Business
IM Cannabis Reports Record Second Quarter 2022 Financial Results; Revenues Increase 114% YoY to $23.8 Million
Gross margin of 24%, which is expected to increase with further asset integration, product availability, and operational improvements Approximately $6.5
About this update from Im Cannabis Corp.
[{"type":"text","content":"Gross margin of 24%, which is expected to increase with further asset integration, product availability, and operational improvements\nApproximately $6.5 million per year in expected cash cost savings from streamlining operations in Canada and closure of Israeli cultivation farm \nTORONTO and GLIL YAM, Israel, Aug. 15, 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 its second quarter ended June 30, 2022. All amounts are reported in Canadian dollars unless otherwise stated.\nQ2 2022 Highlights \nRevenues increased 114% year-over-year to $23.8 million.Gross profit, before fair value adjustments, was $5.6 million.Implemented streamlining and restructuring plan in Canada, with expected cash cost savings of approximately $4 million per year, including the sale of SublimeCulture Inc. (\"Sublime\"). Completed the closure of the Sde Avraham cultivation farm that Focus Medical Herbs Ltd. (\"Focus Medical\") owned and operated in Israel, with expected cash cost savings of $2.5 million per year, and further centralized operations of recently acquired assets in the country.Management Commentary\n\"We have accelerated along the path to profitability, with increased revenues, operational streamlining, and a focus on cost reduction,\" said Oren Shuster, Chief Executive Officer of IMC. \"Our primary goal is to continue to increase revenue in each of our core markets to build long term shareholder value. By focusing on sustainable revenue growth, while rigorously pursuing cost and margin efficiencies, we believe we can achieve profitability in the short term.\"\n\"Our long-term strategy relies on geographic diversification and preparation to target, upon legalization, new adult-use recreational cannabis markets in Germany followed by the rest of Europe. We are preparing to leverage our global cultivation, brand, and commercial expertise to profitably capture substantial market share across Europe. Our strength is in properly positioning our brands in different markets and the introduction of new SKUs to consistently exceed consumer and patient expectations.\"\n\"Like in Israel, we have embarked on a thorough restructuring of our operations i...