InterCure Reports Record FY 2021 Revenue Of $89M, Q4 Adjusted EBITDA Spikes 140% YoY

InterCure Ltd. INCR INCR INCR, which is doing business as Canndoc, has announced its estimated financial and operating results for the fourth quarter and year ended December 31, 2021.

Q4 Key Financial & Operating Highlights

• Record revenue of CA$33 million ($26.4 million), higher than preliminary results and three times greater than the fourth quarter of 2020 and representing sequential growth of 29%.
• Record adjusted EBITDA of CA$9 million, representing a 140% increase year-over-year, sequential growth of almost 50%, and adjusted EBITDA margin of 26%.
• Eighth consecutive quarter of high double-digit growth representing an estimated annualized run rate of over CA$130 million.
• Estimated net income of CA$1 million for 2021.
• Sixth consecutive quarter of positive cash flow from operations.
• Announced European expansion with international cannabis brand Cookies - opening first retail locations in Austria and the United Kingdom.
• The company surpassed one-ton medical cannabis products dispensed per month in the fourth quarter, representing approximately 30% market share of Israel’s medical cannabis.

Full Year 2021 Key Financial & Operating Highlights

• Record fiscal year 2021 revenue and adjusted EBITDA of CA$89 million and CA$23 million, representing an increase of 230% and 250% year-over-year, respectively.
• Adjusted EBITDA margin of 25% for the fiscal year 2021, up 1% from 2020.
• Cash at year-end of CA$89 million.
• Estimated net income of CA$5 million for 2021.
• Increased market share due to solid demand for Canndoc's branded products and expansion of the Company’s medical cannabis dispensing operations.
• Added 19 locations to its leading medical cannabis dedicated pharmacy chain, out of which 13 are actively dispensing medical cannabis.
• Announced the first major consolidation in the pharmaceutical, and medical cannabis space with the signing of an LOI to acquire multi-national licensed producer "Better."
• Solid international demand for InterCure’s GMP branded products is expected to boost global expansion as Israeli government eases regulation on exportation.
• Legislation of adult use cannabis and CBD products in Israel progresses as a new government sworn into office in June 2021.
• InterCure commenced trading on Nasdaq, CEO Alexander Rabinovitch purchased on the open market a total of 423,501 shares of the company’s common stock for a total investment in the company of CA$3.79 million per share.
• During the third quarter, InterCure received 5.2 million shares back from the sponsor of our SPAC transaction. According to the agreement the shares were subject to forfeiture from the SPAC sponsor based upon share price target criteria.

Post Q4 2021 Highlights

• Announced that it has signed a definitive agreement to acquire 100% of Better's shares.
• Announced international strategic partnership with Clever Leaves.
• Company expected to capitalize on the new CBD market following the Israeli Minister of Health's announcement that CBD will be removed from the Dangerous Drugs Act through strategic partnerships with Charlotte's Web.
• Signed definitive agreement with Altman Health, the leading Israeli wellness brand with distribution into
• Added three new medical cannabis dedicated pharmacies to the Company's chain, totaling 23 retail locations across Israel, out of which 15 are actively dispensing medical cannabis.

Management Commentary

“2021 was another successful year for InterCure as we continued to execute our profitable growth strategy while strengthening our brands, manufacturing, distribution, and consolidation leadership,” said InterCure CEO Alexander Rabinovitch. “Looking towards 2022, we are focused on executing our international expansion, including opening the first medical cannabis pharmacies in Austria and UK, entering the Australian medical cannabis market, and laying down the infrastructure for entering the US market in the mid-term as federal legalization advances.”

Photo: Courtesy of Sharon McCutcheon on Unsplash