Business
IM Cannabis Reports First Quarter 2023 Financial Results; Gross Profit Increased 46% Year-over-Year
IMC leans further into its strategy, continuing to focus on the Israeli and German markets with a primary goal of sustainably increasing revenue in each of
About this update from Im Cannabis Corp.
[{"type":"text","content":"IMC leans further into its strategy, continuing to focus on the Israeli and German markets with a primary goal of sustainably increasing revenue in each of these core markets, while accelerating its path to profitability through active cost management and margin improvement. \nTORONTO and GLIL YAM, Israel, May 15, 2023 /PRNewswire/ -- IM Cannabis Corp. (the \"Company\" or \"IMC\") (NASDAQ: IMCC) (CSE: IMCC), an international medical cannabis company, announced its financial results today for the first quarter ended March 31, 2023. All amounts are reported in Canadian dollars and compared to Q1 2022 unless otherwise stated.\nQ1 2023 Financial Highlights \n46% increase in gross profit and 35% compared to Q4, 202242% decrease in operating expenses100% decrease in net loss driven by the increase in gross profit and decrease in operating expensesRevenues stayed stable with a 1% year-over-year increase to $13.2 millionManagement Commentary\n\"In 2022 IMC reworked its strategy,\" said Oren Shuster, Chief Executive Officer of IMC. \"We shifted our focus to meeting patients' and pharmacies' needs. During Q1 of this year, we have continued this transition. IMC is becoming a lean and agile company, with a clear focus on building brands that consumers love, driven by consumer insight.\n\"The strategic shift drove the additional restructuring initiatives we announced this quarter - the reorganization of the Company's management and operations to better suit the current market environment and our short- to mid-term objectives. This allowed us to focus on core activities, drive efficiencies and reduce costs in furtherance of the goal to realize sustainable profitability. We are already seeing the results of our shift in strategy in our Q1 results. Our gross profit increased 46% compared to Q1 2022, while our revenue stayed stable\", concluded Shuster.\nOperational Highlights\nOn March 8, 2023, the Company announced that as part of its ongoing restructuring initiatives, it would be reducing its workforce in Israel by 21% across all functions (including executives), estimated to result in annualized cost savings of $3.6 million from mid-2023 while maintaining revenue.In January and February of 2023, the Company issued an aggregate of 2,828,248 units of the Company (each a \"Unit\") at a price of US$1.25 per Unit for aggregate gross proceeds of U...