This Israeli Cannabis Operator Anticipates $95.4M In Revenue Despite Gaza Conflict

InterCure Ltd. INCR INCR, an Israeli cannabis company doing business as Canndoc, announced its preliminary results on Monday for the full year of 2023.

Preliminary H2 2023 Financial Highlights

• Revenue is estimated at NIS 140 million ($38.1 million).
• Adjusted EBITDA is estimated to reach over NIS 20 million ($5.44 million) and over 14% of revenues.
• Both Q3&Q4 ended with positive adjusted EBITDA and profit from operations.

Preliminary Full Year 2023 Financial Highlights

• Annual revenue for 2023 is estimated at NIS 351 million ($95.4 million).
• Adjusted EBITDA for 2023 is estimated at over NIS 50 million ($13.6 million).
• InterCure expects sequential double digit quarterly growth during 2024.

Overcoming External Challenges

The latter half of 2023 was notably impacted by the repercussions of the October 7 terrorist attack and subsequent attacks in Gaza, adversely affecting operations. Yet, InterCure has been proactive in securing full compensation from Israeli authorities for all direct and indirect damages incurred, receiving tens of millions of shekels in partial advances to date.

The H2 2023 adjusted EBITDA is projected at over NIS 20 million ($5.44 million), aligning with the company’s enduring profitability streak—now marking the fifteenth consecutive quarter of profit from operations.

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Strategic Growth And Expansion

InterCure's continued focus on expansion and innovation is evident in its strategic partnerships and product diversification, including an exclusive deal with TYSON 2.0 and the launch of over 40 new GMP SKUs in 2023. The anticipation of entering the German market and expansion of its dedicated medical cannabis pharmacy chain underscores a proactive approach towards global growth and market leadership.

CEO Outlook

“Facing an unprecedentedly challenging year, InterCure has showcased remarkable resilience and sustained growth, achieving our fifteenth consecutive quarter of profitability. Our continued profit from operations highlights the dedication of our team and the strength of our leading platform. As pharmaceutical cannabis becomes the new global standard, we are encouraged by the FDA's recent recommendations and the potential rescheduling of Cannabis in the US," stated Alexander Rabinovitch, CEO of InterCure. "Our established leadership, and commitment to global expansion, product portfolio enhancement, and delivering value to our patients and shareholders sets us on a path of continued growth and success.”

InterCure plans to file its annual report on form 20F by the end of April, which will include its full financial results for the year ended December 31, 2023.

INCR Price Action
INCR's shares were trading 0.74% lower at $2.69 per share at the time of this writing around 1:30 PM ET Monday.

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