Israeli Company Reports Record 2023 Revenue, Wants To Transition Cannabis Operations To 'Third Party'

Evogene Ltd. EVGN EVGN announced on Thursday its financial results for the fourth quarter and full-year period ending December 31, 2023.

In the fourth quarter revenues amounted to $578 000, down 12% year-over-year. However, the Rehovot, Israel-based cannabis company reported $5.6 million in revenue for 2023, representing a year-over-year increase of 237% from $1.7 million in 2022.

“The Evogene Group has experienced a transformative year with industry perception of our technology and products translating into growing collaborations with world-leading companies," Ofer Haviv, Evogene’s president and CEO, said in a press release.

Haviv praised the company's "collaboration momentum" referring to forged partnerships with Corteva, ICL, Syngenta and Baye, to name a few, via its subsidiaries Casterra Ag Ltd., AgPlenus Ltd., Biomica Ltd., and Lavie Bio Ltd.

"These efforts not only validate our contributions but also bolster our financial position through various revenue streams, reflected in today’s reported revenues," Haviv added.

As for its Canonic Ltd. subsidiary that develops medical cannabis products based on decoding plant genetics for optimized therapeutic effect., Evogene said its reducing its investment in it as a “response to challenging market conditions in the medical cannabis sector.”

The company also said that it’s in advanced discussions regarding the potential transfer of Canonic’s operations to a third party.

However, the completion and terms of such a transfer remain uncertain, Evogene said.

See also: Israeli Cannabis Company Reports Strong Q3 Despite Geopolitical Challenges

Q4 2023 Financial Highlights

• Gross profit totaled $180 000, down from $296 000 in the prior year's period.
• Net financing income amounted to approximately $ 287,000, an increase from approximately $ 6,000 in the same period the previous year.
• Total operating expenses amounted to $7.8 million, up from roughly $4 million in the same quarter of last year.
• Net loss amounted to $7.3 million, an increase from $3.8 million in the same quarter of last year.

FY 2023 Financial Highlights

• Gross profit totaled $3.9 million, up from $ 766,000 in the prior year's period.
• Net financing income totaled approximately $521 000, compared to net financing expenses of approximately $2.8 million in the same period in the previous year.
• Total operating expenses amounted to $30.4 million, up from roughly $27.7 million in the same quarter of last year.
• Net loss amounted to roughly $26 million, down from around $3o million in the same quarter of last year.

Evogene’s Main Accomplishments In 2023

• Partnership with Verb Biotics
• Collaboration with Colors Farm and Ben Gurion University
• €1.2 million ($1.2 million) EU Grant for Ag-Seed Division to develop oil-seed crops with enhanced CO2 assimilation and drought tolerance.

Now read: Israeli Cannabis Co. Reports Solid Q2 Performance, Nearing Growth Targets

EVGN Price Action

Evogene's shares traded 4.43% lower at $0.8875 per share during the pre-market session on Thursday morning.

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