The company generated positive cash from operations in the second quarter.
Israeli medical cannabis company InterCure Ltd. (NASDAQ: INCR) (TASE: INCR) announced its financial results for the first half of 2023 ending June 30, reporting record revenue of C$75 million for the first half and C$36 million for the second quarter, representing a year-over-year growth of 14% and 8%, respectively.
This marks the “seventh consecutive half-year of growth” for the company, which runs a slew of dispensaries in the Holy Land, including Berner’s Cookies dispensaries in Israel and Austria. Additionally, the company reported a gross profit of C$24 million for the first half and C$12 million for the second quarter, and generated positive cash from operations in the second quarter but negative cash in the first half worth C$6 million. Adjusted EBITDA came out to C$11 million, representing 14% of revenue and $5 million for the second quarter.
In a statement, InterCure’s CEO, Alexander Rabinovitch, expressed pride in the company’s performance during the period.
“I am proud of our team ability to execute despite some challenging market conditions when big players are exiting the space,” he said.
He also mentioned that they are encouraged by the new regulations in Israel and Germany and are keeping an eye on the U.S. Department of Health and Human Services’ evaluation supporting cannabis to be classified as a Schedule 3 drug by the DEA.
InterCure said it had solid demand for its Canndoc branded products, launching more than 20 new products and adding 18 new strains of cannabis to its cultivation operation. The company also signed a collaboration agreement with Mike Tyson’s cannabis brand, TYSON 2.0, granting them exclusive rights to cultivate, manufacture, sell, market, and distribute TYSON 2.0 products in certain territories.
InterCure voluntarily delisted its shares from the Toronto Stock Exchange as it “did not offer substantial benefits,” but its shares continue to be traded on Nasdaq and the Tel Aviv Stock Exchange.
The company noted that the new reform in Israeli medical cannabis regulations announced earlier this month is expected to increase the number of patients and demand for medical cannabis products in Israel after a period of stagnation.
A lawsuit against InterCure was dismissed during the period and the parties agreed on a binding arbitration process. The company plans to launch its GMP products in the U.K. and Germany in the fourth quarter of 2023 and the first quarter of 2024.
Cash and restricted cash at the end of the period was over C$42 million, with financial assets of C$25 million.
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