InterCure Announces First Half of 2024 Results: Revenue of NIS 126 million and Adjusted EBITDA of NIS 21 million
-- Revenues during the first half of 2024 reached NIS 126 million, alongside
an Adjusted EBITDA1of NIS 21 million (Approximately 17% of revenues).
-- Both quarters (Q1 and Q2 of 2024) ended with positive EBITDAs and profit
from operations and represents InterCure's 16th and 17th consecutive
quarter of profitability2.
-- Revenues for the first half of 2024 were affected by damages caused by
the terrorist attack on October 7, 2023, and the war in Gaza.
-- InterCure is entitled to full compensation from the Israeli authorities
for all direct and indirect damages caused to its Southern Facility
located at Kibbutz Nir Oz. To date, InterCure has already received tens
of millions of NIS as partial advance payments from the Israeli
authorities.
-- Announced Expansion of its strategic partnership with Cookies$(TM)$ to
Germany and expects to launch first Cookies products in Germany in the
fourth quarter of 2024.
-- Restoring the Southern Facility continues in accordance with receiving
advance payments from the Israeli authorities.
-- Expects double digit growth throughout the second half of 2024 (compared
to first half of 2024) due to expected launches in German and UK markets.
NEW YORK and HERZLIYA, Israel, Aug. 29, 2024 (GLOBE NEWSWIRE) -- InterCure Ltd. $(INCR)$ (TASE: INCR) ("InterCure" or the "Company") is pleased to announce its financial and operating results for the six months ended June 30, 2024. All amounts are expressed in New Israeli Shekels $(NIS.AU)$, unless otherwise noted.
First Half 2024 Financial Highlights and Milestones
-- Revenue was NIS 126 million, and the adjusted EBITDA for the six months
ending June 30, 2024 was NIS 21 million, approximately 17% of revenues.
Compared to the second half of 2023 (which was only partly affected by
the terrorist attack on October 7, 2023 and the war in Gaza) with NIS 147
million of revenue and NIS 31 million of adjusted EBITDA.
-- The October 7th terror attack effected the Company's revenues in first
half of 2024 due to damages to its southern facility located at Kibbutz
Nir Oz (the "Southern Facility").
-- The Company's operating profit was NIS 11 million.
-- Both quarters (Q1 and Q2 of 2024) represents the 16th and 17th
consecutive quarters of profitability for InterCure, with both quarters
showing positive Adjusted EBITDA and profit from operations.
-- Continued expansion of the Company's dedicated medical cannabis pharmacy
chain to a total of 24 active locations as of today. As of October 2023,
the Company holds 100% of Cannolam LTD including the full rights to
Cookies(TM) international agreements, alongside Israel's largest chain of
dedicated medical cannabis pharmacies, Givol(TM).
-- Since October 7, 2023, war situation was declared by the Israeli
government. As of this date, there is limited access to the Company's
Southern Facility.
-- According to Israeli Law, due to the location of the Company's Southern
Facility, the Company is entitled to full compensation for all the direct
and indirect damages caused to the Southern Facility by the terrorist
attack and the war in Gaza.
-- Restoring the Southern Facility continues with accordance of receiving
advance payments from the Israeli authorities.
-- To date, the Company has received tens of millions of NIS as advance
payments from the Israeli authorities in relation to such compensation
and expects to receive additional substantial advance payments to support
the Southern Facility restoration.
-- The Company's cash on hand was NIS 21 million while the Company has
unused credit line of over NIS 22 million and it is expecting to receive
additional substantial advance payments from the Israeli authorities as
part the compensation it is entitled to due to damages caused to the
Southern Facility.
-- Expands its European footprint with new strategic agreements with
Cookies(TM). Enhancing branded product offerings with the most-recognized
global cannabis brand and expects to launch Cookies Corners licensed
pharmacies in Germany and UK, alongside differentiated online platforms
with the official cookies retail experience.
-- Continued execution of the Company's global expansion plan. Plans to
launch more than 30 new GMP SKUs during the second half of 2024 executing
collaborations with Cookies, Binske, Organigram and others.
-- Expects double digit growth throughout the second half of 2024 compared
to first half of 2024.
Alexander Rabinovitch, CEO of InterCure noted: "Yesterday, we announced the expansion of our strategic partnership with Cookies to the German market, the largest market in Europe, which is experiencing accelerated growth and becoming a key target market for Intercure. Intercure grew double-digit in the first half and presented profitable quarters, the 16th and 17th in a row. This consistent performance highlights our business model's strength and commitment to leading the pharmaceutical cannabis market even in this challenging time. In the first half, we heavily invested in the restoration of the company's main facility located at Kibbutz Nir Oz. The facility was damaged by the terrorist attack and is expected to gradually return to full capacity in the coming quarters, in accordance with receiving compensation from the authorities for the direct and indirect damages which the company is entitle to."
Alexander Rabinovitch continued: "Intercure is set for a significant growth in the coming quarters and years in all territories, and to that end, we have executed strategic actions to strengthen the company's high quality cultivation and supply chain in Canada and Europe. Entering the German market with great impact by the company's leading product lines, including Cookies, the globally most recognized cannabis brand , is a significant step in our commitment to provide high-quality, pharma-grade cannabis to patient communities and creating value to our shareholders."
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.
Key Half Year Financial Highlights -- Cannabis Sector
H1-24 H2-23 H1-23 H2-22 H1-22 H2-21 H1-21
------- ------- ------- ------- ------- ------- --------
Revenues 125,733 146,939 208,614 206,178 182,506 141,396 78,281
Gross
Profit(1) 40,442 40,394 67,945 81,558 77,399 61,295 34,694
------- ------- ------- ------- ------- ------- ------
GP Margin 32% 27% 33% 40% 42% 43% 44%
------- ------- ------- ------- ------- ------- ------
Adjusted
EBITDA(2) 20,829 31,201 29,669 40,714 43,411 35,132 21,765
------- ------- ------- ------- ------- ------- ------
Adjusted
EBITDA(2)
Margin 17% 21% 14% 20% 24% 25% 28%
------- ------- ------- ------- ------- ------- ------
Notes
(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.
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 $(GMP.UK)$ 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
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), which is incorporated by reference to this press release, is available in InterCure's MD&A included in our Annual Report on Form 20-F under the heading "Results of Operations", available under the Company's profile on EDGAR at www.sec.gov.
Forward-Looking Statements
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