Israeli Cannabis Co. Intercure Posts Record Q3 Revenue Of CA$25M, Dispenses One Ton Of GMP Medical Cannabis In Oct.

Israeli cannabis company InterCure Ltd. INCR INCR INCR, which does business as Canndoc, released its third-quarter financial results Monday revealing all-time record quarterly revenue of CA$25 million ($19.97 million), three times greater than Q3 2020.

Q3 Financial Highlights

• Annualized revenue run rate of CA$100 million;
• Normalized gross margin reached approximately 45% compared to 43% in the second quarter of 2021, due to first steps in implementing InterCure’s vertically integrated model;
• EBITDA for the third quarter of the Company’s cannabis sector was CA$6 million;
• Generated CA$4 million cash flow from operations. Fifth consecutive quarter of positive operating cash flow.
• $85 million in cash as of September 30, 2021.

Recent Operational Milestones 

• Added three pharmacies from the acquisition of the Cannomed assets, two of which are licensed to dispense medical cannabis.
• Brought the total retail spots to 20 pharmacies in prime and strategic locations across Israel, 14 of which are licensed to dispense medical cannabis.
• Additionally, in October the company reached a record of one ton of GMP medical cannabis products dispensed. This represents approximately 30% market share of Israel’s medical cannabis.
• During the quarter, InterCure's CEO purchased over 420,000 shares of the company’s stock on the open market, valued at over $3.7 million.
• The first company to meet the new importation requirements set by the Israeli Medical Cannabis Agency, known as the '109 reg.', resumed importation from the company's strategic partners, successfully landed and released shipments from Tilray TLRY, Organigram OGI and Fotmer Life Sciences.

Commenced trading on NASDAQ in September under the symbol INCR. “During the quarter we continue to execute our profitable growth strategy establishing our leadership position, achieving new firsts and new records,” InterCure’s CEO, Alexander Rabinovitch stated. “These include, 7 consecutive quarters of high double-digit growth and improved profitability, five consecutive quarters with positive cash flow, crossing the one-ton mark in GMP medical cannabis products dispensed monthly, with over 70,000 patients served, and achieving an annualized revenues run rate of $100 million, increased gross profits and adjusted EBITDA run rate of $23 million. We expect growth to continue in the fourth quarter and through 2022 as we will continue focusing on executing our profitable growth strategy building long and short-term shareholder value.”

Price Action

Intercure’s shares traded 3.38% lower at $8.01 per share during Tuesday’s pre-market session. 

Photo: Courtesy of Roberto Valdivia on Unsplash