NEW YORK & HERZLIYA, Israel – InterCure Ltd. (NASDAQ: INCR) (TASE: INCR), a leading cannabis company, disclosed its preliminary financial results for the full year of 2023, highlighting sustained profitability despite challenges. The company announced an estimated annual revenue of NIS 351 million for 2023, with the second half of the year generating NIS 140 million. InterCure's EBITDA for the year is expected to exceed NIS 50 million.
The company's performance in the third and fourth quarters of 2023 marked its fourteenth and fifteenth consecutive quarters of profitability, with positive EBITDA and operational profit.
This comes after a year marred by a terrorist attack and the war in Gaza, which impacted revenues. However, InterCure has received tens of millions of shekels in partial advanced payments from Israeli authorities as compensation for direct and indirect damages, with further compensation expected.
InterCure also noted its strategic expansion efforts, including launching over 40 new GMP-certified SKUs in 2023 and entering an exclusive partnership with TYSON 2.0, extending its reach to Israel, Australia, the United Kingdom, Germany, and other EU countries.
The company's global expansion plans continue, with the anticipated launch of its first products in Germany in the near future and a close watch on potential cannabis rescheduling in the U.S.
The company's branded product portfolio has expanded, and it has grown its dedicated medical cannabis pharmacy chain to 24 locations as of March 2024. InterCure now fully owns Cannolam LTD, including rights to international agreements with Cookies™, alongside Israel's largest chain of dedicated medical cannabis pharmacies, Givol™.
Alexander Rabinovitch, CEO of InterCure, expressed confidence in the company's resilience and growth trajectory, citing the pharmaceutical cannabis global standard and recent FDA recommendations as positive indicators. The company is also working on restoring its Southern Israel Site, which was affected by the war and used by the Israel Defense Forces.
InterCure plans to file its annual report on Form 20F by the end of April 2024, providing full financial results for the year ended December 31, 2023. The preliminary financial estimates are based on an initial review and are subject to change, with no assurance provided by the company's independent accounting firm at this stage. These results are based on a press release statement and have not been independently verified.
InvestingPro Insights
As InterCure Ltd. (NASDAQ: INCR) continues to demonstrate its resilience and profitability through strategic expansion and sustained revenue growth, a look at the real-time metrics from InvestingPro provides additional insights into the company's financial health and market performance. InterCure's market capitalization stands at a modest $126.89 million USD, reflecting its position in the competitive cannabis market.
The company's P/E ratio, according to the latest data for the last twelve months as of Q2 2023, is relatively high at 43.55, suggesting that investors may expect future earnings growth. However, this is tempered by a PEG ratio of -1.03, indicating potential concerns over the company's earnings growth trajectory relative to its P/E ratio. Despite these figures, InterCure's revenue growth remains robust at 28.06% for the same period, signifying a solid expansion in sales.
InvestingPro Tips reveal that InterCure is trading at a high EBITDA valuation multiple and is near its 52-week high, with a price at 94.49% of this peak. This could indicate a strong market confidence in the company's future prospects. Moreover, the company has seen a significant price uptick with a 110.11% return over the last three months. These metrics underscore the company's recent strong performance and may attract investors looking for companies with positive momentum.
For those interested in more detailed analysis and additional InvestingPro Tips for InterCure, which include insights on the company's debt levels, profitability expectations, and dividend policy, you can find a wealth of information at https://www.investing.com/pro/INCR. There are 12 more tips available that could help investors make more informed decisions. To access these tips and the full suite of InvestingPro features, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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