IM Cannabis Corp. reported a significant turnaround in the fourth quarter of 2024. This marked the culmination of a repositioning year with a 25% increase in revenue and their first adjusted EBITDA quarterly profit since recent history.
Medical cannabis company with headquarters in Canada and Israel generated C$13.3 Million in Revenue for the Fourth Quarter of 2024 which ended on December 31, up from C$10.7 Million in the same period in 2023.
Oren Shster, the CEO, stated in a press release that he was “very proud” of the growth IMC has achieved in Germany. He added, “I am also delighted by the internal progress made both strategic and operationally.”
The net loss for 2023 was C$10.2 millions, while the C$11.8-millions recorded by the company in 2018 is C$11.8-millions.
For the quarter ending in December 2023, the company posted a C$500,000 profit adjusted EBITDA, as opposed to a C$4.3million loss. The company’s adjusted EBITDA losses for the year were reduced by 87% to C$1.1m, compared with the C$8m loss in 2023.
“The improvement was due largely to cost reductions,” the company stated. Operating expenses dropped by 42 percent in the fourth-quarter compared with the prior year. Total annual expenses were down 17% at C$18.7 millions, a drop from C$22.6 in 2023.
The revenue from Germany increased by 183% in the same period, to C$15.55m in 2024 compared with C$5.5m in 2023. In Israel, revenue decreased by around C$8.5million due to cancellation of Oranim.
In 2024, the company incurred other operating costs of C$3.2million. This was primarily because of a one-time Oranim Revocation expense of C$2.7million and a goodwill impairment charge of C$500,000.
“In Q4 … we are starting to see the initial impact of the savings we initiated during 2024 through our active cost management and full integration,” Shuster noted. This gives us an excellent foundation for 2025. We anticipate the Q1 of that year to be our best sales quarter ever in Germany.
The CFO Uri Bürenberg said, “Despite the temporary effect of clearing inventory on gross profits, the significant 17% decrease in operating costs has led to meaningful improvements in operating results.”
Total revenue reached C$54.8 Million in 2024, a 11% rise from C$48.8 Million in 2023. The gross profit was C$8.5million, down from C$9.8million in 2023. This is due to an inventory clearing of C$3.8million.
As of Dec. 31 2024, the total assets of the company were C$39.2 Million, down C$48.8 Million at the end in 2023. A decline that the company attributes mainly to the Oranim Agreement cancellation which accounts for C$9.5 millions of the decrease.
At the year’s end, however, cash and its equivalents amounted to only C$900,000. By 2023, this figure will rise to C$1.8 million. A note titled “going concern” was included in the financial statements of the company, signalling potential liquidity problems if current trends are maintained.