IM Cannabis’ Q4 Revenue: Gross Profit Drops Due To Negative Impact Of Israel-Hamas War, Sees Germany As Growth Opportunity
IM Cannabis Corp. (NASDAQ:IMCC) (CSE:IMCC) announced its financial and operational results on Thursday for the year ended Dec. 2023.
The Toronto-headquartered medical cannabis company with a focus on Israel and Germany reported a 10% year-over-year decrease in revenue to CA$48.8 million ($36 million) in 2023. IM Cannabis attributed it to “negative currency fluctuations and the impact of the Israel-Hamas war on the company’s operations.” Fourth quarter revenue dropped 26% year-over-year to CA$10.7 million.
“As previously warned and as expected, unfortunately, the Israel-Hamas war had a negative impact on our fourth quarter 2023 results, which weighed on our full-year results.,” said Uri Birenberg, chief financial officer of IMC. “Coupled with our fourth quarter of 2023 inventory reduction, the war caused our fourth quarter gross profit to decrease by 68% as compared to the fourth quarter of 2022.”
Meanwhile, with Germany’s new cannabis law taking effect on Monday, April 1, the company “hopes to continue its growth in the market as the market evolves,” CEO Oren Shuster said.
In Germany, the third country in Europe to legalize adult-use marijuana after Malta and Luxembourg, the IMC ecosystem operates through Adjupharm GmbH, where it distributes cannabis to pharmacies for medical cannabis patients.
Germany legalizing recreational cannabis …