Business
IM Cannabis Reports Record First Quarter 2022 Financial Results; Revenues Increase 169% YoY to $23.6 Million
Gross Profit Increased 37% from Q1 2021 as Operational Efficiencies from Integration Take Hold; Company Expects to Achieve Positive Adjusted EBITDA in Q2 2022
About this update from Im Cannabis Corp.
[{"type":"text","content":"Gross Profit Increased 37% from Q1 2021 as Operational Efficiencies from Integration Take Hold; Company Expects to Achieve Positive Adjusted EBITDA in Q2 2022\nTORONTO and GLIL YAM, Israel, May 12, 2022 /PRNewswire/ -- IM Cannabis Corp. (the \"Company\", \"IM Cannabis\", or \"IMC\") (CSE: IMCC) (NASDAQ: IMCC), a leading medical and adult-use recreational cannabis company with operations in Israel, Canada, and Germany, provided financial results for the three months ended March 31, 2022. All amounts are reported in Canadian dollars unless otherwise stated.\nQ1 2022 Highlights \nRevenues increased 169% year-over-year to $23.6 millionGross profit, before fair value adjustments, was $6.4 million, representing an increase of 37% from Q1 2021 and 67% sequentiallyCompleted four(1) strategic acquisitions in Israel, including the country's largest retail and online pharmacy business and a trade and distribution center with an IMC-GDP license, and began centralizing operations of its newly acquired assetsThe Company's WAGNERS brand sold out in Israel in three weeks, reflecting strong demand for the brand and premium indoor-grown cannabis imported from its Canadian cultivation subsidiary. Management Commentary\n\"We continue to progress well on our path to profitability and achieved another quarter of record revenues, which grew 169% year-over-year in the first quarter,\" said Oren Shuster, Chief Executive Officer of IMC. \"We execute key initiatives that drive margin expansion within each of our market segments and across our operating footprint, which reflect the benefits of integrating our global model. In Israel, we work to consolidate four of the country's leading pharmacies and centralize our distribution and customer support to potentially create significant cost savings while strengthening our brand presence. We also increasingly leverage yield from our Canadian cultivation facilities for our products imported to and sold in Israel, which exhibit a gross margin profile that is nearly double that of products sourced from suppliers.\"\n\"In Canada, our WAGNERS and Highland Grow brands have achieved market share leadership due to our relentless focus on delivering upon consumer expectations, with each brand holding a top three ranking in Ontario within their price segments. As we increase internal cultivation toward full capacity, we ...