InterCure Announces FY2024 Results and Provides Q1 2025 Update: Revenue of NIS 239 Million and Adjusted EBITDA of NIS 24 Million, Strong Start to 2025

Rhea-AI Summary

InterCure (INCR) reported its FY2024 results and Q1 2025 update, showing resilience despite significant challenges. The company achieved revenues of NIS 239 million and Adjusted EBITDA of NIS 24 million (10% of revenues) in 2024. Operations were impacted by the October 7, 2023 terrorist attack on their southern Nir Oz facility, for which InterCure received NIS 82 million in compensation from Israeli authorities. Looking ahead, Q1 2025 shows promise with expected sequential growth of over 25% to NIS 70+ million. The company secured NIS 66 million in funding and is expanding its European presence through a strategic partnership with Cookies™ in Germany and the UK. InterCure maintains a strong cash position of NIS 80 million and operates 25 medical cannabis pharmacies.

Positive

• Secured NIS 66 million in funding for Nir Oz Facility recovery
• Received NIS 82 million in compensation from Israeli authorities for war-related damages
• Expected Q1 2025 sequential growth of over 25% to NIS 70+ million
• Expansion into German market through Cookies™ partnership
• Maintains strong cash position of NIS 80 million
• Continued profitability for 18th and 19th consecutive quarters

Negative

• Revenue declined to NIS 239 million in 2024 from NIS 356 million in 2023
• Net loss of NIS 72.8 million in 2024, worsening from NIS 63.5 million loss in 2023
• Adjusted EBITDA decreased to NIS 24 million from NIS 61 million in 2023
• Southern facility operations significantly impacted by October 7 attack

Insights

Financial Analyst

Despite significant 2024 revenue decline due to terrorist attack, InterCure shows recovery signs with compensation received and projected Q1 2025 growth.

InterCure's 2024 financial results reveal the substantial impact of the October 7, 2023 terrorist attack on its southern facility. Revenue declined 33% to NIS 239 million from NIS 355 million in 2023, while Adjusted EBITDA fell 60% to NIS 24 million. The company reported a net loss of NIS 72.8 million, deeper than 2023's NIS 63.5 million loss.

The company has received NIS 62 million through December 2024 (NIS 82 million to date) as partial compensation from Israeli authorities for facility damage. This funding, along with an additional NIS 66 million secured for recovery efforts, provides crucial financial support for rebuilding operations.

Despite 2024's challenges, InterCure's recovery appears underway. The company projects 25%+ sequential revenue growth for Q1 2025 to over NIS 70 million with positive Adjusted EBITDA. While encouraging, this quarterly run-rate would still annualize below 2023 levels, indicating a gradual recovery path rather than immediate return to pre-attack performance.

The company maintains a reasonable cash position of NIS 80 million, providing operational runway during rebuilding. Their strategic expansion into European markets through partnerships with Cookies™ in Germany and the UK represents geographic diversification amid regional instability.

The restoration of InterCure's Nir Oz facility continues at "full force" with over 20 new SKUs already launched, signaling production capacity is beginning to normalize. This rebuilding, combined with planned facility expansion and international growth initiatives, suggests management is focused on both recovery and positioning for future growth despite significant recent setbacks.

Cannabis Industry Specialist

InterCure's operational recovery shows resilience in cannabis sector despite war impacts, with strategic focus on international expansion and facility restoration.

The impact of the October 7 attack on InterCure's operations highlights the unique geopolitical risks facing cannabis operators in certain regions. The significant disruption to the company's southern facility created substantial operational challenges throughout 2024, forcing the company to navigate production constraints while maintaining market presence.

InterCure's strategic response demonstrates industry resilience. Despite production limitations, the company maintained its position as a leading pharmaceutical-grade cannabis producer outside North America. The expansion of their dedicated medical cannabis pharmacy network to 25 locations shows commitment to vertical integration and maintaining distribution channels despite production challenges.

The strategic partnership with Cookies™, one of the cannabis industry's most recognized global brands, represents a significant opportunity. Expanding this relationship into Germany positions InterCure to capitalize on Europe's evolving cannabis market. The planned Cookies Corners licensed pharmacies in Germany and the UK reflect an omnichannel approach that aligns with broader industry trends toward brand-focused retail experiences.

The resumption of product launches with over 20 new SKUs indicates supply chain recovery and R&D continuity despite operational disruptions. The planned pipeline of 80+ GMP-certified products demonstrates commitment to pharmaceutical-grade standards and product diversification.

InterCure's focus on rebuilding the Nir Oz facility while simultaneously planning its expansion shows forward-thinking leadership despite recent challenges. The collaboration with "Tkumah" administration signals government support for cannabis industry development in Israel, potentially strengthening the company's position in its home market while it pursues international growth opportunities.

• 2024 results were affected by damages to our southern facility caused by the terrorist attack on October 7, 2023, and the continued war in Gaza. 
• InterCure is entitled to full compensation from the Israeli authorities for all direct and indirect damages caused to the southern facility. InterCure received NIS 62 million until December 31, 2024 (to date, NIS 82 million) as partial advanced payments from the Israeli authorities and expects to receive additional substantial payments.
• Revenues in 2024 reached NIS 239 million, alongside an Adjusted EBITDA^[1] of NIS 24 million (approximately 10% of revenues).
• InterCure announced expansion of its strategic partnership with Cookies™ to Germany and expects to launch first Cookies products in Germany during the upcoming months.
• The second half of 2024 ended with positive Adjusted EBITDA^[1] and represents InterCure's eighteenth and nineteenth consecutive quarters of profitability^[1].
• The Company's cash^[2] on hand was NIS 80 million.

Q1 2025 Update

• Strong start to 2025, with expected sequential growth of over 25% to over NIS 70 million for‏ Q1 2025 with positive Adjusted EBITDA^[1]. Expects continued double-digit ‏growth throughout 2025.
• Completed funding of NIS 66 million and received additional NIS 20 million from the Israeli authorities to support the Nir Oz Facility recovery.
• Restoring the southern facility continues at full force, enables the Company to return to profitable growth, including exercising the cookies agreement and expanding international operations in Germany, the UK, and beyond.
• First launches since October 2023 of over 20 SKU's including the first Nir Oz products while experiencing solid global demand for CANNDOC products.
• To meet up with the global demand InterCure promoting a significant development and expanding of the Nir Oz Facility in collaboration with "Tkumah" administration and other authorities in Israel.

NEW YORK & HERZLIYA, Israel, May 1, 2025 /PRNewswire/ -- InterCure Ltd. (Nasdaq: INCR) (TASE: INCR) ("InterCure" or the "Company") today announced results for the full year ended December 31, 2024. All amounts are expressed in New Israeli Shekels (NIS), unless otherwise noted.

 

FY2024 Financial Highlights and Milestones

• Annual revenue for the year ended December 31, 2024 was NIS 239 million, and the Adjusted EBITDA^[1] for the year ended December 31, 2024 was NIS 24 million, approximately 10% of revenues.
• H2/2024 represents the eighteenth and nineteenth consecutive quarters of profitability^[1]. 
• Due to the location of the Company's Nir Oz facility, InterCure is entitled to full compensation from the Israeli authorities for all direct and indirect damages caused to the southern facility in Nir Oz. InterCure received NIS 62 million until December 31, 2024 (to date, NIS 82 million) as partial advanced payments from the Israeli authorities and expects to receive additional substantial payments to cover war related damages. 
• The Company ended 2024 with cash^[2] on hand of NIS 80 million.
• Expands its European footprint with new strategic agreements with Cookies™. Enhancing branded product offerings with the most-recognized global cannabis brand and expects to launch Cookies Corners licensed pharmacies in Germany and UK, alongside differentiated online platforms with the official cookies retail experience.
• Continued expansion of the Company's dedicated medical cannabis pharmacy chain to a of total 25 active locations as of today. The Company holds 100% of Cannolam LTD including the full rights to Cookies™ international agreements, alongside Israel's largest chain of dedicated medical cannabis pharmacies, Givol™ and Leon Pharm.
• Secured Funding of NIS 66 million to support the recovery of Nir Oz Facility. The funding may increase to NIS 107 million to support the expansion of the facility in collaboration with the "Tkumah" administration. The funding includes investments from key shareholders of the company, including our Chief Executive Officer ("CEO") and Chairman, Alexander Rabinovich.
• After the October 7^th, 2023 terrorist attack effects on revenues and operations in 2024, the Company expects to resume sequential quarterly growth during 2025.
• As the restoration of the Nir Oz facility continues in full force, CANNDOC resume launching during 2025 with a pipeline of over 80 GMP SKUs, including Cookies, Binske and new brands, expanding Company's branded products portfolio.

Alexander Rabinovich, CEO and Chairman of InterCure noted: "Despite the unprecedented challenges we faced in 2024, including the impact of the October 7th attack on our Nir Oz facility and ongoing war in Gaza, InterCure remained resilient, generating revenues with positive Adjusted EBITDA^[1], and focused on growth. Following the successful completion of our NIS 66 million funding, we are accelerating the recovery of our Nir Oz facility and have already resumed product launches from the site. As we enter 2025, we are seeing strong demand across our global markets and are confident in our ability to continue delivering double-digit growth, expand our international operations, and lead the Pharmaceutical cannabis industry forward.

We remain hopeful for a swift resolution to the ongoing war and the safe return of all hostages, including our employee and dear friends from the surrounding of the Gaza Strip. We are committed to playing a meaningful role in the region's recovery and rebuilding efforts in the aftermath of these tragic events.

InterCure is thankful to its managers and employees for their commitment and to its strategic partners in Israel and worldwide who stand with us during this time of war."

 

Company's Revenues and Adjusted EBITDA 2021-2024
		*2024				*2023				2022				2021
Revenues			238,845				355,553				388,684				219,677
Net Income			(72,793)				(63,533)				43,749				7,294
Adjusted EBITDA[1]			24,193				60,870				84,125				56,897
(*) Results were affected by damages to our southern facility caused by the terrorist attack on October 7, 2023, and the continued war in Gaza.

 

 

About InterCure (dba Canndoc)

InterCure (dba Canndoc) (NASDAQ: INCR) (TASE: INCR) is the leading, profitable, and fastest growing cannabis company outside of North America. Canndoc, a wholly owned subsidiary of InterCure, is Israel's largest licensed cannabis producer and one of the first to offer Good Manufacturing Practices (GMP) certified and pharmaceutical-grade medical cannabis products. InterCure leverages its market leading distribution network, best in class international partnerships and a high-margin vertically integrated "seed-to-sale" model to lead the fastest growing cannabis global market outside of North America.

For more information, visit: https://www.intercure.co

Non-IFRS Measures

This press release makes reference to certain non-IFRS financial measures. Adjusted EBITDA, as defined by InterCure, means earnings before interest, income taxes, depreciation, and amortization, adjusted for changes in the fair value of inventory, share-based payment expense, impairment losses (and gains) on financial assets, non-controlling interest and other expenses (or income). This measure is not a recognized measure under IFRS, does not have a standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. InterCure's method of calculating this measure may differ from methods used by other entities and accordingly, this measure may not be comparable to similarly titled measured used by other entities or in other jurisdictions. InterCure uses this measure because it believes it provides useful information to both management and investors with respect to the operating and financial performance of the Company.

 

Below is a table of reconciliation of Adjusted EBITDA to net income:
	2024	2023	2022	2021
Revenues	238,845	355,553	388,684	219,677
Net Income	(72,793)	(63,533)	43,749	7,294
Financing cost (net)	20,116	19,719	6,786	9,451
Tax expenses	(14,530)	2,248	93	11,441
Depreciation and amortization	15,371	13,166	11,699	7,393
Share-based payments	2,281	2,592	8,907	6,451
Other expenses (exclude other income from the Tax authorities)	62,497	75,289	2,128	2,971
Changes in the fair value of financial assets	(340)	666	174	1,868
Fair value adjustment to inventory	5,360	3,244	3,874	4,858
Adjusted EBITDA (Consolidated)	17,962	53,392	77,411	51,727
Non cannabis sector expenses	6,231	7,479	6,715	5,170
Adjusted EBITDA (Cannabis Sector)	24,193	60,871	84,126	56,897

 

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements may include, but are not limited to, the Company's  expected growth in Adjusted EBITDA^[1] success of its global expansion plans, its expansion strategy to major markets worldwide, statements relating to the security events in Israel, as well as statements, other than historical facts, that address activities, events or developments that InterCure intends, expects, projects, believes or anticipates will or may occur in the future. These statements are often characterized by terminology such as "believes," "hopes," "may," "anticipates," "should," "intends," "plans," "will," "expects," "estimates," "projects," "positioned," "strategy" and similar expressions and are based on assumptions and assessments made in light of management's experience and perception of historical trends, current conditions, expected future developments and other factors believed to be appropriate. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements. Many factors could cause InterCure's actual activities or results to differ materially from the activities and results anticipated in forward-looking statements, including, but not limited to, the following: the Company's success of its global expansion plans, its continued growth, the expected operations, financial results business strategy, competitive strengths, goals and expansion and growth plans, expansion strategy to major markets worldwide, the impact of the COVID-19 pandemic, the impact of the war in Israel and the war in Ukraine and the conditions of the markets generally. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond InterCure's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to: changes in general economic, business and political conditions, changes in applicable laws, the U.S. regulatory landscapes and enforcement related to cannabis, changes in public opinion and perception of the cannabis industry, and reliance on the expertise and judgment of our senior management. More detailed information about the risks and uncertainties affecting us is contained under the heading "Risk Factors" included in the Company's most recent Annual Report on Form 20-F and in other filings that we have made and may make with the Securities and Exchange Commission in the future.

Contacts

InterCure Ltd.
Amos Cohen, Chief Financial Officer
amos@intercure.co

^[1] "Adjusted EBITDA" means EBITDA for cannabis sector adjusted for changes in the fair value of inventory, share-based payment expense, impairment losses (and gains) on financial assets, and other expenses (or income); "EBITDA" means net income (loss) before interest, taxes, depreciation and amortization.
^[2] Including NIS 2 million in restricted cash.

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SOURCE InterCure Ltd.

FAQ

What were InterCure's (INCR) key financial results for FY2024?

InterCure reported revenues of NIS 239 million, Adjusted EBITDA of NIS 24 million (10% of revenues), and a net loss of NIS 72.8 million for FY2024.

How much compensation did InterCure receive for the October 7 attack damage?

InterCure received NIS 82 million to date as partial advanced payments from Israeli authorities, with NIS 62 million received by December 31, 2024.

What is InterCure's growth forecast for Q1 2025?

InterCure expects sequential growth of over 25% to more than NIS 70 million in Q1 2025 with positive Adjusted EBITDA.

What new market expansion plans does InterCure (INCR) have for 2025?

InterCure is expanding its European footprint through a strategic partnership with Cookies™, planning to launch Cookies Corners licensed pharmacies in Germany and UK.

How much funding did InterCure secure for the Nir Oz Facility recovery?

InterCure secured NIS 66 million in funding, which may increase to NIS 107 million to support the expansion of the facility in collaboration with the Tkumah administration.