IM Cannabis Corp. (Nasdaq: IMCC) (CSE: IMCC) grew revenue 46% in its fourth quarter, primarily due to the quantity of medical cannabis products sold.
The company announced its financial results for the fourth quarter and full year ended Dec. 31, 2022.
Revenue for IM Cannabis in the fourth quarter increased to $14.5 million versus $9.9 million in the same time period in 2021. In addition, a higher average selling price per gram realized from its portfolio of premium-branded cannabis products in Israel helped boost the top line. Losses in the quarter increased to $10.7 million versus last year’s loss of $8.7 million.
For the full year 2022 revenue increased 60% to $54.3 million versus $34.1 million in 2021. The company reported a loss in 2022 of $30.8 million versus 2021’s loss of $23 million.
“The fourth quarter marked another pivotal moment on our trajectory to growth and profitability,” CEO Oren Shuster said. “By commencing our exit from Canada, and the restructuring initiatives announced a few weeks back, we will be able to better focus our resources on growth opportunities in Israel, Germany, and elsewhere in Europe.
“We are determined to continue with our strategic plan by maximizing efficiencies to create a leaner and more flexible organization to better suit the current market environment and our short- to mid-term objectives,” Shuster continued. “We will continue building on the increasing demand and positive momentum in Israel and Germany, supported by strategic alliances with Canadian suppliers and a highly skilled sourcing team, to cement our leadership position in the markets we operate in.”
IM Cannabis reported that it ended the year with cash and cash equivalents of $2.4 million, compared with $13.9 million in Dec. 31, 2021. Total operating expenses in 2022 were $40 million, compared to $29.4 million in 2021. Total operating expenses in the fourth quarter were $13.3 million, compared to $9.7 million in the fourth quarter of 2021.
The company said its Trichome business entered bankruptcy courts looking for a buyer, but that didn’t seem to happen. It is just winding down the business and liquidating the remaining assets.