InterCure Announces FY2023 Results

Revenue of NIS 356 million and Adjusted EBITDA of NIS 61 million

InterCure Ltd. (NASDAQ: INCR) (TASE: INCR) ("InterCure" or the "Company") today announced results for the full year ending December 31, 2023. All amounts are expressed in New Israeli Shekels (NIS), unless otherwise noted.

FY2023 Financial Highlights and Milestones

• Annual revenue for the year ending December 31, 2023 was NIS 356 million, and the adjusted EBITDA for the year ending December 31, 2023 was NIS 61 million, approximately 17% of revenues, as compared to an Adjusted EBITDA of NIS 51 million in our preliminary results.
• The company's operating profit was NIS 26 million (before reductions of goodwill and fixed assets of NIS 68 million mainly due to war damage).
• Both Q3&Q4 2023 represents the fourteenth & fifteenth consecutive quarters of profitability for InterCure⁵, with both Q3&Q4 2023 showing positive Adjusted EBITDA and profit from operations⁶.
• Expanded the Company's branded products portfolio, launching more than 40 new GMP SKUs during 2023.
• Continued expansion of the Company's dedicated medical cannabis pharmacy chain to a of total 24 active locations as of today. As of October 2023, the Company holds 100% of Cannolam LTD including the full rights to Cookies international agreements, alongside Israel’s largest chain of dedicated medical cannabis pharmacies, Givol.
• Since October 7, 2023, war situation was declared by the Israeli government. As of this date, there is limited access to the Company’s Southern Facility, and parts of the facility are being used by the Israel Defense Forces (the "IDF"), including, among others, the IDF’s medical corps.
• According to Israeli Law, due to the location of the Company’s Southern Facility, the company is entitled to full compensation for all the direct and indirect damages caused to the Southern Facility by the terrorist attack and the war in Gaza. The Company has begun the process of restoring the Southern Facility, and to date, the Company has already received tens of millions of NIS as advance payments from the Israeli authorities in relation to such compensation.
• The October 7^th terror attack effected the company’s revenues in H2 2023, however, the Company expects to resume sequential quarterly growth during 2024.
• Continued execution of the Company's global expansion plan. As recently announced, the Company plans to launch its first products in Germany in the coming months, following the groundbreaking cannabis reform passed.

Alexander Rabinovitch, CEO of InterCure Noted: "Despite extraordinary external challenges this year, InterCure showed solid performance, achieving our fifteenth straight quarter of profitability. This consistent performance highlights the commitment of our team and the effectiveness of the Company’s operational strategy. As the global landscape for pharmaceutical cannabis evolves, we are encouraged by the latest FDA recommendations and the optimistic outlook regarding rescheduling of Cannabis in the U.S. Our leadership in the field, dedication to expanding internationally, enhancing our product offerings, and our focus on adding value for our customers and investors remain pivotal to our ongoing success and growth."