IM Cannabis Doubles Down On Germany Following Legalization Policy Change, Reports YoY Drop In Q1 Gross Profit And Revenue
Portfolio Pulse from Jelena Martinovic
IM Cannabis Corp. (NASDAQ:IMCC) reported a 13% sequential increase in Q1 2024 revenue, reaching CA$10.7 million, but saw a 4% year-over-year decrease. The company announced a strategic focus on the German market following recent cannabis legalization there, with sales in Germany nearly doubling in April. Q1 financials showed a 39% decrease in gross profit and a significant increase in net loss from continuing operations compared to the previous year. IM Cannabis' shares dropped 7.48% to $0.7398.
May 08, 2024 | 3:22 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
IM Cannabis Corp. reported a mixed Q1 2024 with revenue growth sequentially but a year-over-year decrease, and a significant focus on the German market after legalization. Shares fell 7.48%.
The reported decrease in year-over-year revenue and gross profit, along with the significant net loss, negatively impacts investor sentiment. However, the strategic focus on the German market could offer long-term growth potential, but the immediate reaction is negative due to the financial results and share price drop.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100