Achieved record revenue of
Achieved quarterly run-rate Q2 Pro Forma1 revenues of
Recorded continued increase in operating profit, EBITDA2 and net profit
Achieved Q2 EBITDA margin of 26% and positive operational cash flow
Revenue growth expected to continue in the third quarter and for the remainder of 2021
Second Quarter 2021 Key Financial & Operating Highlights
- Achieved record revenue of
NIS 45 million ($17 million ), four times greater than the second quarter of 2020 and up 37% compared to the first quarter of 2021. - EBITDA2 for the second quarter of the Company’s cannabis sector was
NIS 12 million ($5 million ), andNIS 11 million ($4 million ) on a consolidated basis. This represents an annual run rate of close toNIS 50 million ($20 million ), a significant increase year-over-year, driven by revenue growth, improvement in gross profit and operating profit. - Positive cash flow from operations for the fourth consecutive quarter.
- Strong balance sheet with
NIS 201 million ($78 million ) of cash as ofJune 30, 2021 . - Generated Pro forma1 second quarter revenues of
NIS 55 million (over$21 million ), representing a run rate ofNIS 220 million ($86 million ). - Recorded a continued increase in operating profit, EBITDA and net profit.
- Continued to grow market share due to solid demand for Canndoc's branded products, expansion of its medical cannabis dispensing operation and continued improvement across all facets of the business, including same store sales (SSS) increase.
- Added three additional medical cannabis licensed pharmacies during the quarter, bringing the total retail locations to eight. Expansion of the Company’s medical cannabis dispensing operation is expected to continue and accelerate in the third quarter and throughout the remainder of 2021.
- Successful launch of the first ever Cookies™ GMP premium products exclusively cultivated and manufactured in the Company’s advanced southern facility.
- Solid international demand for InterCure’s GMP branded products expected to boost global expansion as
Ministry of Economy announced easing regulation for medical cannabis exportation. - Legislation of adult use cannabis and CBD products in
Israel progresses as a new government sworn into office inJune 2021 . - Revenue growth is expected to continue in the third quarter and throughout 2021.
“We continue to execute our profitable growth strategy while strengthening InterCure’s brands, manufacturing and distribution leadership,” said
"The second quarter of 2021 is
________________
1 Includes estimated revenues of all InterCure’s consolidated operations for the entire quarterly period.
2 This is a non-IFRS financial measure and does not have a standardized meaning prescribed by IFRS, please see “Non-IFRS Measures” below.
Key Q2 2021 Financial Highlights – Cannabis Sector
(In thousands NIS)
Q2-20 | Q2-21 | ||
Revenues | 11,185 | 45,230 | |
Gross Profit (1) | 4,814 | 19,268 | |
Operating Profit | (847) | 11,127 | |
Adjusted EBITDA (2) | 1,582 | 11,701 |
Q1-20 | Q2-20 | Q3-20 | Q4-20 | Q1-21 | Q2-21 | |
Revenues | 4,259 | 11,185 | 22,497 | 27,094 | 33,051 | 45,230 |
Gross Profit (1) | 1,516 | 4,814 | 10,755 | 13,302 | 15,427 | 19,268 |
Adjusted EBITDA(2) | (1,313) | 1,582 | 6,970 | 8,675 | 10,965 | 11,701 |
(1) | Gross profit before effect of fair value. | |
(2) | EBITDA adjusted for changes in the fair value of inventory, share-based payment expense, impairment losses (and gains) on financial assets, non-controlling interest and other expenses (or income). This is a non-IFRS financial measure and does not have a standardized meaning prescribed by IFRS, please see “Non-IFRS Measures” below. | |
Second Quarter 2021 Results
The Company reported second quarter 2021 revenue of
During the time of this report,
The Company continued to generate increases in operating profit, EBITDA and net profit during the second quarter of 2021, reflecting InterCure’s market leadership, scale and operational excellence.
During the second quarter the southern facility, the largest and most advanced in
During the quarter, the Company successfully launched new branded products, including the first ever Cookies™ GMP premium products, setting new standards of quality. These were exclusively cultivated and manufactured in the Company’s advanced southern facility as part of the strategic partnership with Cookies™.
In late
Legalization of adult cannabis use progresses, for the first time in Israel’s history cannabis reform was part of the new government's coalition agreements. Since the new parliament was assembled in June, both coalition and opposition parties put forward bills for adult cannabis use with minor differences.
Another expected reform is the completion of de-listing CBD from the Dangerous Drugs Act. With the formation of a new government, this process is expected to continue and come to completion. During the quarter,
The new Minister of Economy also enacted an ease on exporting GMP grade medical cannabis and CBD products from
The Company is in advanced stages of completing an acquisition and merger of Israeli medical cannabis licensed producer 'Better'. The integration with Better is expected to increase InterCure’s market share and further strengthen its leadership position within the pharmaceutical cannabis market.
Consolidated Financial Statements and Management's Discussion and Analysis
About
For more information, visit: http://www.intercure.co
Non-IFRS Measures
This press release makes reference to certain non-IFRS financial measures. Adjusted EBITDA, as defined by InterCure, means earnings before interest, income taxes, depreciation, and amortization, adjusted for changes in the fair value of inventory, share-based payment expense, impairment losses (and gains) on financial assets, non-controlling interest and other expenses (or income). This measure is not a recognized measure under IFRS, does not have a standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. InterCure’s method of calculating this measure may differ from methods used by other entities and accordingly, this measure may not be comparable to similarly titled measured used by other entities or in other jurisdictions.
Forward-Looking Statements
This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects InterCure’s current expectations regarding future events. The words “will”, “expects”, “intends” and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. Specific forward-looking information contained in this press release includes, but is not limited to: the Company’s future revenue growth and results, its ability to list its shares on the Nasdaq, the success of the acquisition of Better and the future outcomes of the acquisition, the legalization of recreational cannabis in
Contacts:
amos@canndoc-pharma.com
Investor and Media Relations:
InterCure@kcsa.com
Tel: 212-896-1233
Source:
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