Debra Borchardt
IM Cannabis Corp. (NASDAQ: IMCC) (CSE: IMCC) announced its financial results today for the second quarter ending June 30, 2023. All amounts are reported in Canadian dollars.
Revenues at IM Cannabis increased 4% for the second quarter to $13.2 million versus last year’s $12.7 million for the same time period. The net losses were flat at $3.7 million. The basic loss per share from continuing operations in the quarter of 2023 was $(0.26), compared to a loss of $(0.49) per share in the second quarter of 2022.
“In Q2 2023, we continued towards our goal of sustainable profitability,” said Oren Shuster, Chief Executive Officer of IMC. “The rightsizing and refocusing we have been working through since Q4 of last year was led by the strategic decision to exit the recreational Canadian market, allowing us to fully lean into our heritage as one of the pioneers in the Israeli medical cannabis market. Our extensive expertise within our highly regulated local market, gave us a clear advantage when expanding into Germany, another highly regulated medical market. The strategic pivot to focus on the two largest national medical markets is clearly reflected within our organization post-restructure. I believe this is the cornerstone for our success and stability within these two similar markets.”
Cash and cash equivalents as of June 30, 2023, were $1.3 million, compared to $2.4 million on December 31, 2022. The company’s total liabilities as of June 30, 2023, were $34.2 million, compared to $36.9 on December 31, 2022, a decrease of approximately 7%. The decrease was mainly due to the reduction in trade payables according to the company’s statement.
“Active cost and margin management was a key focus of Q2, accelerating our to move towards sustainable profitability, while maintaining sales,” said Itay Vago, Chief Financial Officer of IMC. “The actions we took since exiting the Canadian market last year and the associated restructure, have significantly improved our gross margin and reduced our total operating expenses, leading to a substantial decrease in our non-IFRS Adjusted EBITDA Loss.”
