Eleventh consecutive quarter of sequential profitable revenue growth
Annualized revenue run rate of $155 million
Adjusted EBITDA1 run rate of $36 million
Achieved Run Rate Net Profit of 12$ million
Strong balance sheet with $93 million cash supporting future profitable growth
NEW YORK and TORONTO and HERZLIYA, Israel, Nov. 15, 2022 (GLOBE NEWSWIRE) — InterCure Ltd. (NASDAQ: INCR) (TSX: INCR.U) (TASE: INCR) (dba Canndoc) (“InterCure” or the “Company”) is pleased to announce its financial and operating results for the third quarter ended September 30, 2022.
All amounts are expressed in New Israeli Shekels (NIS) or Canadian dollars ($), unless otherwise noted.
Third Quarter 2022 Key Financial & Operating Highlights
- Record revenue of $39 million (NIS 101 million), which represent a 63% growth than the third quarter of 2021 and representing sequential growth of 6%.
- Eleventh consecutive quarter of growth representing an annualized run rate of over $155 million (Over NIS 402 million).
- Revenue growth expected to continue in Q4 2022.
- Adjusted EBITDA increased 85% year-over-year to $9 million, representing 22% of revenues.
- Solid demand for Canndoc’s branded products and expansion of the Company’s medical cannabis dispensing operations.
- Record of new product launches with more than 10 new GMP SKUs added to the company’s portfolio of products during the quarter.
- First company to comply with the new strict 109 import regulations of the Israel Medical Cannabis Agency, resuming importation of medical cannabis to Israel.
- Expansion of the Company’s medical cannabis dedicated pharmacy chain to a of total 25 locations as of the end of the third quarter.
- Continued scaling up production cultivation and production of the Southern facility as the largest and most advanced facility of its kind in the region.
- Driving forward with the execution of the company’s global expansion plan.
“I am proud of our team delivering our eleventh consecutive quarter of profitable growth with strong operating and financial performance,” said InterCure CEO Alexander Rabinovitch. “We continued to execute on our international expansion plans building our footprint organically and exploring strategic acquisitions in key markets, to meet the solid demand for our high-quality branded products. We expect 2022 to be another milestone year for InterCure, solidifying our leadership position in the pharmaceutical cannabis market.”
“Our third quarter results reflect our ability to deliver on our strategic initiatives, translating into continued profitable growth,” said InterCure CFO Amos Cohen. “In addition to delivering on strong financial results we also managed to maintain our profitability while executing expansion plan expansion in all key markets. We are very pleased with the progress and remain focused and committed to building our shareholders’ value and improving quality of life for patients and communities globally are continuing to see that same momentum carry into the fourth quarter.”
(1)Means EBITDA 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 (or income);
Key Q3 2022 Financial Highlights – Cannabis Sector
(In thousands NIS)
| Q3 2022 | Q3 2022 | Q3 2021 |
| Revenues | 100,572 | 61,695 |
| Gross Profit (1) | 44,074 | 24,682 |
| Adjusted EBITDA (2) | 22,188 | 11,999 |
| Q3-22 | Q2-22 | Q1-22 | Q4-21 | Q3-21 | Q2-21 | Q1-21 | ||||||||
| Revenues | 100,572 | 95,277 | 87,229 | 79,701 | 61,695 | 45,230 | 33,051 | |||||||
| Gross Profit (1) | 44,074 | 41,542 | 35,857 | 36,613 | 24,682 | 19,267 | 15,427 | |||||||
| GP Margin | 44 | % | 43 | % | 41 | % | 46 | % | 40 | % | 42 | % | 46 | % |
| Adjusted EBITDA(2) | 22,652 | 20,709 | 19,911 | 19,446 | 11,999 | 10,814 | 9,468 | |||||||
| Adjusted EBITDA(2) Margin | 22 | % | 21 | % | 22 | % | 24 | % | 19 | % | 24 | % | 28 | % |
(1) Gross profit before effect of fair value.
(2) EBITDA 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 (or income). This is a non-IFRS financial measure and does not have a standardized meaning prescribed by IFRS, please see “Non-IFRS Measures” below.
| For the 3-month ended on September 30 | |||||
| 2022 | 2021 | ||||
| Revenues | 100,572 | 61,695 | |||
| Gross profit before effect of fair value | 44,074 | 24,682 | |||
| Gross profit after effect of fair value | 46,213 | 22,056 | |||
| Research and development expenses | (120 | ) | (298 | ) | |
| General and administrative expenses | (13,979 | ) | (9,288 | ) | |
| Marketing and selling expenses | (16,774 | ) | (6,245 | ) | |
| Impairment gains and (losses) on financial assets through profit or loss | (54 | ) | 8 | ||
| Other income (expenses), net | 897 | (1,692 | ) | ||
| Consolidated operating profit | 16,183 | 4,541 | |||
| Comprehensive income | 8,308 | 540 | |||
| Interest / Financing expenses (income) net | 4,236 | 2,464 | |||
| Tax expenses | 3,639 | 1,537 | |||
| Depreciation and amortization | 2,719 | 1,684 | |||
| EBITDA | 18,903 | 6,225 | |||
| Share-based payment expenses | 3,731 | 1,464 | |||
| Other expenses (income(, net | (897 | ) | 1,692 | ||
| Impairment losses and (gains) on financial assets through profit and loss | 54 | (8 | ) | ||
| Fair value adjustment to inventory | (2,139 | ) | 2,626 | ||
| Adjusted EBITDA | 22,652 | 11,999 | |||
| Basic earnings (loss) per share | 0.16 | (0.04 | ) | ||
| Diluted earnings per share | 0.16 | (0.03 | ) | ||
Consolidated Financial Statements and Management’s Discussion and Analysis
The publication of InterCure’s audited financial statements and accompanying notes for the quarter ended September 30, 2022 and related management’s discussion and analysis of financial condition and results of operations (“MD&A”) and analysis of financial condition and results of operations (“MD&A”) are available under the Company’s profile on SEDAR.
