IM Cannabis' Q3 Earnings: Unpacking Revenue And Profit Shifts

IM Cannabis Corp IMCC, a Canadian medical cannabis provider, released its Q3 2023 financial figures on Monday, disclosing revenue of CA$12.4 million ($8.99 million) down by 13% compared to the third quarter of 2022.

Q3 2023 Financial Highlights

• Revenue saw a 13% decrease, totaling CA$12.4 million.
• Net Loss from Continuing Operations was CA$2.1 million, compared to CA$4.5 million in the third quarter of 2022.
• Adjusted EBITDA loss in the third quarter of 2023 was CA$1.3 million, a decrease of 65% compared to the third quarter of 2022.
• Gross profit was CA$2.6 million, compared to CA$2 million in the third quarter of 2022, an increase of 30%.
• Operating loss in the third quarter of 2023 was CA$2.3 million, compared to CA$5.5 million in the third quarter of 2022, a decrease of 58%.

Despite a challenging economic backdrop marked by currency fluctuations, the IM Cannabis (IMC) showcased resilience with a 10% gross margin increase and 30% rise in gross profit.

Management Commentary

“As in the previous quarters, in Q3 2023, we continued towards our goal of sustainable profitability,” said Oren Shuster, IMC’s CEO, noting the company’s efforts to adjust its portfolio and focus on high-end products in the Israeli market.

Itay Vago, CFO, underscored the impact of currency volatility but emphasized ongoing operational cost reductions.

Operational Developments and Market Shifts

This period witnessed the launch of high THC strains and cost-saving measures like outsourcing delivery services, projected to save CA$300,000 annually.

However, geopolitical tensions with the recent Israel-Hamas conflict may cast future uncertainties on the market.

IMCC Price Action

IMCC's shares were trading 1.03% higher at $0.44 per share at the time of this writing Tuesday afternoon.