Loading...
01/09 22:00
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reflects mixed signals: improved EBITDA and revenue growth in Germany, but significant net loss and inventory challenges. Regulatory changes in Germany and competitive pressures add uncertainty. The Q&A highlighted management's unclear responses, especially regarding margins. Despite some positive financial trends, the lack of a share repurchase program and cash position concerns suggest a cautious outlook, leading to a neutral sentiment.
Operating Expenses $18.7 million in 2024, a decrease of 17% from $22.6 million in 2023, which follows a 43% decrease from $40 million in 2022.
Adjusted EBITDA (Q4) $0.5 million in Q4 2024, an improvement of almost $5 million from a loss of $4.3 million in Q4 2023.
Adjusted EBITDA (Full Year) Loss of $1.1 million in 2024, an improvement of almost $7 million from an $8 million loss in 2023.
Revenue (Q4) $13.3 million in Q4 2024, a 25% increase from $10.7 million in Q4 2023, driven by a 280% increase in German revenue.
Revenue (Full Year) $54 million in 2024, an increase of $5.2 million or 11% from $48.8 million in 2023, attributed to accelerated growth in Germany.
Cost of Revenue (Q4) $10.7 million in Q4 2024, an increase of 12% from $9.6 million in Q4 2023, mainly due to increased material costs.
Gross Profit (Q4) $2.7 million in Q4 2024, an increase of 238% from $0.8 million in Q4 2023.
Gross Profit (Full Year) $8.5 million in 2024, a decrease of 14% from $9.8 million in 2023.
G&A Expenses (Full Year) $8 million in 2024, a decrease of 27% from $11 million in 2023.
G&A Expenses (Q4) $1.2 million in Q4 2024, a decrease of 64% from $3.3 million in Q4 2023.
Selling and Marketing Expenses (Full Year) $7.1 million in 2024, a decrease of 34% from $10.8 million in 2023.
Selling and Marketing Expenses (Q4) $1.8 million in Q4 2024, a decrease of 36% from $2.8 million in Q4 2023.
Net Loss (Full Year) $11.8 million in 2024, compared to $10.2 million in 2023.
Net Loss (Q4) $1.2 million in Q4 2024, compared to $3.5 million in Q4 2023.
Cash and Cash Equivalents $0.9 million as of December 31, 2024, down from $1.8 million on December 31, 2023.
Total Assets $39.2 million as of December 31, 2024, a decrease of 19.7% from $48.8 million on December 31, 2023.
Total Liabilities $36 million as of December 31, 2024, an increase of 3% from $35.1 million on December 31, 2023.
New Strains Launched: Imported a total of 11 new strains in Germany in the second half of 2024 and launched 16 new strains in total for the year.
Strains Relaunched: Launched or relaunched 27 strains across six brands in Israel in 2024.
Revenue Growth in Germany: Sales in Germany increased by over 183% in 2024, contributing to 40% of total revenue in the second half of 2024.
Total Revenue: Total revenue for 2024 was $54 million, an increase of $5.2 million or 11% from 2023.
Operating Expenses Reduction: Reduced overall operating expenses by $4 million (17%) to $18.7 million in 2024, building on a 43% decrease in 2023.
Adjusted EBITDA Improvement: Adjusted EBITDA in Q4 2024 was a gain of $0.5 million, an improvement of almost $5 million from a loss of $4.3 million in Q4 2023.
Focus Shift to Germany: Strategically shifted focus towards the German market, consolidating resources and building a strong supply chain.
Cost Management Strategy: Implemented active cost management and full integration to drive efficiencies and support growth.
Competitive Pressures: The company emphasized the importance of maintaining a competitive edge in the dynamic cannabis market, indicating potential risks from competitors.
Regulatory Issues: The partial legalization of cannabis in Germany in April 2024 was highlighted as a significant change, suggesting that future regulatory developments could impact operations.
Supply Chain Challenges: The company noted that supply was a limiting factor for sales, particularly in Q4, indicating risks related to supply chain management.
Economic Factors: The decline in the number of medical cannabis patients in Israel due to the war was mentioned, which poses risks to revenue and market stability.
Inventory Management: The company faced challenges with slow-moving non-premium stock, leading to a significant write-off of $3.9 million, impacting gross margin and profit.
Financial Stability: The cancellation of the Oranim deal resulted in a revenue decrease of approximately $8.5 million, highlighting risks associated with business agreements and partnerships.
Cost Management: Reduced overall operating expenses by $4 million (17%) to $18.7 million in 2024, building on a 43% decrease in 2023.
Supply Chain Integration: Fully integrated marketing and supply teams to build operational infrastructure and stable supply chain for growth in Germany.
New Product Launches: Imported 11 new strains in Germany in the second half of 2024, with an expected sales upside of 14%.
Sales Growth in Germany: Sales in Germany increased by over 183% in 2024, contributing to 40% of total revenue in the second half of 2024.
Operational Efficiency: Achieved a positive adjusted EBITDA of $0.5 million in Q4 2024, compared to a loss of $4.3 million in Q4 2023.
Revenue Expectations: Q1 2025 is expected to be the best quarter in sales to date in Germany.
Future Growth Strategy: Focus on external growth while maintaining efficiency and agility in the lean structure.
Cost of Sales: Do not anticipate a similar scale of inventory write-off in 2025 as experienced in 2024.
Financial Projections: Net loss for 2024 was $11.8 million, with a diluted loss per share of $4.51.
Share Repurchase Program: None
The earnings call reflects mixed signals: improved EBITDA and revenue growth in Germany, but significant net loss and inventory challenges. Regulatory changes in Germany and competitive pressures add uncertainty. The Q&A highlighted management's unclear responses, especially regarding margins. Despite some positive financial trends, the lack of a share repurchase program and cash position concerns suggest a cautious outlook, leading to a neutral sentiment.
The earnings call summary presents a mixed picture. Positive aspects include a 53% reduction in operating expenses, positive adjusted EBITDA in Q4, and strong revenue growth in Germany. However, challenges like competitive pressures, supply chain issues, and a significant inventory write-off pose risks. The Q&A section reveals concerns about market dynamics and margin progression, with unclear guidance. Financial health is stable but not robust. Overall, the sentiment is neutral, with no strong catalysts for significant stock price movement.
The earnings call presents mixed signals. Positive factors include strong growth in the German market, improved operational efficiency, and reduced losses. However, risks like supply chain challenges, regulatory issues, and competitive pressures counterbalance these positives. No guidance was provided, and there is no share buyback program to boost investor confidence. Given these factors, the stock price is likely to remain stable, resulting in a neutral prediction.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
