InterCure Announces Preliminary Estimated 2023 Revenue of NIS 351 million and EBITDA of over NIS 50 million
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Insights
The financial results of InterCure, particularly the reported EBITDA of over NIS 20 million for H2 2023, which represents more than 14% of revenues, is a strong indicator of the company's operational efficiency. Despite the adverse events of a terrorist attack and the war in Gaza, the company's ability to maintain profitability for the fourteenth and fifteenth consecutive quarters is noteworthy. The receipt of tens of millions of shekels as partial advanced payments from the Israeli authorities for damages indicates a robust risk mitigation strategy. Investors should take note of the company's resilience in the face of geopolitical challenges and the potential for sustained profitability.
Furthermore, the company's expansion into the German market following cannabis reform and the establishment of a dedicated medical cannabis pharmacy chain could signal future revenue streams and market diversification. However, investors should remain cautious and monitor the company's ability to navigate the complex regulatory environments and competitive landscapes in these new markets.
InterCure's strategic partnership with TYSON 2.0 and the expansion of its GMP (Good Manufacturing Practice) SKU portfolio by over 40 new products in 2023 reflect a proactive approach to capturing market share in the evolving cannabis industry. The company's alignment with a premier cannabis brand and the expansion of its pharmacy chain to 24 locations demonstrate a commitment to brand and retail presence. The expected launch of products in Germany represents a significant step in the company's global expansion, capitalizing on the burgeoning European cannabis market. A critical factor for investors to consider is the company's ability to adapt to different consumer preferences and regulatory requirements across international markets, which can significantly impact the scalability of its operations.
The legal landscape surrounding cannabis is in flux, with InterCure's mention of the FDA's recent recommendations and the potential rescheduling of cannabis in the U.S. indicating a possible shift in regulatory barriers. This shift could have far-reaching implications for the company's operations and growth potential, especially considering its intention to watch developments closely. Legal changes can lead to new market opportunities or increased competition. Investors should be aware of the legal risks and opportunities associated with the rescheduling of cannabis, as it could affect the company's strategic positioning and its ability to capitalize on new markets.
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Revenues for H2 2023 were affected by damages caused by the terrorist attack on October 7, 2023 and the war in
Gaza . However, InterCure it is entitled to full compensation from the Israeli authorities for all direct and indirect damages caused. To date, InterCure has already received tens of millions of shekels as partial advanced payments from the Israeli authorities. -
H2 2023’s estimated EBITDA1 to reach over
NIS 20 million and over14% of revenues. - Both Q3&Q4 ended with positive EBITDAs and profit from operations and represents InterCure’s fourteenth & fifteenth consecutive quarter of profitability2.
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Expects to launch its first products in
Germany in the coming months and continues to closely watch developments surrounding Cannabis rescheduling in theU.S. - Expects sequential double digit quarterly growth during 2024.
Preliminary full year 2023 Financial Highlights and Milestones
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Annual revenue for 2023 is estimated at
NIS 351 million , and revenue for the H2 2023 is estimated atNIS 140 million . EBITDA for 2023 is estimated at overNIS 50 Million , and H2 2023’s EBITDA is estimated to reach overNIS 20 million and over14% of revenues. - Both Q3&Q4 2023 represents the fourteenth & fifteenth consecutive quarter of profitability for InterCure, with both Q3&Q4 showing a positive EBITDA and profit from operations.
- Expects to resume sequential quarterly growth during 2024.
- Expanded the Company's branded products portfolio, launching more than 40 new GMP SKUs during 2023.
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Expanding the Company's partnership strategy, through an exclusive partnership agreement with premier cannabis brand TYSON 2.0 in
Israel ,Australia ,United Kingdom ,Germany , and other EU Countries - Since October 7, 2023, war situation was declared by the Israeli government. As of this date, there is limited access to the Southern Israel Site, and parts of the site are being used by the Israel Defense Forces (the “IDF”), including, among others, the IDF’s medical corps.
- The Company is entitled to full compensation from the Israeli Governmental authorities for all direct and indirect damages suffered, as stated in the Company’s press releases issued on October 17, 2023 and February 13, 2024. To date, InterCure has already received tens of millions of shekels as partial advanced payments from the Israeli authorities.
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The Company has begun the process of restoring the Southern Israel Site. Intercure’s management and its consoles are working diligently with the Israeli authorities to obtain full compensation for all the direct and indirect damages caused by the terrorist attack and the war in
Gaza . -
Continued execution of the Company's global expansion plan. As recently announced, the Company plans to launch its first products in
Germany in the coming months, following the groundbreaking cannabis reform passed. -
Continued expansion of the Company's dedicated medical cannabis pharmacy chain to a of total 24 active locations as of the end of March 2024. as of October 2023, the Company holds
100% of Cannolam LTD including the full rights to Cookies™ international agreements, alongside Israel’s largest chain of dedicated medical cannabis pharmacies, Givol™.
The Company plans to file its annual report on form 20F, which will include its full financial results for the year ended December 31, 2023 by the end of April, 2024.
Alexander Rabinovitch, CEO of InterCure Noted: "Facing an unprecedentedly challenging year, InterCure has showcased remarkable resilience and sustained growth, achieving our fifteenth consecutive quarter of profitability. Our continued profit from operations highlights the dedication of our team and the strength of our leading platform. As pharmaceutical cannabis becomes the new global standard, we are encouraged by the FDA’s recent recommendations and the potential rescheduling of Cannabis in the US. Our established leadership, and commitment to global expansion, product portfolio enhancement, and delivering value to our patients and shareholders sets us on a path of continued growth and success."
InterCure is thankful to its managers and employees for their commitment and to its strategic partners in
About InterCure (dba Canndoc)
InterCure (dba Canndoc) (NASDAQ: INCR) (TASE: INCR) is the leading, profitable, and fastest growing cannabis company outside of
For more information, visit: https://www.intercure.co
Caution Regarding Financial Estimates
The financial estimates set forth above are based on an initial review of the Company’s operations for the year ended December 31, 2023 and are subject to change. The Company’s independent registered public accounting firm, Somekh Chaikin (member firm of KPMG International), has not audited, reviewed or performed any procedures with respect to the accompanying financial estimates and other data, and accordingly does not express an opinion or any other form of assurance with respect thereto. They should not be viewed as a substitute for audited financial statements prepared in accordance with generally accepted accounting principles and are not necessarily indicative of the Company’s results for any future period.
Forward-Looking Statements
This press release may contain forward-looking statements. Forward-looking statements may include, but are not limited to, the Company’s Q3 and Q4 2023 revenue, the success of its global expansion plans, the expected annualized revenue for 2023, its expansion strategy to major markets worldwide, statements relating to the security events in
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1 Adjusted EBITDA means EBITDA for the cannabis sector adjusted for changes in the fair value of inventory, share-based payment expense, impairment losses (and gains) on financial assets, non-controlling interest and other expenses. This is a non-IFRS financial measure and does not have a standardized meaning prescribed by IFRS, please see “Non-IFRS Measures” below. |
2 Adjusted EBITDA |
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InterCure Ltd.
Amos Cohen, Chief Financial Officer
amos@intercure.co
Source: InterCure Ltd.
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