IM Cannabis Expects Q2 Revenue At $11-12M, Completes State-Of-The-Art Logistics Center In Germany

Multi-country medical and recreational cannabis operator IM Cannabis Corp. IMCC IMCC provided its preliminary second-quarter revenue projections on Friday, as well as a third-quarter outlook and update on its new state-of-the-art logistics center in Germany.

The cannabis company projected its net revenue for the quarter to be in the range of $11 million to $12 million, representing a 30% sequential growth. 

IM noted that the revenue was affected by shipment delays to Germany that made up for almost the entire difference between real and projected revenue in the quarter. The delays were caused by a lack of available products from Adjupharm’s main European supply partner.

The company stressed that it is resolving these issues via diversification of its supply to Germany through new import agreements with Canadian cannabis companies.

Third-Quarter Outlook 

IM projects notable revenue improvement in the third quarter based on the following expectations:

• Improved sales of medical cannabis by Focus Medical in Israel, via current supply agreements with Israeli pharmacies;
• The inclusion of a full quarter of revenue from recently acquired of Panaxia-to-the-Home's operations;
• The consolidation of a full quarter of revenue from the company’s recent purchase of MYM Nutraceuticals;
• The continued development of Trichome JWC Acquisition Corp. with its recent rollout of Wagners adult-use brand;
• Resumed growth in Germany through new contracts.

Logistics Centre In Germany 

IMC further revealed it has completed its new, state-of-the-art logistics center in Germany, which should enable the company’s EU-GMP subsidiary Adjupharm GmbH to run all parts of its supply chain, such as the repackaging of bulk cannabis.

The cannabis operator is confident that the logistics center will boost Adjupharm’s capacities “as a focal point for IMC's European strategy.”  

With the finalization of the logistics center, IMC has now doubled its footprint in Germany to around 80,000 sq. ft., and boosted its storage capacity to seven tons of cannabis.

"While we experienced some operational challenges in the second quarter in Germany, we have taken measures to promptly address these,” Oren Shuster, IMC CEO said. "We are confident in our strategy, our assets and our team and believe that our results for the second half of 2021 will demonstrate this. As we move through the rest of the year, we will benefit from the Panaxia and MYM acquisitions, a return to growth in Germany with new supply now secured, increased cannabis sales in Israel through the fulfillment of Focus Medical's existing supply agreements and continued growth at Trichome as new brands gain traction."

Price Action 

IMC’s shares were trading 0.81% lower at $4.87 per share at the time of writing Friday morning.

Photo: Courtesy of Daniel Norin on Unsplash