Debra Borchardt
InterCure Ltd. (NASDAQ: INCR) (TSX: INCR.U) also known as Canndoc released its financial results for the fourth quarter and year ended December 31, 2022 last after the markets closed on Friday. All the amounts are expressed in New Israeli Shekels (NIS) or Canadian dollars ($) unless otherwise noted.
Fourth Quarter
InterCure reported revenue of $41 million (NIS 106 million) 33% growth YoY and 5% QoQ growth due to continued increase in market share versus last year’s revenue of NIS 79 million. The company also reported a net income in the quarter of NIS 5.2 million versus last year’s net loss of NIS 3 million. The earnings per share for the quarter was NIS 0.19 versus last year’s NIS (0.03).
Full Year
InterCure also reported the fiscal year 2022 revenue of $150 million (NIS 389 million). The company attributed the growth to medical cannabis market growth, and increasing demand for its branded products, and the expansion of its medical cannabis dispensing pharmacies footprint across Israel. InterCure also launched the Humboldt series of strains and expanded its portfolio of products adding more than 30 new SKUs. The growth during the period is in line with the company’s strategy to increase its market share within the Israeli medical cannabis market. Selling and marketing expenses also increased due to the launch of 30 new SKUs, resulting in higher marketing budgets.
The company delivered a net income (consolidated) of $17 million (NIS 44 million). The adjusted EBITDA of $32 million (NIS 84 million) represents 22% of revenues. The company also reported positive (consolidated) cash flow from operations of $20 million (NIS 51 million). The cash (consolidated) at year-end was $95 million (NIS 246 million). The company delivered earnings per share for the year of NIS 0.99 versus 2021’s NIS 0.11.
“We are pleased to report another record-breaking quarter and fiscal year for InterCure, solidifying our leading position,” said InterCure CEO Alexander Rabinovich, adding “As our target markets are evolving, we remain focused on execution with financial discipline while navigating through regulatory barriers and market challenges. During 2022, we have successfully ramped up our upstream global supply chain and scaled our downstream distribution operations to meet the solid demand for our high-quality branded products. While favorable regulatory cannabis reforms are on the horizon, we expect our growth journey to continue as we remain focused and committed to expand our leading platform, building shareholder value and improving quality of life for patient communities across the world.”
After the quarter closed, InterCure announced the termination of the Better acquisition agreement, which prompted the company to file a lawsuit to recover the funds loaned in connection with the merger agreement.
