InterCure Reports Record Breaking Second Quarter Financial Results


Ryan Allway

August 15th, 2022

News, Top News


Record revenue of over $37 millioni in the second quarter of 2022

Representing an annual run rate of $150 million

Adjusted EBITDAii for Q2 increased 90% YoY to $million

Net income of $6 million for the Q2 of 2022 compared to $2 million in Q2 of 2021

Tenth consecutive quarter of profitable growth

Eighth consecutive quarter of positive cash flow from operations

$96 million cash on hand

Revenue growth expected to continue in the third quarter and throughout 2022

 

 

NEW YORK and TORONTO and HERZLIYA, Israel, Aug. 15, 2022 (GLOBE NEWSWIRE) — 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.”

 

Rapid Revenue and EBITDA Growth By half year CAD millions
Rapid Revenue and EBITDA Growth By half year CAD millions

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 Officer
[email protected]

_______________
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” below
iii CAD conversation rate from NIS as of 08.12.2022
iv
 Gross profit before effect of fair value

 

 

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.


Network Partners

Follow Us on Social Media

About CFN Media Group

CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.

Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.

Copyright © Accelerize Inc. · All Rights Reserved · Privacy Policy · Legal Disclaimer

loading