IM Cannabis Corp. Q3 FY2024 earnings call

• Focused on building a solid foundation for accelerated growth in Germany in 2025.
• Integrated German and Israeli teams to build a strong supply chain and improve resource efficiency.
• Israeli and German teams built a new supply channel from Israel to Germany, launching the first three Israeli-grown strains in Q3.
• Q3 2024 revenues increased to $13.9 million from $12.4 million in Q3 2023, with operating expenses decreasing from $4.9 million to $4.1 million, improving operating expenses ratio to 30% from 40%.
• In Israeli business, focused on premium and ultra-premium markets, relaunched LOT420 and Super Sativa, and cleared slow-moving inventory.

In Q3 2024, IM Cannabis' revenue increased from $12.4 million in Q3 2023 to $13.9 million. German sales saw significant growth: Q2 to Q3 2024 sales increased by 66% to reach $5.8 million, with revenue contribution from Germany significantly higher compared to 2023. The Israeli business shifted resources to support Germany, focused on premium and ultra-premium markets. However, the ongoing war impacted the Israeli supply chain, reduced medical cannabis patients by 10% from July to October, and complications from the July 2024 reform affected the prescription process. The Israeli business relaunched LOT420 with 3 well-received strains and Super Sativa, and cleared about $0.6 million of slow-moving nonpremium stock.

• Focus on building a solid foundation in 2024 to drive accelerated growth in Germany in 2025.
• Expect results from onboarding several new suppliers during 2025.

• Ongoing war impacting Israeli supply chain and causing delays in shipments.
• Reduction in number of medical cannabis patients in Israel by 10% from July to October.
• Complications from the July 2024 reform affecting the prescription process in Israel.

Q: Are there any questions?

A: There are no questions