InterCure Ltd., a prominent Israeli cannabis operator, has announced its financial and operational results for the six months ending June 30, 2024. The company recorded revenue of NIS 126 million ($34.58 million), a decline from the NIS 147 million achieved in the second half of 2023. InterCure attributed this decrease to the October 7th terror attack, which significantly impacted the company’s operations due to damage sustained by its southern facility located at Kibbutz Nir Oz.
Despite the setback, InterCure remains confident about its future prospects. CEO Alexander Rabinovitch emphasized the company’s recent strategic expansion, stating, “Yesterday, we announced the expansion of our strategic partnership with Cookies to the German market, the largest market in Europe, which is experiencing accelerated growth and becoming a key target market for Intercure.” He further highlighted InterCure’s consistent profitability, achieving its 16th and 17th consecutive profitable quarters. Rabinovitch underscored the company’s commitment to leading the pharmaceutical cannabis market, even amidst the challenges posed by the recent attack. InterCure has invested heavily in restoring its damaged facility and anticipates a gradual return to full capacity in the coming quarters. The company is also pursuing compensation from authorities for both direct and indirect damages incurred.
InterCure’s financial performance during the first half of 2024 revealed the following key highlights:
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Adjusted EBITDA:
NIS 20.8 million, compared to NIS 31.2 million in the second half of 2023.*
Gross Profit:
NIS 40.4 million, consistent with the second half of 2023.*
Total Loss:
NIS 6,000, contrasting with an income of NIS 3.8 million in the same period of 2023.*
Assets:
NIS 370.8 million as of June 30, compared to NIS 414.5 million at the end of June 2023.*
Cash on Hand:
NIS 21 million, with an unused credit line exceeding NIS 22 million.InterCure anticipates receiving substantial advance payments from the Israeli authorities as part of the compensation it is entitled to for the damages sustained by its southern facility.
In terms of operational milestones, InterCure has continued to expand its dedicated medical cannabis pharmacy chain, reaching a total of 24 active locations. Since October 2023, the company holds 100% ownership of Cannolam LTD, including full rights to Cookies international agreements, alongside Israel’s largest chain of dedicated medical cannabis pharmacies, Givol. InterCure has also broadened its European footprint through new strategic agreements with Cookies, enhancing its branded product offerings with the most-recognized global cannabis brand. The company plans to launch Cookies Corners licensed pharmacies in Germany and the UK, alongside differentiated online platforms offering the official Cookies retail experience.
InterCure intends to launch over 30 new GMP SKUs during the second half of 2024, executing collaborations with Cookies, Binske, Organigram OGI, and other partners. The company anticipates double-digit growth throughout the second half of 2024 compared to the first half of 2024.
Rabinovitch expressed optimism about InterCure’s future growth, stating, “Intercure is set for significant growth in the coming quarters and years in all territories, and to that end, we have executed strategic actions to strengthen the company’s high-quality cultivation and supply chain in Canada and Europe.”
As of Friday afternoon, InterCure shares were trading 2.47% higher at $2.28 per share.
