In a release issued under the same headline earlier today, by
InterCure Ltd. (NASDAQ: INCR) (TSX: INCR.U) (TASE: INCR), please
note that multiple numbers were incorrect and have been updated.
The corrected release follows:
Eleventh consecutive quarter of sequential
profitable revenue growth
Annualized revenue run rate of $155 million
Adjusted EBITDA1 run rate of $34 million
Achieved Run Rate Net Profit of 12$ million
Strong balance sheet with $92 million cash
supporting future profitable growth
InterCure Ltd. (NASDAQ: INCR) (TSX: INCR.U) (TASE: INCR) (dba
Canndoc) ("InterCure" or the “Company”) is pleased to announce its
financial and operating results for the third quarter ended
September 30, 2022.
All amounts are expressed in New Israeli Shekels
(NIS) or Canadian dollars ($), 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 58% 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
|
14,040
|
|
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)
|
19,652
|
20,709
|
19,911
|
19,446
|
11,999
|
10,814
|
9,468
|
Adjusted EBITDA Margin
|
20%
|
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 onSeptember
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
|
19,651
|
|
|
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.
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.
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 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 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
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 InterCure’s 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 July 14,
2021, as amended August 3, 2021 and August 18, 2021. 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.
Due to participation in the upcoming November
conferences, the company will update on a later date for the
Q3 2022 result conference call.
- MJBizCon – Marijuana Business Conference & Cannabis
Expo
- InterCure’s management will be hosting investor meetings.
To schedule a one-on-one investor meeting with
InterCure's management team, or for any inquiries please contact
us:
- amos@intercure.co
- +972-58-666-8686
Contact:
InterCure Ltd.Amos Cohen,
Chief Financial OfficerAmos@intercure.co
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/65ea3332-105c-44d0-b685-b45b8f4eb87e
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