InterCure Reports Strong FY2024 Revenue Amid Unprecedented Challenges

InterCure Reports Solid FY2024 Results and Optimistic Q1 2025 Outlook

InterCure Ltd., the leading cannabis company outside North America, unveiled its financial results for the year ending December 31, 2024. The company faced several challenges, notably damages to its Nir Oz facility from a terrorist attack on October 7, 2023, and the ongoing turmoil in Gaza. Despite these circumstances, InterCure showed resilience with a reported revenue of NIS 239 million and an adjusted EBITDA of NIS 24 million, reflecting approximately 10% of its total revenues.

Significant Financial Highlights

The financial results for FY2024 demonstrate an ability to sustain profitability even in adverse conditions. InterCure has been entitled to full compensation from the Israeli authorities for the damages inflicted on its southern facility. As of the end of 2024, it had received NIS 62 million in partial payments, contributing to a cash reserve of NIS 80 million.

Marking a significant milestone, the second half of 2024 saw positive adjusted EBITDA and the company recorded its eighteenth and nineteenth consecutive quarters of profitability. This stability underscores InterCure’s robust business model, enabling it to navigate through turbulent times effectively.

Strategic Expansion

Looking forward, InterCure is set to expand its footprint significantly in Europe, especially through its strategic partnership with Cookies™, a globally recognized cannabis brand. Plans are in motion for launching Cookies products in Germany, which will include Cookies Corners licensed pharmacies with a unique retail experience. This move is indicative of InterCure’s ambition to broaden its branded product offerings and tap into new markets, aligning with its growth strategy.

Q1 2025 Update

As 2025 commences, InterCure continues to build momentum, projecting robust growth. The company anticipates a sequential revenue increase of over 25% in Q1 2025, surpassing NIS 70 million, alongside a favorable adjusted EBITDA. The momentum is fueled by a recent funding initiative that raised NIS 66 million, in addition to the NIS 20 million received from the Israeli authorities to aid in the recovery and expansion of its Nir Oz facility.

The restoration efforts are ongoing and vital for the company’s return to a trajectory of profitable growth. InterCure has already resumed product launches, with over 20 SKUs making their way back into the market, which signals not only recovery but a renewal of its product baseline to meet global demand for its CANNDOC products.

Global Market Outlook

InterCure's commitment to meeting international demand is evident in its plans to enhance operational capacity, collaborating with various local authorities for necessary developments. The company has laid out an ambitious pipeline of over 80 GMP-certified SKUs anticipated for 2025, which includes innovative offerings from its expanding brand portfolio.

Alexander Rabinovich, CEO and Chairman of InterCure, expressed confidence in the company's direction, highlighting strong demand across global markets. He acknowledged the unparalleled challenges faced in 2024 but emphasized InterCure’s readiness to leverage its recovery efforts to capitalize on emerging opportunities. The firm remains committed to expanding its operations while taking a proactive role in regional recovery efforts following significant disruptions.

In conclusion, InterCure's steadfast approach amidst adversity and its strategic vision for growth in both domestic and international markets reflects a resilience that is vital for thriving in the evolving cannabis landscape. The outlook for 2025 appears promising, as InterCure prepares to navigate the complexities ahead while focusing on substantial long-term success.