InterCure Announces Preliminary Estimated 2023 Revenue of NIS 351 million and EBITDA of over NIS 50 million
April 01 2024 - 9:09AM
Business Wire
- 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
over 14% of revenues.
- Both Q3&Q4 ended with positive EBITDAs and profit from
operations and represents InterCure’s fourteenth & fifteenth
consecutive quarter of profitability2.
- Expects to launch its first products in Germany in the coming
months and continues to closely watch developments surrounding
Cannabis rescheduling in the U.S.
- Expects sequential double digit quarterly growth during
2024.
InterCure Ltd. (NASDAQ: INCR) (TASE: INCR)
("InterCure" or the “Company”) today announced
preliminary results for the full year of 2023. All amounts are
expressed in New Israeli Shekels (NIS), unless otherwise noted.
Preliminary full year 2023 Financial Highlights and
Milestones
- Annual revenue for 2023 is estimated at NIS 351 million, and
revenue for the H2 2023 is estimated at NIS 140 million. EBITDA for
2023 is estimated at over NIS 50 Million, and H2 2023’s EBITDA is
estimated to reach over NIS 20 million and over 14% 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.
- 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.
- 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 Israel and worldwide
who stand with us during this time of war.
About InterCure (dba Canndoc)
InterCure (dba Canndoc) (NASDAQ: INCR) (TASE: INCR) is the
leading, profitable, and fastest growing cannabis company outside
of North America. Canndoc, a wholly owned subsidiary of InterCure,
is Israel’s largest licensed cannabis producer and one of the first
to offer Good Manufacturing Practices (GMP) certified and
pharmaceutical-grade medical cannabis products. InterCure leverages
its market leading distribution network, best in class
international partnerships and a high-margin vertically integrated
"seed-to-sale" model to lead the fastest growing cannabis global
market outside of North America.
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 Israel, as well as statements, other than
historical facts, that address activities, events or developments
that InterCure intends, expects, projects, believes or anticipates
will or may occur in the future. These statements are often
characterized by terminology such as “believes,” “hopes,” “may,”
“anticipates,” “should,” “intends,” “plans,” “will,” “expects,”
“estimates,” “projects,” “positioned,” “strategy” and similar
expressions and are based on assumptions and assessments made in
light of management’s experience and perception of historical
trends, current conditions, expected future developments and other
factors believed to be appropriate. Forward-looking statements are
not guarantees of future performance and are subject to risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied in such statements. Many factors
could cause InterCure’s actual activities or results to differ
materially from the activities and results anticipated in
forward-looking statements, including, but not limited to, the
following: the Company’s success of its global expansion plans, its
continued growth, the expected operations, financial results
business strategy, competitive strengths, goals and expansion and
growth plans, expansion strategy to major markets worldwide, the
impact of the COVID-19 pandemic, the impact of the war in Israel
and the war in Ukraine and the conditions of the markets generally.
Forward-looking information is based on a number of assumptions and
is subject to a number of risks and uncertainties, many of which
are beyond InterCure’s control, which could cause actual results
and events to differ materially from those that are disclosed in or
implied by such forward-looking information. Such risks and
uncertainties include, but are not limited to: changes in general
economic, business and political conditions, changes in applicable
laws, the U.S. regulatory landscapes and enforcement related to
cannabis, changes in public opinion and perception of the cannabis
industry, reliance on the expertise and judgment of senior
management, as well as the factors discussed under the heading
“Risk Factors” in InterCure’s Annual Information Form dated March
31, 2023, which is available on SEDAR at www.sedar.com, and under
the heading “Risk Factors” and “Cautionary Note Regarding
Forward-Looking Statements” in the registration statement on Form
20-F, filed with the Securities Exchange Commission on May 1, 2023.
InterCure undertakes no obligation to update such forward-looking
information, whether as a result of new information, future events
or otherwise, except as expressly required by applicable law.
_______________________________
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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version on businesswire.com: https://www.businesswire.com/news/home/20240401022823/en/
InterCure Ltd. Amos Cohen, Chief Financial Officer
amos@intercure.co
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