Israel Archives - Green Market Report

Debra BorchardtApril 3, 2023


InterCure Ltd. (NASDAQ: INCR) (TSX: INCR.U) also known as Canndoc released its financial results for the fourth quarter and year ended December 31, 2022 last after the markets closed on Friday. All the amounts are expressed in New Israeli Shekels (NIS) or Canadian dollars ($) unless otherwise noted.

Fourth Quarter

InterCure reported revenue of $41 million (NIS 106 million) 33% growth YoY and 5% QoQ growth due to continued increase in market share versus last year’s revenue of NIS 79 million. The company also reported a net income in the quarter of NIS 5.2 million versus last year’s net loss of NIS 3 million. The earnings per share for the quarter was NIS 0.19 versus last year’s NIS (0.03).

Full Year

InterCure also reported the fiscal year 2022 revenue of $150 million (NIS 389 million). The company attributed the growth to medical cannabis market growth, and increasing demand for its branded products, and the expansion of its medical cannabis dispensing pharmacies footprint across Israel. InterCure also launched the Humboldt series of strains and expanded its portfolio of products adding more than 30 new SKUs. The growth during the period is in line with the company’s strategy to increase its market share within the Israeli medical cannabis market. Selling and marketing expenses also increased due to the launch of 30 new SKUs, resulting in higher marketing budgets.

The company delivered a net income (consolidated) of $17 million (NIS 44 million). The adjusted EBITDA of $32 million (NIS 84 million) represents 22% of revenues. The company also reported positive (consolidated) cash flow from operations of $20 million (NIS 51 million). The cash (consolidated) at year-end was $95 million (NIS 246 million). The company delivered earnings per share for the year of NIS 0.99 versus 2021’s NIS 0.11.

“We are pleased to report another record-breaking quarter and fiscal year for InterCure, solidifying our leading position,” said InterCure CEO Alexander Rabinovich, adding “As our target markets are evolving, we remain focused on execution with financial discipline while navigating through regulatory barriers and market challenges. During 2022, we have successfully ramped up our upstream global supply chain and scaled our downstream distribution operations to meet the solid demand for our high-quality branded products. While favorable regulatory cannabis reforms are on the horizon, we expect our growth journey to continue as we remain focused and committed to expand our leading platform, building shareholder value and improving quality of life for patient communities across the world.”

After the quarter closed, InterCure announced the termination of the Better acquisition agreement, which prompted the company to file a lawsuit to recover the funds loaned in connection with the merger agreement.

Adam JacksonFebruary 28, 2023


Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) posted earnings results on Tuesday that show the company trimming losses as it tries to profit in a crowded Canadian market suffering from a downward slide in prices.

The fourth quarter and full-year financials were for the period ending Dec. 31, 2022.

Cronos posted net revenue of $22.9 million for the quarter, down 11.3% over the year, though the company managed skirt past the Yahoo Finance’s analysts’ average estimate of $22.1 million.

Net loss for the quarter was $78.8 million, an improvement from $133.8 million in the same period the prior year.

“2022 was a transformative year for Cronos in which we executed a business realignment, including a cost savings program, while staying laser focused on continuing to build our portfolio of borderless products,” said CEO Mike Gorenstein. “We exceeded our originally stated goal by saving $28.7 million in operating expenses in 2022, to right-size our cost structure to be more adaptable to the changing landscape we face globally in the cannabis industry.”

Earnings per share were for a $0.21 loss, $0.16 cents from analysts’ projected average of $0.05 loss per share for the quarter.

In a statement, Cronos attributed the year-over-year revenue slide to falling flower sales in a crowded Canadian adult-use market mainly due to price compression, as well as a weakening Canadian dollar amid its U.S. wind down.

Rising gains in the Israeli medical market has managed to offset those losses, the company said. Net revenue in Israel rose 128% in 2022 versus the year before.

Cronos’ Spinach brand also became the top edible line in Canada in January 2023.

“A significant amount of work went into building the Spinach brand and creating the right products for it,” Gorenstein said. “This achievement was validation of our innovation capabilities and is encouraging.”

Still, pricing pressures in Canada — where supply continues to outstrip demand — is only getting more severe, and worsened conditions could contribute to inventory write-downs on the horizon.

Cronos wrote in its financials filings that it is preparing for “these write-downs to continue as pricing pressures remain elevated,” though the company said in the Tuesday statement (and in less boilerplate fashion) that no inventory write-downs were taken in 2022 and reported $12 million in net profit in 2022 — a $29.5 million improvement from 2021.

The company ended 2022 with $878 million worth of cash and short-term investments.

Adam JacksonAugust 18, 2022


Decibel Cannabis Company Inc. (TSX-V: DB) (OTCQB: DBCCF) posted promising results as it continues to find gains in the Canadian market and overseas. The Alberta-based company delivered its financial report card using Canadian dollars in the period ending June 30, 2022.

Decibel reported approximately $18.6 million in net revenue during the period, up 11% since the previous quarter; and a gain of 49% since the same period last year. Total gross sales were $26 .2 million for the quarter. Additionally, the company reached 4.5% market share in July, rising 70% year over year.

Second-quarter net losses totaled $2.1 million, up 77% sequentially; versus a net loss of $620,000  in the same period last year. The earnings were a loss of one cent per share; in line with the previous quarter.

“Our second quarter results continue to demonstrate that Decibel is on the path we projected in our 2022 operational outlook,” said CEO Paul Wilson. “Our New Unique and Innovative product development and revenue generating initiatives have once again produced quarter-over-quarter record performance. This progress has been compounded by our productivity initiatives and record gross profit, now resulting in positive cash flow, putting us on track for another projected milestone.”

Decibel said that net revenue growth was driven by expanded distribution “particularly in the Ontario market, the continued launch of new General Admission and Qwest infused products in various provinces and continued growth in demand for derivative products.” The company said that net revenue would have been $18.9 million, however, $320,000 of discounts were provided related to discontinued products.

The company also posted record gross margins, a sequential improvement to 41% in the second quarter versus 35% in the previous quarter; and 41% in the same period last year. Decibel said that the increase was driven by “initiatives realized midway through the second quarter” — such as operational efficiencies, automation equipment commissioned and sourcing of more cost-effective components related to the manufacturing of cannabis products.

Adjusted EBITDA was $3.2 million, rising 31% since the previous quarter and 49% since the same time last year — marking Decibel’s eighth quarter of consecutive quarterly positive adjusted EBITDA.

Decibel reported $1.8 million of cash flow from operations in the quarter, a sequential decrease of $1.2 million since the previous quarter and an improvement of $4.8 million since the same time last year.

The company repaid its 9.5% convertible debentures in May with the draw-down of a $12 million term loan fixed at 4.75% — extending the maturity date of $12 million of debt by four years and avoiding approximately 6% of potential shareholder dilution; resulting in $0.6 million of annual interest expense savings.

“The cost engineering initiatives and capital investments impacted the later part of the second quarter, with additional equipment landed early August expected to drive continued sequential margin expansion,” the release said. The company said it achieved its previously stated target of 40 – 45% gross margin ahead of the second half of this year.

At the end of June, the company announced that is had received its certification to export its cannabis products internationally. The IMC-G.A.P certification will allow for a new international sales channels in Israel, and the company expects initial international export to occur in the second half of the year.

“With more highlights scheduled for the back half of 2022,” Wilson said. “Decibel is delivering exactly what we’ve planned and forecasted to the market, ourselves, and our shareholders.”

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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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