IM Cannabis Corp. (NASDAQ:IMCC) (CSE:IMCC) reported a 13% sequential increase in revenue for the three months ended March 31, 2024, hitting CA$10.7 million ($7.8 million). That is, however, a 4% decrease compared to the same quarter of last year.
Oren Shuster, the company's CEO, said IM Cannabis will double down on Germany now that recent approvals from both the German Bundesrat and Bundestag legalized the possession of marijuana.
"With the April 1st cannabis legalization in Germany, we are augmenting our focus and resources on the German market, where we expect to see the biggest growth potential and the best return on investment," Shuster said. "While it is still too early to make any predictions, our sales in Germany almost doubled during April."
See also: IM Cannabis' Q4 Revenue: Gross Profit Drops Due To Negative Impact Of Israel-Hamas War, Sees Germany As Growth Opportunity
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Q1 2024 Financial Highlights
- Revenues were CA$12.1 million compared to CA$12.5 million in the first quarter of 2023, a decrease of 3% year-over-year.
- Gross profit was CA$1.8 million, compared to CA$2.9 million in Q1 2023, a decrease of 39%.
- The total dried flower sold was approximately 1,873 kg with an average selling price of CA$5.68 per gram, compared to approximately 1,842kg in the prior year's quarter, with an average selling price of CA$6.59 per gram.
- Total operating expenses were CA$7.4 million compared to CA$6.5 million in the same quarter of 2023.
- Selling, general and administrative expenses were CA$2.3 million, representing a year-over-year decrease of 28%.
- Selling and marketing expenses were CA$2.3 million, compared to CA$2.8 million in the first quarter of 2023.
- Net Loss from continuing operations was CA$6 million, compared to CA$0.9 million in the prior year's period.
- Non-IFRS adjusted EBITDA loss was CA$2.1 million, compared to an Adjusted EBITDA loss of CA$1.9 million in the first quarter of 2023, representing an increase of 10% year-over-year.
- Cash and cash equivalents as of March 31, 2024, were CA$1 million compared to CA$1.8 million in Dec. 31, 2023.
- Total assets as of March 31, 2024, were CA$41.1 million, compared to CA$48.8 million in Dec. 31, 2023, representing a decrease of 16% year-over-year.
- Total liabilities as of March 31, 2024, were CA$32.8 million, compared to CA$35.1 on Dec. 31, 2023, representing a decrease of about 7%.
IMCC Price Action
IM Cannabis' shares traded 7.48% lower at $0.7398 per share at the time of writing on Wednesday morning.
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