IM Cannabis (IMCC) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 12% year-over-year to CAD 13.9 million, with adjusted revenue up 51% excluding the Oranim deal.

• Operating expenses fell 16% to CAD 4.1 million, with selling & marketing expenses down 41% to CAD 1.5 million.

• Net loss narrowed to CAD 1.1 million from CAD 2.1 million in Q3 2023; diluted loss per share was $0.41 versus $0.96.

• Adjusted EBITDA loss improved 82% to CAD 0.2 million from CAD 1.3 million.

• Management focused on operational efficiency, supply chain improvements, and integrating German and Israeli teams.

Financial highlights

• Gross profit for Q3 2024 was CAD 3.1 million, up 19% year-over-year; gross margin after fair value adjustment was 23%.

• Cost of revenues rose 11% to CAD 10.7 million, mainly due to inventory accruals.

• Total dried flower sold was 2,202 kg at CAD 6.20/gram, up 42% in price but down in volume from 2,558 kg at CAD 4.35/gram.

• Cash and cash equivalents as of September 30, 2024, were CAD 2 million, up from CAD 1.8 million at year-end 2023.

• Total assets decreased 8.6% to CAD 44.6 million, mainly due to the Oranim agreement cancellation.

Outlook and guidance

• Foundation built in Q3 2024 is expected to drive accelerated growth in Germany in 2025.

• Several new suppliers are being onboarded, with results anticipated in 2025.