InterCure, a prominent player in the international cannabis industry, reported its fiscal year 2023 financial results recently, showing revenue of NIS 356 million and an adjusted EBITDA of NIS 61 million, a notable improvement on the NIS 51 million Adjusted EBITDA estimated in the company’s preliminary results. This marks the company’s fifteenth consecutive profitable quarter. The announcement was made amid significant operational challenges, including damages to its Southern Facility due to a terrorist attack in October 2023 and subsequent conflicts in Gaza. However, the company has already received tens of millions in advanced payments from Israeli authorities and expects to receive full compensation for both direct and indirect damages, in accordance with Israeli law. Notably, InterCure reported that the company’s operating profit before impairments which are mainly related to the war stands at NIS 68 million.
The company also highlighted its financial position, with cash on hand (including restricted cash) reported at NIS 111 million, and shared optimistic growth projections for 2024. This includes the anticipated launch of its products in Germany and potential expansion into the U.S. market, contingent on evolving regulatory frameworks there.
In the United States, momentum is building for the rescheduling of cannabis, with significant advocacy from lawmakers, including Senator Elizabeth Warren. A unified group in Congress is pushing for the Drug Enforcement Administration (DEA) to reclassify marijuana to reflect its medical benefits and changing public opinion. This shift is part of a broader movement aimed at harmonizing federal cannabis regulations with new medical and societal perspectives that recognize the therapeutic potential of marijuana.
Alexander Rabinovitch, CEO of InterCure, commented on the company’s resilience and outlook: “Despite extraordinary external challenges this year, InterCure showed solid performance, achieving our fifteenth straight quarter of profitability. This consistent performance highlights the commitment of our team and the effectiveness of the Company’s operational strategy. As the global landscape for pharmaceutical cannabis evolves, we are encouraged by the latest FDA recommendations and the optimistic outlook regarding the rescheduling of Cannabis in the U.S. Our leadership in the field, dedication to expanding internationally, enhancing our product offerings, and our focus on adding value for our customers and investors remain pivotal to our ongoing success and growth.”
The call for cannabis rescheduling in the U.S. is growing louder, fueled by increased recognition of its medical applications and supported by a majority of Americans favoring such policy changes. This potential regulatory evolution could provide significant opportunities for companies like InterCure, which could potentially capitalize on this to expand into new markets that are increasingly open to the medicinal uses of cannabis.
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