the prior year of higher-margin purchase orders which did not repeat, and the impact of pricing concessions relating to a purchase order from our largest Manufacturing client that was deferred from 2023 into Q1-2024.

Operating Expenses For the three and nine months ended September 30, 2024, total operating expenses were $3,139 and $9,560, respectively, compared to $2,880 and $9,147 for the comparable periods of 2023. The increases of $259 and $413 for the quarter and year-to-date periods were mainly due to higher consulting fees and commercial partnership fees to support our digital strategy, as well as acquisition-related and integration costs incurred in connection with the acquisition of Occy’s assets.

Cash and Cash Equivalents Cash and cash equivalents were $8,438 at September 30, 2024, reflecting a net decrease of $574 in the quarter, mainly as a result of investments in specialized equipment, totaling $0.8 million during the quarter.

Non-IFRS Financial Measures We report our financial results in accordance with IFRS. However, we use certain non-IFRS financial measures to assess our Company’s performance. We believe these to be useful to management, investors, and other financial stakeholders in assessing Crescita’s performance. The non-IFRS measures used in this press release do not have any standardized meaning prescribed by IFRS and are therefore not comparable to similar measures presented by other issuers. These measures should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with IFRS. The following are the Company’s non-IFRS measures along with their respective definitions