Top Seller Of Pharmaceutical Cannabis Outside US Grew By Double-Digits, Focuses On Germany

InterCure Ltd. INCR INCR reported its financial and operating results for the six months ended June 30, 2024. The Israeli-based cannabis operator posted revenue of NIS 126 million ($34.58 million), compared to NIS 147 million in the second half of 2023. The company noted that the October 7th terror attack affected the company's revenues in the first half of 2024 due to damages to its southern facility located at Kibbutz Nir Oz.

“Yesterday, we announced the expansion of our strategic partnership with Cookies to the German market, the largest market in Europe, which is experiencing accelerated growth and becoming a key target market for Intercure," stated CEO Alexander Rabinovitch. "InterCure grew double-digit in the first half and presented profitable quarters, the 16th and 17th in a row. This consistent performance highlights our business model’s strength and commitment to leading the pharmaceutical cannabis market even in this challenging time. In the first half, we heavily invested in the restoration of the company’s main facility located at Kibbutz Nir Oz. The facility was damaged by the terrorist attack and is expected to gradually return to full capacity in the coming quarters, in accordance with receiving compensation from the authorities for the direct and indirect damages which the company is entitled to.”

Get Benzinga's exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. If you're serious about the business, you can't afford to miss out.

First Half 2024 Financial Highlights

• Adjusted EBITDA reached NIS 20.8 million compared to NIS 31.2 million in the second half of 2023.

• Gross profit amounted to NIS 40.4 million in line with NIS 40.4 million in the second half of 2023.
• Total loss was NIS 6,000 compared to income of NIS 3.8 million in the same period of 2023.
• At the end of the reporting period, on June 30, Intercure had NIS 370.8 million in assets, compared to NIS 414.5 million at the end of June 2023.
• The company's cash on hand was NIS 21 million, while it has an unused credit line of over NIS 22 million. InterCure expects to receive additional substantial advance payments from the Israeli authorities as part of the compensation it is entitled to due to damages caused to the Southern Facility.

Read Also: European Cannabis Companies Race To The Nasdaq: $1B In Tax Break On The Horizo

Recent Operational Milestones

• Continued expansion of company’s dedicated medical cannabis pharmacy chain to a total of 24 active locations as of today. As of October 2023, InterCure holds 100% of Cannolam LTD including the full rights to Cookies international agreements, alongside Israel's largest chain of dedicated medical cannabis pharmacies, Givol.
• Expanded its European footprint with new strategic agreements with Cookies. Enhanced branded product offerings with the most-recognized global cannabis brand and expects to launch Cookies Corners licensed pharmacies in Germany and UK, alongside differentiated online platforms with the official cookies retail experience.
• Plans to launch more than 30 new GMP SKUs during the second half of 2024 executing collaborations with Cookies, Binske, Organigram OGI and others.

InterCure reported that it expects double-digit growth throughout the second half of 2024 compared to the first half of 2024.

“Intercure is set for significant growth in the coming quarters and years in all territories, and to that end, we have executed strategic actions to strengthen the company’s high-quality cultivation and supply chain in Canada and Europe," Rabinovitch continued.

Price Action

InterCure shares were 2.47% higher at $2.28 per share on Friday afternoon.

Read Next:

• Medical Marijuana Regulated As Ibuprofen Is One Of The Biggest Breakthroughs Of Germany’s Cannabis Law

Photo: Courtesy of HTWE via Shutterstock