Rising High: Exclusive talk with multi-country operator IM Cannabis
In this edition of "Rising High," The Fly conducted an exclusive interview with Oren Shuster, Chief Executive Officer of IM Cannabis (IMCC), an Israeli-based multi-country operator in the medical and adult-use cannabis sector. Here are some highlights:
INTERNATIONAL OPERATIONS: IM Cannabis is an international cannabis company offering premium products to medical patients and recreational consumers globally. The company operates in Israel through its commercial relationship with Focus Medical to cultivate, import and distribute cannabis as well as through its medical cannabis retail pharmacies, online platforms, distribution centers and logistical hubs. IM Cannabis also operates in Europe through Adjupharm, a German-based subsidiary and EU-GMP certified medical cannabis producer, and in Canada through Trichome JWC Acquisition and MYM, where it cultivates and processes cannabis for the adult-use market under the WAGNERS and Highland Grow brands. “IMC is in a bit of a different position because we’re working in three markets,” Shuster said. “Each of our markets is very different. The Canadian market is more mature but still growing, the Israeli market is growing rapidly and the German market will expand very rapidly in the near future.” He added that IMC has a well-balanced portfolio with a handful of revenue growth and margin opportunities in each of the countries, noting WAGNERS and Highland Grow continue to build momentum and market share in Canada. “I can tell you that we’ve become one of the leaders in the ultra-premium segment in Canada,” the CEO said. “We are number two now in the Ontario Cannabis Store and we serve all the provinces.” IMC is also making significant moves in Israel and Germany, he said, which will come to fruition mainly in Q1 and beyond.
Q3 EARNINGS: On November 15, IMC reported third quarter revenue of C$14.4M, a sequential increase of approximately 30% from Q2. The company also reported gross margin of 20%, up from 5.4% in Q2, and Adjusted EBITDA loss of C$7M, inclusive of C$1.6M of non-recurring acquisition-related costs. IMC guided to continued sequential revenue growth in Q4 and into 2022 and anticipated that gross margin will continue to increase as revenue growth offsets fixed operating costs. “The momentum of growth will continue for IMC and we will see an increase in revenues, EBITDA and gross margins in the next quarters,” the CEO said. “We’ve seen growth of about 20% for the last quarter and I think that we will continue to see very similar growth in the next quarter. I am very optimistic about that and most of the growth will come organically and not through M&A.”
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