InterCure Ltd. (NASDAQ: INCR) (TSX: INCR.U) posted positive results despite barely missing revenue expectations, as the company looks to further its international reach and shore up it’s new-found partnerships.
The Israeli-based cannabis company — also known as Canndoc — reported its financial report card for the second quarter ending June 30, 2022.
InterCure reported approximately $37 million in revenue during the period, more than double versus the same period last year; and a gain of 9% sequentially — though missing the Yahoo Finance Average analyst estimate for revenues of $39 million.
The company also reported a second-quarter net income of $6 million, remaining flat sequentially; and a net income of $2 million in the same period last year. The earnings were a gain of $0.34 cents per share — above analyst expectation — versus a gain of $0.12 cents per share in the previous quarter, according to SEDAR filings.
“We are proud to deliver our tenth consecutive quarter of profitable growth, solidifying our operational excellency and leading position,” said CEO Alexander Rabinovitch. “We remain focused on developing and launching the highest quality pharmaceutical grade medical cannabis products as our target markets are evolving at a rapid pace. During the second quarter we have successfully ramped up our upstream and downstream operations and executed our global expansion to meet the solid demand for our high-quality branded products.”
InterCure said that it’s the tenth consecutive quarter of high growth representing an annualized run rate of $150 million. Adjusted EBITDA rose 90% year-over-year to $9 million, representing 23% of revenues and 4% sequential growth. Gross profit soared over 115% year-over-year and 16% sequentially to over $16 million.
InterCure also reported that it was the eighth consecutive quarter of positive cash flow from operations — with the company adding that it had $96 million cash on hand.
The company expects continued boosts in revenues during the third quarter of 2022 and throughout the year — especially as it bolster it’s operations at home and its springing European cannabis pharmacies in Austria and the U.K.; as well as breaking into the Australian medical cannabis market.
“Our teams delivered another strong quarter across all sectors, focusing on execution of our profitable growth strategy and fiscal discipline,” CFO Amos Cohen said. “With a strong balance sheet and over $96 million cash on hand, we are well positioned ahead of the consolidation process.”
We expect this growth to continue, while we remain focused and committed to expand our unique platform, building shareholder value and improving quality of life for patient communities,” said Rabinovitch.