Israeli Cannabis Producer Touts Record Q3 Revenue, Gross Profit Increase

Jelena Martinovic , Benzinga Staff Writer

November 15, 2022 10:20am Comments

InterCure Ltd. (NASDAQ: INCR) (TSX: INCR.U) (TASE: INCR), which is doing business as Canndoc, announced on Tuesday its financial and operating results for the third quarter ended September 30, 2022.

"We continued to execute on our international expansion plans building our footprint organically and exploring strategic acquisitions in key markets to meet the solid demand for our high-quality branded products," Alexander Rabinovitch, the company's CEO, said. "We expect 2022 to be another milestone year for InterCure, solidifying our leadership position in the pharmaceutical cannabis market."

Q3 2022 Financial Highlights

Record revenue of CA$39 million ($29.4 million), representing a 63% growth in the third quarter of 2021 and representing sequential growth of 6%.
Gross profit totaled CA$17.06 million, compared to $CA9.55 million in the prior year's period.
The gross profit margin was 44%, compared to 40% in the same quarter of last year.
Adjusted EBITDA increased 85% year-over-year to CA$9 million, representing 22% of revenues.
The adjusted EBITDA margin was 22%, compared to 19% in the corresponding quarter of 2021.
General and administrative expenses totaled $CA5.4 million, while marketing and selling expenses were roughly CA$6.5 million.

Q3 2022 Operational Highlights

Record of new product launches with more than 10 new GMP SKUs added to the company's portfolio of products during the quarter.
Expansion of the company's medical cannabis dedicated pharmacy chain to a total of 25 locations as of the end of the third quarter.
Continued scaling up production cultivation and production of the Southern facility as the region's largest and most advanced facility of its kind.