IM Cannabis Stock Drops On Q2 Earnings, CEO Touts Strategic Decisions That Led To 'Sustainable Profitability'

Author: Jelena Martinovic | August 14, 2023 02:37pm

IM Cannabis Corp. (NASDAQ:IMCC) (CSE:IMCC) reported its second-quarter financial results on Monday for the period ending June 30, 2023. The company's revenue stayed stable with a 4% year-over-year increase to CA$13.2 million ($9.8 million) for the period.

Q2 2023 Financial Highlights

Gross profit totaled CA$3.5 million, representing a year-over-year increase of 57% from $2.2 million in the second quarter of 2022.
Non-IFRS adjusted EBITDA loss was CA$499 000, compared to an adjusted EBITDA loss of $3 million in the same period of last year, a decrease of 83%.
Operating loss amounted to CA$1.8 million, representing a year-over-year decrease of 69%.
Net loss from continuing operations hoovered around CA$3.7 million for the second consecutive year.
General and administrative expenses totaled CA$2.4 million, representing a year-over-year decrease of 28%.
Selling and marketing expenses were CA$2.6 million, a year-over-year decrease of 16%.
As of June 30, cash and cash equivalents were CA$1.3 million, compared to CA$2.4 million on December 31, 2022; total assets were CA$55.8 million, compared to CA$60.7 million on December 31, 2022; and total liabilities were CA$34.2 million, compared to $36.9 on December 31, 2022.

"In Q2 2023, we continued towards our goal of sustainable profitability," said Oren Shuster, chief executive Officer of IMC. "The rightsizing and refocusing we have been working through since Q4 of last year was led by the strategic decision to exit the recreational Canadian market, allowing us to wholly lean into our heritage as one of the pioneers in the Israeli medical cannabis market.

IM Is Seizing Opportunities Worldwide

Meanwhile, Shuster recently praised the anticipated reform of medical cannabis regulations in Israel. The country's Ministry of Health came up with new rules that are expected to significantly reduce the restrictions imposed on the industry, allowing patients easier access to medical cannabis for their treatment.

"With the overhaul of the cannabis regulation, the Israeli Ministry of Health is clearly putting patient needs first, facilitating the access of medical cannabis for many new patients," he said.

In 2021, IMC was the first Israeli cannabis company to debut on the NASDAQ Capital Market. Earlier this year, the company announced the reduction of its workforce in Israel by 20%-25% across all functions to strengthen its focus on core activities and drive efficiencies to realize sustainable profitability.

Interestingly, IMC is not the only global company eyeing opportunities in Europe. Cannabis giants like Tilray Brands Inc., Aurora Cannabis Inc., and Curaleaf Holdings, Inc., to name a few, are just some of the many operators that opted to seize the new opportunity.

To meet some of the top executives and entrepreneurs behind these companies and learn why they opted to expand globally, join us at the upcoming Benzinga Cannabis Capital Conference.

Price Action

IMC’s shares traded 15.3153% lower at $0.94 per share at the time of writing on Monday morning.

The Benzinga Cannabis Capital Conference, the place where deals get done, is returning to Chicago this Sept 27-28 for its 17th edition. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding.

Photo: Courtesy of Hvoenok and GOR Photo on Shutterstock

Posted In: CSE:IMCC IMCC