Full Press Release Details
Reports First Half 2025 Results with NIS 130 Million in Revenue and Positive Operating Cash Flow
Company reports NIS 130 million in revenue and NIS 12 million in positive operating cash flow, demonstrating resilience and sustained
profitability with its eleventh consecutive half of positive Adjusted EBITDA amidst ongoing recovery in Israel
is encouraged by recent regulatory momentum in the U.S. and believes that it is well positioned to capitalize on evolving U.S. cannabis
rescheduling, especially following its recent signing of an agreement to acquire ISHI
YORK and HERZLIYA, Israel, October 8, 2025 - InterCure Ltd. (NASDAQ: INCR) (TASE: INCR) ("InterCure"
or the "Company"), today announced its financial and operating results for the first half of 2025.
Rabinovitch, CEO of InterCure, stated: "In the first half of 2025, InterCure delivered revenues of NIS 130 million, achieving positive
Adjusted EBITDA for the eleventh consecutive half year period and generating NIS 12 million in positive operating cash flow. This performance
underscores the strength of our vertically integrated business model and our ability to navigate a challenging environment, including
the impact of the October 7 attack and the ongoing war in Gaza. We continue to work closely with Israeli authorities to secure full compensation
for damages to our southern facility.
ahead, we are confident in our ability to continue our recovery growth trajectory, expanding our international footprint,
and strengthen our leadership in the pharmaceutical cannabis industry, particularly with the strategic acquisition of ISHI, which positions
us to capitalize on evolving opportunities in the global cannabis market. At the same time, we are closely monitoring regulatory developments
in the U.S. regarding potential rescheduling of cannabis."
Half 2025 Financial Highlights
amounts are expressed in New Israeli Shekels (NIS), unless otherwise noted)
Adjusted EBITDA means net income (loss) before interest, taxes, depreciation and amortization 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). Other income,
net includes war-related damage compensation from the tax authorities, changes to allowance for credit risk and impairment of inventory.
Including restricted cash and deposits.
and Strategic Highlights
InterCure (dba Canndoc)
(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.
more information, visit: https://www.intercure.co
The claim is not final and remains subject to adjustment. The total amount claimed may be increased as further information becomes available.
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, and other income, net which included war-related damage compensation from the tax
authorities, changes to allowance for credit risk, and impairment of inventory. 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 measures 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.
press release contains forward-looking statements. Forward-looking statements may include, but are not limited to, the Company's
expected growth, including in Adjusted EBITDA, success of its global expansion plans, its expansion strategy to major markets worldwide,
expected receipt of additional compensation from the Israeli government, and the expected completion of the acquisition of
ISHI, 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 in executing its global expansion plans (including the pending acquisition of Botanico Ltd. (ISHI)), its continued
growth, expected operations and financial results, business strategy, competitive strengths, goals and expansion into major markets worldwide,
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 landscape 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, as well as in the Company's Form 6-K containing the unaudited condensed consolidated financial
statements for the six months ended June 30, 2025, and in other filings that we have made and may make with the Securities and
Exchange Commission in the future.
Cohen, Chief Financial Officer
American & Israeli Equities Desks
Consolidated Interim Statements of Financial Position (Unaudited)
| As of June 30 | ||||||||
| NIS in thousands | ||||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | 51,334 | 19,899 | ||||||
| Restricted cash and deposits | 2,436 | 948 | ||||||
| Trade receivables, net | 46,931 | 61,672 | ||||||
| Other receivables | 119,604 | 158,045 | ||||||
| Inventory | 148,174 | 126,466 | ||||||
| Biological assets | 5,269 | 3,388 | ||||||
| Financial assets measured at fair value through profit or loss | 250 | 399 | ||||||
| Total current assets | 373,998 | 370,817 | ||||||
| NON-CURRENT ASSETS: | ||||||||
| Other receivables | 5,824 | 439 | ||||||
| Property, plant and equipment and right-of-use asset | 105,046 | 98,611 | ||||||
| Goodwill | 224,778 | 223,609 | ||||||
| Deferred tax assets | 39,970 | 27,042 | ||||||
| Financial assets measured at fair value through profit or loss | 2,147 | 1,922 | ||||||
| Investment in associate and loan | - | 18,447 | ||||||
| Total non-current assets | 377,765 | 370,070 | ||||||
| TOTAL ASSETS | 751,763 | 740,887 | ||||||
| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Short term loan and current maturities | 62,767 | 81,755 | ||||||
| Trade payables | 90,785 | 83,071 | ||||||
| Other payables | 44,454 | 39,965 | ||||||
| Contingent consideration | 3,966 | 4,082 | ||||||
| Total current liabilities | 201,972 | 208,873 | ||||||
| LONG-TERM LIABILITIES: | ||||||||
| Long term loans | 94,917 | 51,317 | ||||||
| Liabilities in respect of employee benefits | 973 | 841 | ||||||
| Lease liability | 21,657 | 17,741 | ||||||
| Total long-term liabilities | 117,547 | 69,899 | ||||||
| EQUITY: | ||||||||
| Share capital, premium and other reserves | 675,393 | 649,013 | ||||||
| Capital reserve for transactions with controlling shareholder | 2,388 | 2,388 | ||||||
| Receipts on account of shares | 19,591 | - | ||||||
| Capital reserve for transactions with non-controlling interests | 13,561 | 13,561 | ||||||
| Accumulated losses | (279,786 | ) | (204,518 | ) | ||||
| Equity attributable to owners of the Company | 431,147 | 460,444 | ||||||
| Non-controlling interests | 1,097 | 1,671 | ||||||
| TOTAL EQUITY | 432,244 | 462,115 | ||||||
| TOTAL LIABILITIES AND EQUITY | 751,763 | 740,887 |
Consolidated Interim Statements of Profit or Loss and Other Comprehensive Income (Unaudited)
| For the 6-months ended on June 30 | Year endd December 31 | |||||||||||
| NIS in thousands | ||||||||||||
| 2025 | 2024 | 2024 | ||||||||||
| Revenue | 130,011 | 125,733 | 238,845 | |||||||||
| Cost of revenue before fair value adjustments | 91,449 | 85,291 | 203,252 | |||||||||
| Gross income before impact of changes in fair value | 38,562 | 40,442 | 35,593 | |||||||||
| Unrealized changes to fair value adjustments of biological assets | 1,661 | 1,218 | 6,458 | |||||||||
| Loss from fair value changes realized in the current year | 2,005 | 1,029 | 11,818 | |||||||||
| Gross Profit | 38,218 | 40,631 | 30,233 | |||||||||
| Research and development expenses | 191 | 219 | 414 | |||||||||
| General and administrative expenses | 14,302 | 18,374 | 53,669 | |||||||||
| Sales and marketing expenses | 26,115 | 27,454 | 54,225 | |||||||||
| Other expenses, net | (9,074 | ) | (16,414 | ) | (12,807 | ) | ||||||
| Changes in the fair value of financial assets through profit or loss, net. | 83 | (201 | ) | (341 | ) | |||||||
| Share based payments | 885 | 686 | 2,281 | |||||||||
| Operating Profit | 5,716 | 10,513 | (67,208 | ) | ||||||||
| Financing income | 2,356 | 1,031 | 2,747 | |||||||||
| Financing expenses | 10,369 | 10,070 | 22,862 | |||||||||
| Financing expenses (income), net | 8,013 | 9,039 | 20,115 | |||||||||
| Profit before tax on income | (2,297 | ) | 1,474 | (87,323 | ) | |||||||
| Tax (expense) benefit | 485 | (1,480 | ) | 14,530 | ||||||||
| Total comprehensive Profit (loss) | (1,812 | ) | (6 | ) | (72,793 | ) | ||||||
| Profit (loss) attributable to: | ||||||||||||
| Owners of the Company | (1,704 | ) | 1,433 | (67,795 | ) | |||||||
| Non-controlling interests | (108 | ) | (1,439 | ) | (4,998 | ) | ||||||
| Total | (1,812 | ) | (6 | ) | (72,793 | ) | ||||||
| Earnings per share | ||||||||||||
| Basic earnings (loss) | (0.03 | ) | 0.03 | (1.48 | ) | |||||||
| Diluted earnings (loss) | (0.03 | ) | 0.03 | (1.48 | ) |
| Total comprehensive Profit (loss) | (1,812 | ) | (6 | ) | (72,793 | ) | ||||||
| Interest / Financing expense (income) net | 8,013 | 9,039 | 20,115 | |||||||||
| Tax expenses (benefit) | (485 | ) | 1,480 | (14,530 | ) | |||||||
| Depreciation and amortization | 8,451 | 6,337 | 15,371 | |||||||||
| EBITDA | 14,167 | 16,850 | (51,837 | ) | ||||||||
| Share-based payment expenses | 885 | 686 | 2,281 | |||||||||
| Other income, net | (9,074 | ) | (16,414 | ) | (12,807 | ) | ||||||
| War-related damage compensation from the tax authorities | 9,019 | 16,830 | 42,468 | |||||||||
| Changes to allowance for credit risk | (2,844 | ) | 16,878 | |||||||||
| Impairment of inventory | - | - | 15,960 | |||||||||
| Changes in the fair value of financial assets through profit or loss, net | 83 | (201 | ) | (341 | ) | |||||||
| Fair value adjustment to inventory | 344 | (189 | ) | 5,360 | ||||||||
| Adjusted EBITDA | 12,580 | 17,562 | 17,962 |
More Financial Information:
a comprehensive understanding of the Company's financial reports and related management's discussion and analysis for applicable
periods, please review the Company's annual report on Form 20-F for the fiscal year ended December 31, 2024, and the Company's
Form 6-K containing the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, both available
on the Company's EDGAR profile at https://www.sec.gov/edgar