Canndoc Reports Record Revenue Amid Cannabis Market Turmoil

InterCure Ltd. INCR INCR, which is doing business as Canndoc, reported its financial and operating results on Thursday for the three and six months ended June 30, 2023,

"The first half of 2023 is another solid performance for InterCure, with year-over-year revenue growing 14% and an adjusted EBITDA margin of 14%," InterCure CEO Alexander Rabinovitch said. "I am proud of our team's ability to execute despite some challenging market conditions when big players are exiting the space."

1H 2023 Financial Highlights

• Revenue totaled CA$75 million ($55.4 million), representing a year-over-year growth of 14%.
• Gross profit was CA$24 million or 33% of revenue, compared to CA$ 29.5 million in the prior year's period or 42% of the revenue.
• Operating profit was CA$4.2 million, down from CA$13.5 million in the same period of 2022.
• Adjusted EBITDA came in positive at CA$8.7 million, down from a CA$14.4 million adjusted EBITDA gain in the corresponding period of last year.
• Adjusted EBITDA margin was 14%, compared to 24% in the same period of 2022.
• As of June 30, the company had CA$299.67 million in total assets and CA$299.6 million in total liabilities and equity.

Q2 2023 Financial Highlights

• Revenue totaled CA$36 million, representing an 8% year-over-year growth.
• Gross profit was CA$12 million or 32% of revenue.
• Seventh consecutive half-year growth representing an annualized revenue run rate of CA$149 million.
• CA$ 13 million in cash from operations.

What's Next

"We continue to optimize our operations for continued growth supported by our leading position. We are encouraged by the new regulations in Israel and Germany as pharmaceutical cannabis becoming a world standard across Europe and many other territories," Rabinovitch continued, "We are also keeping an open eye on the U.S. Department of Health and Human Services scientific and medical evaluation, supporting cannabis to be classified as a Schedule III drug by the DEA and the opportunities it may generate to InterCure."

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INCR Price Action

InterCure's shares traded 1.86% higher at $1.64 per share during the pre-market session on Friday morning.

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• InterCure Stock Trading Lower On Q1 Revenue Growth Of 22%, Here Are The Details
• InterCure Teams Up With TYSON 2.0 In Israel, Australia, United Kingdom, Germany And Other EU Countries

Photo: Courtesy of Emilio Takas on Unsplash