IM Cannabis FY22 Revenue From Continuing Operations Grows 60% To $54.3M

IM Cannabis Corp. IMCC IMCC FY 2022 revenues from continuing operations were CA$54.3 million, an increase of 60% compared to CA$34.1 million in 2021.

Q4 Financial Highlights

• Revenues from continuing operations for Q4 2022 were CA$14.5 million, compared to CA$9.9 million in Q4 2021, an increase of 46%.

• Gross profit from continuing operations for Q4 2022 was CA$2.6 million, compared to CA$0.98 million in Q4 2021, an increase of 165%.

• Gross Margin in Q4 2022 was 19%, compared to 11% in Q4 2021.

• Adjusted EBITDA loss from continuing operations in Q4 2022 was CA$1.9 million, compared to an adjusted EBITDA loss of CA$9.0 million in Q4 2021.

• Net loss from continuing operations in Q4 2022 was CA$9.7 million, compared to CA$8.4 million in Q4 2021.

• Net loss from discontinued operations in Q4 2022 was CA$23.8 million, compared to CA$4.1 million in Q4 2021.

Full Year 2022 Financial Highlights

• Gross profit from continuing operations for the year ended December 31, 2022 was CA$9.2 million, compared to CA$6.3 million in 2021, an increase of 46%.

• Gross margin from continuing operations in 2022 was 21%, compared to 25% in 2021.

• Adjusted EBITDA loss from continuing operations in 2022 was CA$11.5 million, compared to an adjusted EBITDA loss of CA$14.3 million in 2021.

• Net loss from continuing operations in 2022 was CA$24.9 million, compared to CA$0.7 million in 2021.

• Net loss from discontinued operations in 2022 was CA$166.4 million, compared to CA$17.9 million in 2021.

• Cash and cash equivalents as of December 31, 2022 were CA$2.4 million, compared with CA$13.9 million in December 31, 2021.

• Total assets as of December 31, 2022 were CA$60.7 million, compared to CA$287.4 million in December 31, 2021, a decrease of 79%. The decrease is mainly attributed to a goodwill impairment of CA$107.8 million relating to Trichome acquisition and the deconsolidation of Trichome groups assets of CA$54.7 million.

• Liabilities as of December 31, 2022 were CA$36.9 million, compared to CA$82.4 in December 31, 2021, a decrease of approximately 55%.

"The fourth quarter marked another pivotal moment on our trajectory to growth and profitability," stated Oren Shuster, CEO of IMC. "By commencing our exit from Canada, and the restructuring initiatives announced a few weeks back, we will be able to better focus our resources on growth opportunities in Israel, Germany and elsewhere in Europe. We are determined to continue with our strategic plan by maximizing efficiencies to create a leaner and more flexible organization to better suit the current market environment and our short- to mid-term objectives. We will continue building on the increasing demand and positive momentum in Israel and Germany, supported by strategic alliances with Canadian suppliers and a highly skilled sourcing team, to cement our leadership position in the markets we operate in."

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