Restoration of the Israeli company’s southern facility, which was damaged in the Oct. 7 attack, continues.
Israeli medical marijuana company InterCure Ltd. (NASDAQ: INCR) (TASE: INCR), which operates as Cannadoc, nearly broke even in the first half of 2024, despite damage and disruptions from the ongoing Israel-Hamas war.
The company’s total comprehensive loss for the period that ended June 30 was NIS 6,000 (US$1,654), which was a stark shift from the first half of 2023, when the company recorded a profit of NIS 3.8 million.
But it was also a significant improvement from the NIS 63.5 million reported for all of 2023, primarily due to damages and disruptions following the Oct. 7, 2023, attack by Hamas. Prior to that, InterCure appeared to be on a solid trajectory.
Revenue for the first six months of 2024 was down 40% from the same period a year ago, falling to NIS 125.7 from NIS 208.6 million.
Gross profit was flat sequentially at NIS 40.4 million and down 40% from the prior-year period. However, gross profit margin nearly recovered, coming in at 32% versus 33% in the first half of 2023. Operating profit was NIS 10.5 million.
“InterCure is set for a significant growth in the coming quarters and years in all territories, and to that end, we have executed strategic actions to strengthen the company’s high-quality cultivation and supply chain in Canada and Europe,” CEO Alexander Rabinovitch said in a statement.
This week, the company also announced that was expanding its strategic partnership in Germany with cannabis brand Cookies.
InterCure finished the six-month period with NIS 740.9 million in total assets, including NIS 20.8 million in cash, against NIS 278.8 million in total liabilities.
Under Israeli law, InterCure is entitled to full compensation for the damages to its southern facility at Kibbutz Nir Oz incurred during the Oct. 7 attach and the war that followed.
The company has already received advance payments of “tens of millions of NIS” from Israeli authorities, which it has invested into the restoration of the southern facility. According to a news release, InterCure expects to receive “additional substantial advance payments” to continue the restoration efforts. However, access to the site remains somewhat limited.
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