InterCure Ltd. (NASDAQ: INCR) (TSX: INCR.U) (TASE: INCR)
("InterCure" or the “Company”) is pleased to announce its financial
results for the second quarter of 2022 and is pleased to provide
shareholders with a business update. All amounts are expressed in
Canadian dollars ($)iii or New Israeli Shekels (NIS), unless
otherwise noted.
Second Quarter 2022 and
Recent Financial & Operating Highlights
- Record revenue of approximately $37
million (NIS 95 million), more than double the revenues of the
second quarter of 2021 and representing sequential growth of over
9%.
- Tenth consecutive quarter of high
growth representing an annualized run rate of $150 million (NIS 381
million).
- Adjusted EBITDA increased 90%
year-over-year to $9 million, representing 23% of revenues and 4%
sequential growth.
- Gross profitiv increased over 115%
year-over-year and 16% sequentially to over $16 million.
- Net income of $6 million in the
second quarter, representing over 160% growth
year-over-year.
- Eighth consecutive quarter of
positive cash flow from operations, exited the quarter with $96
million in cash.
- Company expects continued increases
in revenues during the third quarter of 2022 and throughout the
year.
- Continued market share growth
during the quarter due to solid demand for Canndoc's branded
products and expansion of the Company’s medical cannabis dispensing
operations.
- Successful opening of the first
flagship Cookies retail location in Austria, located in the center
of Vienna.
- Continued expansion of the
Company's medical cannabis dedicated pharmacy chain with the grand
opening of InterCure's flagship Cookies branded pharmacy in Be'er
Sheva, the largest city in Israel's southern region. Additionally,
the Company added a new pharmacy located in the northern city of
Nahariya.
- During the quarter, the Company's
leading medical cannabis dedicated pharmacy chain included24retail
locations across Israel, of which16were actively dispensing medical
cannabis.
- During the quarter, the Company
scaled up its cultivation and production facilities by enlarging
the Southern facility's post-harvest, nursery and grow houses
further solidifying it as the largest and most advanced facility of
its kind in the region.
- The cultivation operation
successfully added and produced 12 new highly demanded strains into
its growth cycles. Including high THC Cookies cultivars. Post
quarter, the Company successfully launched four new premium branded
products, cultivated at the Southern Facility.
First
Half 2022 Financial
Highlights
- Record revenue of approximately $72
million (NIS 182 million), more than 130% than the revenues of the
first half of 2021.
- Gross profit increased over 120%
year-over-year to over $30 million (NIS 77 million).
- Adjusted EBITDA for H1 2022
increased 100% year-over-year to $17 million (NIS 43 million).
- Record profits before taxes for the
first half of almost $16 million (over NIS 41 million) representing
188% growth year-over-year.
InterCure’s Chief Executive Officer,
Alexander Rabinovitch, commented, "We are proud to
deliver our tenth consecutive quarter of profitable growth,
solidifying our operational excellency and leading position. We
remain focused on developing and launching the highest quality
pharmaceutical grade medical cannabis products as our target
markets are evolving at a rapid pace. During the second quarter we
have successfully ramped up our upstream and downstream operations
and executed our global expansion to meet the solid demand for our
high-quality branded products. We expect this growth to continue,
while we remain focused and committed to expand our unique
platform, building shareholder value and improving quality of life
for patient communities.”
InterCure's Chief Financial Officer,
Amos Cohen, commented, "Our teams delivered
another strong quarter across all sectors, focusing on execution of
our profitable growth strategy and fiscal discipline. With a strong
balance sheet and over $96 million cash on hand, we are well
positioned ahead of the consolidation process.”
A photo accompanying this announcement is
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/c030c9c8-99b3-4829-93e0-83c349c48106
Key
Q2 2022
Financial Highlights – Cannabis
Sector
(In thousands $)
First Half
|
H1-21
|
H1-22
|
|
Revenues
|
30,783
|
71,768
|
133
|
%
|
Gross Profit
|
13,643
|
30,436
|
123
|
%
|
Adjusted EBITDA
|
8,559
|
17,071
|
99
|
%
|
Second Quarter
|
Q2-21
|
Q2-22
|
|
Revenues
|
17,786
|
37,466
|
119
|
%
|
Gross Profit
|
7,577
|
16,336
|
116
|
%
|
Adjusted EBITDA
|
4,601
|
8,696
|
89
|
%
|
|
Q2-20
|
Q3-20
|
Q4-20
|
Q1-21
|
Q2-21
|
Q3-21
|
Q4-21
|
Q1-22
|
Q2-22
|
Revenues
|
4,398
|
|
8,847
|
|
10,654
|
|
12,997
|
|
17,786
|
|
24,261
|
|
31,341
|
|
34,302
|
|
37,466
|
|
Gross Profit
|
1,893
|
|
4,229
|
|
5,230
|
|
6,066
|
|
7,576
|
|
9,706
|
|
14,398
|
|
14,100
|
|
16,336
|
|
GP Margin
|
43
|
%
|
48
|
%
|
49
|
%
|
47
|
%
|
43
|
%
|
40
|
%
|
46
|
%
|
41
|
%
|
44
|
%
|
Adjusted EBITDA
|
619
|
|
2,739
|
|
3,409
|
|
3,958
|
|
4,601
|
|
5,521
|
|
8,294
|
|
8,375
|
|
8,696
|
|
Adjusted EBITDA Margin
|
14
|
%
|
31
|
%
|
32
|
%
|
30
|
%
|
26
|
%
|
23
|
%
|
26
|
%
|
24
|
%
|
23
|
%
|
Conference
Call
InterCure executives will host a live conference
call and audio webcast to discuss these results on Tuesday, August
16, 2022, at 8:30 am Eastern Time, details of which are provided
below.
To access the conference call, participants can
register through the following URL:
https://register.vevent.com/register/BI5e6af40482ac4b7bb3024b6aad2c8185.Once
registered participants will receive dials and a unique pin which
will allow them to access the call.
A replay of the conference call will be
available through the following Webcast link:
https://edge.media-server.com/mmc/p/gm9sadgn, or through the
‘Events and Presentations’ section of the InterCure website at
http://www.intercure.co.
Consolidated Financial Statements and
Management's Discussion and Analysis
The publication of InterCure's financial
statements and accompanying notes for the quarter ended
June 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.
About
InterCure (dba Canndoc)
InterCure (dba Canndoc) (NASDAQ: INCR) (TSX:
INCR.U) (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 international 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: http://www.intercure.co.
Non-IFRS Measures
This press release makes reference to certain
non-IFRS financial measures. Adjusted EBITDA, as defined by
InterCure, means earnings before interest, income taxes,
depreciation, and amortization, 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 measure is not a recognized measure
under IFRS, does not have a standardized meaning prescribed by IFRS
and is therefore unlikely to be comparable to similar measures
presented by other companies. InterCure’s method of calculating
this measure may differ from methods used by other entities and
accordingly, this measure may not be comparable to similarly titled
measured used by other entities or in other jurisdictions.
InterCure uses this measure because it believes it provides useful
information to both management and investors with respect to the
operating and financial performance of the company. A
reconciliation of Adjusted EBITDA to an IFRS measure (revenue) is
provided below:
Adjusted EBITDA Reconciliation (consolidated
base in thousands $)
|
PERIOD
|
|
Q2-21
|
Q2-22
|
Comprehensive income
|
2,335
|
|
6,085
|
|
Interest / Financing cost
|
158
|
|
(1,292
|
)
|
Tax expenses (income)
|
998
|
|
2,256
|
|
Depreciation and amortization
|
493
|
|
895
|
|
EBITDA
|
3,984
|
|
7,944
|
|
Share-based payment expenses
|
713
|
|
625
|
|
Other expenses (income), net
|
(114
|
)
|
365
|
|
Impairment losses and (gains) on financial assets through
|
(64
|
)
|
29
|
|
Decrease (increase) Fair value adjustment to inventory
|
(267
|
)
|
(819
|
)
|
Adjusted EBITDA
|
4,252
|
|
8,144
|
|
Forward-Looking Statements
This press release may contain forward-looking
statements. Forward-looking statements may include, but are not
limited to, statements relating to InterCure’s objectives plans and
strategies, 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 future revenue growth and profitability,
the expected operations, financial results business strategy,
competitive strengths, expansion strategy to major markets
worldwide, the legalization of CBD in Israel and its impacts on the
Company, the impact of the COVID-19 pandemic and the war in
Ukraine. 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 Israeli, U.S. and Canadian 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 the Company Annual
Information Form dated April 5, 2022 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 April 28, 2022. 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.
Contact:
InterCure Ltd.Amos Cohen,
Chief Financial OfficerAmos@intercure.co
_______________i All amounts are expressed in Canadian dollars
($)ii 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” belowiii CAD conversation rate from NIS as of
08.12.2022iv Gross profit before effect of fair value
Intercure (TSX:INCR.U)
Historical Stock Chart
From May 2024 to Jul 2024
Intercure (TSX:INCR.U)
Historical Stock Chart
From Jul 2023 to Jul 2024