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Food Flavors Market is Probable to Influence the Value of USD 29,484.11 million by 2030, Size, Share, Trends, Growth, Demand, Challenges and Competitive Analysis

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HOUSTON, March 27, 2023 (GLOBE NEWSWIRE) — Data Bridge Market Research has recently published comprehensive business research on the “Food Flavors Market” which includes historic data, present market trends, future product environment, marketing strategies, technological innovation, upcoming technologies, emerging trends or opportunities, and the technical progress in the related industry. The market report estimates the region that is foretold to create the most number of opportunities in the global Food Flavors Market. It figures out whether there will be any changes in the market competition during the forecast period. These insights are often critical to key business processes such as product planning, new product development, distribution route planning, and sales force development. This market research report really serves to be a proven solution for businesses to gain a competitive advantage Natural Extracts account for the largest product type segment in the market due to their natural taste and health benefits whereas, natural flavors often contain a combination of isolated plant compounds to re-create the taste of fresh produce or cooked food that accelerated the demand for natural extracts or flavors in the food flavors market.

Data Bridge Market Research analyzes that the global food flavors market is expected to reach the value of USD 29,484.11 million by 2030, at a CAGR of 6.1% during the forecast period.

Get a Sample PDF of Food Flavors Market @ https://www.databridgemarketresearch.com/request-a-sample/?dbmr=global-food-flavors-market

Food flavors are routinely applied to food items to enhance their flavor. The primary taste additives are synthetic and natural flavors. After processing and preserving, perishable foods tend to lose their flavor over time, which causes the need to use flavoring substances to help retain the flavor. The food and beverage industry needs flavors for various reasons, including creating new products, adding new product offerings, and modifying existing products’ flavors. The food and beverage industry’s high demand for new flavors and ongoing growth fuels market expansion. Additionally, during the projected period, the market for food flavors is anticipated to experience growth due to increased demand from the fast food sector.

Food flavors are ingredients that are used to enhance the taste or aroma of food and beverage products. They change the food is perceived and increase consumer interest. These food additives play a significant role in product acceptance and have thus gained immense traction worldwide.

Innovative flavor to cater to the change in customer taste requirements. The applications of advanced technologies provide innovative and novel tastes in food. The global food flavors market is expected to grow in the forecast year due to the rise in market players and the availability of advanced services. Along with this, manufacturers are engaged in R&D activity for launching new flavoring agents in the market. The increasing research in the field of food industry is expected to further boost the market growth. However, stringent government regulations and adverse effects of synthetic flavors on human health are expected to hamper the market growth of the Global Food Flavors market in the forecast period.

Top Leading Key Players of the Food Flavors Market:

  • McCormick & Company, Inc.
  • MartinBauer
  • Prinova Group LLC.
  • Synthite Industries Ltd.
  • GOLD COAST INGREDIENTS, INC.
  • Takasago International Corporation
  • Sensient Technologies Corporation
  • International Flavors & Fragrances Inc.
  • Axxence Aromatic GmbH
  • Huabao International Holdings Limited
  • Blue Pacific Flavors, Inc.
  • Capella Flavors, Inc.
  • FLAVOR PRODUCERS, LLC
  • Firmenich SA.
  • CUSTOM FLAVORS
  • FLAVORCAN INTERNATIONAL INC.
  • Keva Flavors Pvt. Ltd.
  • Abelei Inc
  • Trilogy Flavors
  • Stringer Flavor. Ltd
  • Cargill, Incorporate
  • Synergy Flavor
  • Kerry Group plc
  • Taiyo International
  • T.Hasegawa USA Inc.
  • Flavorchem & Orchidia Fragrance
  • Honeyberry International LLP
  • San-Ei Gen F.F.I., Inc.
  • Essential Flavor

Recent Developments

In February 2022, Kerry, announced that it has made two significant biotechnology acquisitions that will expand its expertise, technology portfolio and manufacturing capabilities. The company has announced that it has reached agreement to acquire the leading biotechnology innovation company, c-LEcta while also confirming that it has acquired the Mexican based enzyme manufacturer, Enmex. This strategically compelling combination with Kerry will accelerate the innovation capabilities in enzyme engineering, fermentation and bio-process development

In May 2022, Givaudan announces the development of Customer Foresight. Combining the most advanced data technologies with the insights and knowledge of Givaudan experts to help customers meet future consumer needs

In May 2022, Symrise reveals an overview of current and future developments in food and beverages. The study combines qualitative and quantitative research methods and serves as an important basis for the development of consumer-preferred taste, nutrition, and health solutions. This identifies the current customer trends in food and beverages

In November 2022, Mane announced the new set up flavor innovation centre in Hyderabad. The innovation center spread over 13,900 sq. ft in hitech city area, will focus on end to end flavor development to cater to the food & beverage market in India and other Asia-Pacific markets

For A More Extensive Look At The Market Analysis, Grab Full Report @ https://www.databridgemarketresearch.com/checkout/buy/enterprise/global-food-flavors-market

Some of the Most Important Questions Scrutinized in the Business Intelligence Report:

  • What are the key growth parameters for this global market during the forecast period?
  • Which key players are expected to hold the largest market share over the forecast period?
  • Who are the leading vendors and manufacturers in this market?
  • What are the key strategies adopted by leading players in the market for business development and geographical expansion?
  • Which end-use industries can trigger high demand in the market over the forecast period?
  • What are the key segments in this market?
  • Which regional player will be anticipated to lead the global market in terms of size?
  • What is the impact of the novel coronavirus pandemic?
  • Which obstacles must new players overcome in order to occupy a major position?

Opportunity

  • INCREASE IN THE NUMBER OF LAUNCHES OF NEW FLAVORS IN NUTRITIONAL FOOD AND BEVERAGES

Nutritional beverages is overgrowing in globally due to their variety of flavors, health benefits and excellent taste. The market players in the global food flavors market. In addition, the players are consistently launching new flavors for foods in the market.

An essential part of the launch plan is validating the product and its benefits quickly. This is done by using the Net Promoter Score (NPS), and the Customer Satisfaction Score (CSAT) can be corrupted when you get negative feedback from users who are not meant to test the first version of your product or feature. In this way, manufacturers of new flavors for food consistently create new launch strategies that help the company grow.

Thus, the new launch strategies are applied in the globe to drive the market. This is an outstanding opportunity for manufacturers as these launches explain the content and quality of the products, enabling consumers to buy more flavors for food.

Thus, the increase in the number of launches of new flavors for nutritional food and beverages is expected to create opportunities for the global food flavors market in the forecast period.

  • Adoption of cannabis as a natural ingredient for flavor development

Terpenes and cannabinoids like tetrahydrocannabinol (THC) and cannabinol (CBD) have enormous potential for application in medicine and health. Additionally, cannabis-derived chemicals have unique characteristics that can impact distinctive flavors to meals and beverages. Studies are being conducted to prove that cannabis can improve taste response and increase food sensory attractiveness. Moreover, combining cannabis with botanicals, such as ginseng, ashwagandha and citrus fruits, not only creates novel flavor profiles but also improves the effect of cannabis on focus, sleep and stress relief. The adaption of cannabis as a flavor ingredient may create an opportunity for the food flavor market to grow exponentially. 

Thus, the adoption of cannabis as a natural ingredient for flavor development is expected to fuel up the business in various dimensions and lead the food flavors market growth

Food Flavors Market Segmentations:

BY PRODUCT TYPE

  • Natural Extract
  • Flavor Ingredient

BY TYPE

  • Fruit Flavors
  • Spice Flavors
  • Herbal Flavors
  • Citrus Flavors
  • Dairy Flavors
  • Nutty Flavors
  • Vegetable Extracts
  • Coffee Flavors
  • Chocolate Flavor
  • Date Derivatives
  • Vegetable Oils
  • Carob Derivatives

BY ORIGIN

  • Natural
  • Natural Identical
  • Artificial

BY CATEGORY

  • Clean Label
  • Heat Stable
  • Regular
  • Non-Allergenic
  • Others

BY SOLUBILITY

  • Water Soluble
  • Oil Soluble
  • Fat Dispersible
  • Others

BY APPLICATION

  • Confectionery
  • Bakery
  • Convenience Food
  • Snacks & Extruded Snacks
  • Frozen Desserts Products
  • Meat & Poultry Products
  • Breakfast Cereals
  • Processed Food
  • Baby Food
  • Sports Nutrition
  • Dietary Supplements
  • Beverages

To Gain More Insights, Visit https://www.databridgemarketresearch.com/reports/global-food-flavors-market

 Drivers

  • Increasing demand FOR different flavors in food and bEverage, bakery and other several industries due to their health benefits

Food and beverage manufacturers have used artificial flavors for decades, and they provide important benefits. They also allow people to enjoy a variety of food flavors even when they are out of season. Flavors can help to keep food pleasurable, with a truly authentic taste and without any off-notes. Different fruity and natural food flavors have become more popular in food industries because of their different taste and fragrance and their health benefits. Artificial flavors are those not extracted from nature but rather re-produced in the lab. It’s generally assumed that “natural” is better, but the science of flavoring is so advanced that many artificial flavors actually have the exact same chemical structure as the naturally occurring ones. Flavors are often not one chemical but a combination of chemicals.

Fruity flavors are coming in high demand in the food and beverages industries, is mainly due to the chemical compound Ethyl propionate. The fruit flavor is a combination of aroma and taste sensations. Conjugation of sugars, acids, phenolics and hundreds of volatile compounds contribute to the fruit flavor. These include citrus type flavors and berry type flavors. These include grapefruit, orange, apple, banana etc. Here I would like to provide an example of fruit flavored infused water available in the market that are of great demand as they provide various health benefits:

Thus, the rising demand for different flavors in all age groups by their health beneficial properties and tastes is increasing in demand of flavors in the food market, and hence it is expected to drive the global food flavors market.

  • Consumer Inclination toward floral and natural flavors

Different floral and fruity natural flavors are added to the bakery products, which gives a natural aroma and taste to the consumers. Fruit flavors are usually prepared by natural products and paired with botanical flavors to give a natural aroma to edible products. Over the last few years, the floral and natural flavors have risen from a niche sector to a large one. A majority of floral essences are used in baked goods and the growth rate of these aromas.

For examples of the flavors used in the bakery products are lemon-lavender cookies, honey-lavender gelato, lemon-violent granola, blackberry-rose marshmallows, and others. The adoption of floral flavors as a trend is attributed to the consumer’s willingness to spend on natural food products and ingredients.

As the rising demand of different flavors is increasing, and the adoption of different flavors by the large population size, is attributed to the consumer’s willingness to spend on natural food products and ingredients. The demand of new flavors are comprehensively increasing by the population and hence expected to drive the global food flavors market.

Food Flavors Market Country Level Analysis

Some countries covered in this Food Flavors Market Report are U.S.,  Canada, Mexico, Germany, France,  U.K., Italy, Spain,  Russia,  Turkey,   Netherlands, Belgium,  Switzerland,  Rest Of Europe, China, Japan, India, South Korea, Australia, Indonesia, Philippines, Thailand, Malaysia, Singapore, Rest of Asia-Pacific, Brazil, Argentina,  Rest of South America, South Africa,  Saudi Arabia, U.A.E,  Egypt,  Rest Of Middle East and Africa.

North America is dominating the market due to the region’s consumption of numerous regional cuisines and the region’s migratory population, authentic food products are consumed there, which has prompted the creation of numerous international edible services.is expected to boost the market growth. The U.S. dominates North America region due to strong presence of key players.

Table of Content

  • Introduction
  • Market Segmentation
  • Executive Summary
  • Premium Insights
  • Global Food Flavors Market Overview
  • Global Food Flavors Market, By Product Type
  • Global Food Flavors Market, By Type
  • Global Food Flavors Market, By Origin
  • Global Food Flavors Market, By  Category
  • Global Food Flavors Market, By Solubility
  • Global Food Flavors Market, By Application
  • Global Food Flavors Market, By Company Landscape
  • SWOT Analysis
  • Company Profile
  • Questionnaire
  • Related Reports

To View, The Full Table Of Contents, Click Here https://www.databridgemarketresearch.com/toc/?dbmr=global-food-flavors-market

Browse Related Reports:

  • Asia-Pacific Food Flavors Market, By Product Type (Natural Extract, Flavor Ingredient), Type (Fruit Flavors, Spice Flavors,  Herbal Flavors, Citrus Flavors, Dairy Flavors, Nutty Flavors, Vegetable Extracts, Coffee Flavors,  Chocolate Flavor, Date Derivatives, Vegetable Oils,  Carob Derivatives, Others), Origin (Natural, Natural Identical, Artificial), Category (Clean Label, Heat Stable, Regular, Non-Allergenic, Others), Solubility  (Water Soluble, Oil Soluble, Fat Dispersible, Others), Form (Liquid, Powder, Syrup), Application (Confectionery, Bakery, Convenience Food, Snacks & Extruded Snacks, Frozen Desserts Products, Meat & Poultry Products, Breakfast Cereals, Processed Food, Baby Food, Sports Nutrition, Dietary Supplements, Beverages) – Industry Trends and Forecast to 2030 https://www.databridgemarketresearch.com/reports/asia-pacific-food-flavors-market
  • North America Food Flavors Market, By Product Type (Natural Extract, Flavor Ingredient), Type (Fruit Flavors, Spice Flavors,  Herbal Flavors, Citrus Flavors, Dairy Flavors, Nutty Flavors, Vegetable Extracts, Coffee Flavors,  Chocolate Flavor, Date Derivatives, Vegetable Oils,  Carob Derivatives, Others), Origin (Natural, Natural Identical, Artificial), Category (Clean Label, Heat Stable, Regular, Non-Allergenic, Others), Solubility  (Water Soluble, Oil Soluble, Fat Dispersible, Others), Form (Liquid, Powder, Syrup), Application (Confectionery, Bakery, Convenience Food, Snacks & Extruded Snacks, Frozen Desserts Products, Meat & Poultry Products, Breakfast Cereals, Processed Food, Baby Food, Sports Nutrition, Dietary Supplements, Beverages) – Industry Trends and Forecast to 2030 https://www.databridgemarketresearch.com/reports/north-america-food-flavors-market
  • Europe Food Flavors Market, By Product Type (Natural Extract, Flavor Ingredient), Type (Fruit Flavors, Spice Flavors,  Herbal Flavors, Citrus Flavors, Dairy Flavors, Nutty Flavors, Vegetable Extracts, Coffee Flavors,  Chocolate Flavor, Date Derivatives, Vegetable Oils,  Carob Derivatives, Others), Origin (Natural, Natural Identical, Artificial), Category (Clean Label, Heat Stable, Regular, Non-Allergenic, Others), Solubility  (Water Soluble, Oil Soluble, Fat Dispersible, Others), Form (Liquid, Powder, Syrup), Application (Confectionery, Bakery, Convenience Food, Snacks & Extruded Snacks, Frozen Desserts Products, Meat & Poultry Products, Breakfast Cereals, Processed Food, Baby Food, Sports Nutrition, Dietary Supplements, Beverages) – Industry Trends and Forecast to 2030. https://www.databridgemarketresearch.com/reports/europe-food-flavors-market
  • Middle East and Africa Food Flavors Market, By Product Type (Natural Extract, Flavor Ingredient), Type (Fruit Flavors, Spice Flavors,  Herbal Flavors, Citrus Flavors, Dairy Flavors, Nutty Flavors, Vegetable Extracts, Coffee Flavors,  Chocolate Flavor, Date Derivatives, Vegetable Oils,  Carob Derivatives, Others), Origin (Natural, Natural Identical, Artificial), Category (Clean Label, Heat Stable, Regular, Non-Allergenic, Others), Solubility  (Water Soluble, Oil Soluble, Fat Dispersible, Others), Form (Liquid, Powder, Syrup), Application (Confectionery, Bakery, Convenience Food, Snacks & Extruded Snacks, Frozen Desserts Products, Meat & Poultry Products, Breakfast Cereals, Processed Food, Baby Food, Sports Nutrition, Dietary Supplements, Beverages), Industry Trends and Forecast to 2030 https://www.databridgemarketresearch.com/reports/middle-east-and-africa-food-flavors-market
  • Europe Pet Food Flavors and Ingredients Market, By Product Type (Flavors and Palatability Enhancer, Mold Inhibitors, Antimicrobials, Pellet Binder, Enzymes, Amino Acid, Feed Acidifiers, Probiotics, Vitamins, Nitrogen, Phytogenic, Carotenoids, Trace Minerals, Antioxidants, Mycotoxin Binders, Cocolorants, Preservatives, and others), Pet Food Type (Dog Food, Cat Food, Aqua Pets Food, Birds Food, and Others), Source (Animal Based, Plant Based, Yeast, and Others), Form (Dry and Liquid), Functionality (Preservation, Processing, Nutrition, and Others), Category (Organic and Conventional), Distribution Channel (Direct and Indirect) https://www.databridgemarketresearch.com/reports/europe-pet-food-flavors-and-ingredients-market
  • Feed Flavors and Sweeteners Market, By Type (Feed Flavours, Feed Sweeteners), Nature (Conventional, Organic), Form (Dry, Liquid), Livestock (Ruminants, Swine, Poultry, Pets, Equine, Aquaculture), Country (China, Japan, India, Australia, Singapore, South Korea, Malaysia, Indonesia, Thailand, Philippines, New Zealand, Vietnam, Rest of Asia-Pacific, U.S., Canada and Mexico, Germany, U.K., France, Spain, Italy, Denmark, Netherlands, Switzerland, Poland, Russia, Sweden, Belgium, Turkey, Rest of Europe, Brazil, Argentina, Rest of South America, South Africa, Saudi Arabia, U.A.E., Oman, Kuwait, Qatar, Rest of Middle East and Africa) https://www.databridgemarketresearch.com/reports/global-feed-flavors-and-sweeteners-market
  • Natural Flavors Market, By Product (Animal Flavors, Plant Flavors), Type (Natural Flavor Synthetic Flavor, Natural Identical Flavoring), Application (Dairy, Bakery, Snack, Confectionery, Beverage, Others), Country (U.S., Canada, Mexico, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, Rest of Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Brazil, Argentina, Rest of South America, U.A.E, Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of Middle East and Africa) https://www.databridgemarketresearch.com/reports/global-natural-flavors-market
  • Fruit Flavors Market, By Flavor Type (Berries Flavors, Stone Fruit Flavors, Tropical and Exotic Flavors, Citrus Flavors, Apple and Pears flavors, Others), Nature (Natural, Synthetic), Form (Liquid, Powder, Syrup), Application (Food and Beverage, Pet Food, Pharmaceutical, Personal Care and Cosmetic, Others), Country (U.S., Canada, Mexico, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, Rest of Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Brazil, Argentina, Rest of South America, U.A.E, Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of the Middle East and Africa) https://www.databridgemarketresearch.com/reports/global-fruit-flavors-market

About Data Bridge Market Research, Private Ltd

Data Bridge Market Research is a multinational management consulting firm with offices in India and Canada. As an innovative and neoteric market analysis and advisory company with unmatched durability level and advanced approaches. We are committed to uncover the best consumer prospects and to foster useful knowledge for your company to succeed in the market.

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Cannabis

IM Cannabis Reports 2023 Financial Results

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im-cannabis-reports-2023-financial-results

TORONTO and GLIL YAM, Israel, March 28, 2024 /PRNewswire/ — IM Cannabis Corp. (the “Company” or “IMC“) (NASDAQ: IMCC) (CSE: IMCC), an international medical cannabis company, announced its financial and operational results for the year ended December 31, 2023, the highlights of which are included in this news release. All figures are reported in Canadian dollars. The Company’s full set of consolidated audited financial statements for the years ended December 31, 2023 and 2022 (the “Annual Financial Statements“) and accompanying management’s discussion and analysis (the “Annual MD&A“) can be accessed by visiting the Company’s website at https://investors.imcannabis.com/, and its profile pages on SEDAR+ at www.sedarplus.ca, and EDGAR at http://www.sec.gov/edgar.

FINANCIAL HIGHLIGHTS FOR THE THREE MONTHS AND YEAR ENDED DECEMBER 31, 2023

  • Revenue decreased to $48.8 million for the fiscal year ended December 31, 2023 (compared to $53.3 in 2022), representing a decrease of 10%.
    • Primarily due to negative currency fluctuations and the impact of the Israel-Hamas war on the Company’s operations.
  • Revenue decreased to $10.7 million for the three months ended December 31, 2023 (compared to $14.5 million in 2022), representing a decrease of 26%.
    • Primarily due to the interruption on the Company’s supply chain caused by the Israel-Hamas war and the Company discounting certain outstanding inventory at lower prices.
  • Gross profit increased to $9.8 million for the fiscal year ended December 31, 2023 (compared to $9.2 million in 2022), representing an increase of 7.5%
  • Gross profit decreased to $0.8 million for the three months ended December 31, 2023 (compared to $2.6 million in 2022), representing a decrease of 68%
    • Primarily due to the interruption on the Company’s supply chain caused by the Israel-Hamas war and the Company discounting certain outstanding inventory at lower prices.
    • The Company’s fair value adjustment was approximately $1 million for the fiscal year ended December 31, 2023 (compared to $2.1 million in 2022).
  • G&A expenses decreased to $11 million for the fiscal year ended December 31, 2023 (compared to $21.5 million in 2022), representing an decrease of 49%
  • G&A expenses decreased to $3.3 million for the three months ended December 31, 2023 (compared to $9.8 million in 2022), representing a decrease of 66%
    • Primarily due to the impairment on Y2022 and restructuring and HC adjustments in 2023.
  • Selling and marketing expenses decreased to $10.8 million for the fiscal year ended December 31, 2023 (compared to $11.5 million in 2022), representing an decrease of 6%
  • Selling and marketing expenses decreased to $2.8 million for the three months ended December 31, 2023 (compared to $3.1 million in 2022), representing a decrease of 10%
    • Primarily due to a decrease in share based compensation payments and a restructuring of the Company’s personnel.
  • Net Loss from continuing operations for the fiscal year ended December 31, 2023 was $10.2 million, as compared to $24.9 million in 2022.
  • Net Loss from continuing operations for the three months ended December 31, 2023 was $3.5 million, as compared to a Net Loss of $9.6 million in the fourth quarter of 2022.
  • Diluted Loss per Share for the fiscal year ended December 31, 2023 was $0.74, compared to a loss of $3.81 per Share in 2022.
  • Diluted Loss per Share for the three months ended December 31, 2023  was $(0.25), compared to a basic loss of $)2.94( per share and a diluted loss of $)3.55( per share in for the three months ended December 31, 2022.
  • Cash and Cash Equivalents as of December 31, 2023, was $1.8 million, compared to $2.4 million as of December 31, 2022. 
  • Total assets were $48.8 million as of December 31, 2023, compared to $60.7 million as of December 31, 2022, representing a decrease of 20%.
    • Primarily attributed to an inventory reduction of about $6.6 million, a reduction in other current assets of $1.8 million and a reduction of non-current assets of about $3.5 million
  • Total Liabilities were $35.1 million as of December 31, 2023, compared to $36.9 as of December 31, 2022, representing a decrease of about 5%. 
    • Primarily attributed to a reduction in trade payables of $6.1 million.
  • Operating expenses decreased to $22.6 million for the year ended December 31, 2023 (compared to $40 million in 2022), representing a decrease of 43%
  • Operating expenses decreased to $6 million for the three months ended December 31, 2023 (compared to $13.3 million in 2022), representing a decrease of 55%
  • Adjusted EBITDA1 decreased to $8 million for the year ended December 31, 2023, (compared to $11.5 in 2022), representing a decrease of 30%
  • Total Dried Flower sold in 2023 was approximately 8,609 kg with an average selling price of $5.14 per gram (compared to approximately 6,794kg, with an average selling price of $7.12 per gram in 2022).
    • Primarily due to increased competition within the retail segment and the Company discounting certain outstanding inventory at lower prices.
  • Total Dried Flower sold in the fourth quarter of 2023 was about 2,082kg with an average selling price of $4.52 per gram (compared to about 2,334kg with an average selling price of $5.19 per gram in 2022).
    • Primarily due to increased competition within the retail segment and the Company discounting certain outstanding inventory at lower prices.

The Annual Financial Statements include a note regarding the Company’s ability to continue as a going concern. The Annual Financial Statements do not include any adjustments relating to the recoverability and classification of assets or liabilities that might be necessary should the Company be unable to continue as a going concern. For more information, please refer to the “Liquidity and Capital Resources” and “Risk Factors” sections in the 2023 Annual MD&A.

Management Commentary

“IMC Germany delivered accelerated growth in 2023, growing 181% from $252K in 2022 to $709K in 2023. During this time, IMC Germany was #1 in sales per stock keeping unit and posted the highest growth against its competitors in the German market.2 With the regulatory rescheduling of cannabis in Germany set to occur effective April 1st, the Company hopes to continue its growth in the market as the market evolves,” said Oren Shuster, Chief Executive Officer of IMC. “In addition, as we are constantly looking for opportunities to maximize shareholder value, we are hopeful that our potential reverse merger with Israel-based Kadimastem Ltd., a clinical cell therapy public company traded on the Tel Aviv stock exchange under the symbol (TASE: KDST) will proceed as expected, which we believe will create significant value for the shareholders.”

“As previously warned and as expected, unfortunately, the Israel-Hamas war had a negative impact on our fourth quarter 2023 results, which weighed on our full year results. Due to the ongoing conflict, there was a 6% decrease in our yearly revenue. Coupled with our fourth quarter of 2023 inventory reduction, the war caused our fourth quarter gross profit to decrease by 68% as compared to the fourth quarter of 2022. However, our gross profit for 2023 increased by 7.5% to $9.8 million as compared to last year,” said Uri Birenberg, Chief Financial Officer of IMC. “Partially offsetting these declines, we were able to reduce our operating costs in the fourth quarter of 2023 by 55% as compared to the fourth quarter of 2022, ending the year with a 43% reduction in our operating costs as compared to last year, as we leaned further into our goal of active cost management.”

Conference Call 

The Company will host a Zoom web conference call today at 9:00 a.m. ET to discuss the results, followed by a question-and-answer session for the investment community. Investors are invited to register by clicking here. All relevant information will be sent upon registration.

If you are unable to join us live, a recording of the call will be available on our website at https://investors.imcannabis.com/ within 24 hours after the call.

Non-IFRS Measures

This press release makes reference to “Gross Margin” and “Adjusted EBITDA”, which are financial measures that are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. These measures are provided as complementary information to the Company’s IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should neither be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS.

For an explanation of how management defines Gross Margin and Adjusted EBITDA, see the 2023 MD&A.

We reconcile these non-IFRS financial measures to the most comparable IFRS measures as set out below:

About IM Cannabis Corp.

IM Cannabis Corp. (Nasdaq: IMCC) (CSE: IMCC) is an international cannabis company that provides premium cannabis products to medical patients in Israel and Germany, two of the largest medical cannabis markets. The Company has exited operations in Canada to pivot its focus and resources to achieve sustainable and profitable growth in its highest value markets, Israel and Germany. The Company leverages a transnational ecosystem powered by a unique data-driven approach and a globally sourced product supply chain. With an unwavering commitment to responsible growth and compliance with the strictest regulatory environments, the Company strives to amplify its commercial and brand power to become a global high-quality cannabis player.

The IMC ecosystem operates in Israel through its commercial relationship with Focus Medical Herbs Ltd., which imports and distributes cannabis to medical patients, leveraging years of proprietary data and patient insights. The Company also operates medical cannabis retail pharmacies, online platforms and logistical hubs in Israel that enable the safe delivery and quality control of IMC products throughout the entire value chain. In Germany, the IMC ecosystem operates through Adjupharm GmbH, where it distributes cannabis to pharmacies for medical cannabis patients. Until recently, the Company also actively operated in Canada through Trichome Financial Corp and its wholly owned subsidiaries, where it cultivated, processed, packaged, and sold premium and ultra-premium cannabis at its own facilities under the WAGNERS and Highland Grow brands for the adult-use market in Canada. The Company has exited operations in Canada and considers these operations as discontinued.

Disclaimer for Forward-Looking Statements

This press release contains forward-looking information or forward-looking statements under applicable Canadian and United States securities laws (collectively, “forward-looking statements“). All information that addresses activities or developments that we expect to occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “likely” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made. In the press release, such forward-looking statements include, but are not limited to, statements relating to: the Company leaving the Canadian cannabis market to pivot its focus and resources to achieve sustainable and profitable growth in its highest value markets, Israel and Germany; the impact of the Israel-Hamas war on the Company, including its operations and the medical cannabis industry in Israel; the timing and impact of the partial legalization of medicinal cannabis in Germany, including, the Company having it “all in house”, the Company being positioned to take advantage of the partial legalization, the Company’s growth in 2024, the market growth for medicinal cannabis in Germany, and the stated benefits of the Company’s EU-GMP processing facility and an EU-GDP logistics center; the Company to host a teleconference meeting as stated; and the Company’s stated goals, scope, and nature of operations in Germany, Israel, and other jurisdictions the Company may operate.

Forward-looking statements are based on assumptions that may prove to be incorrect, including but not limited to: the Company’s ability to focus and resources to achieve sustainable and profitable growth in its highest value markets; the Company’s ability to mitigate the impact of the Israel-Hamas war on the Company; the Company’s ability to take advantage of the partial legalization of medicinal cannabis in Germany; the Company’s ability to host a teleconference meeting as stated; and the Company’s ability to carry out its stated goals, scope, and nature of operations in Germany, Israel, and other jurisdictions the Company may operate.

The above lists of forward-looking statements and assumptions are not exhaustive. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated or implied by such forward-looking statements due to a number of factors and risks. These include:  the failure of the Company to comply with applicable regulatory requirements in a highly regulated industry; unexpected changes in governmental policies and regulations in the jurisdictions in which the Company operates; the Company’s ability to continue to meet the listing requirements of the Canadian Securities Exchange and the NASDAQ Capital Market; any unexpected failure to maintain in good standing or renew its licenses; the ability of the Company and Focus Medical (collectively, the “Group“) to deliver on their sales commitments or growth objectives; the reliance of the Group on third-party supply agreements to provide sufficient quantities of medical cannabis to fulfil the Group’s obligations; the Group’s possible exposure to liability, the perceived level of risk related thereto, and the anticipated results of any litigation or other similar disputes or legal proceedings involving the Group; the impact of increasing competition; any lack of merger and acquisition opportunities; adverse market conditions; the inherent uncertainty of production quantities, qualities and cost estimates and the potential for unexpected costs and expenses; risks of product liability and other safety-related liability from the usage of the Group’s cannabis products; supply chain constraints; reliance on key personnel; the risk of defaulting on existing debt; risks surrounding war, conflict and civil unrest in Eastern Europe and the Middle East, including the impact of the Israel-Hamas war on the Company, its operations and the medical cannabis industry in Israel; risks associated with the Company focusing on the Israel and Germany markets; the inability of the Company to achieve sustainable profitability and/or increase shareholder value; the inability of the Company to actively manage costs and/or improve margins; the inability of the company to grow and/or maintain sales; the inability of the Company to meet its goals and/or strategic plans; the inability of the Company to reduce costs and/or maintain revenues; the Company’s inability to take advantage of the partial legalization of medicinal cannabis in Germany; and the Company’s inability to host a teleconference meeting as stated.

Please see the other risks, uncertainties and factors set out under the heading “Risk Factors” in the Company’s annual report dated March 28, 2024, which is available on the Company’s issuer profile on SEDAR+ at www.sedarplus.ca and Edgar at www.sec.gov/edgar. Any forward-looking statement included in this press release is made as of the date of this press release and is based on the beliefs, estimates, expectations and opinions of management on the date such forward looking information is made. The Company does not undertake any obligation to update forward-looking statements except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

1 Earnings before interest, taxes, depreciation, and amortization (“EBITDA“) and Adjusted EBITDA. These measures do not have a standardized meaning prescribed by International Financial Reporting Standards (“IFRS“) and are therefore unlikely to be comparable to similar measures presented by other issuers. Non-IFRS measures provide investors with a supplemental measure of the Company’s operating performance and therefore highlight trends in Company’s core business that may not otherwise be apparent when relying solely on IFRS measures. Management uses non-IFRS measures in measuring the financial performance of the Company.

2 Based on reporting by Insight Health’s as of December 31, 2023.

 

Company Contact: 

Anna Taranko, Director Investor & Public Relations
IM Cannabis Corp.
+49 157 80554338
[email protected]

Oren Shuster, CEO
IM Cannabis Corp.
+972-77-3603504
[email protected]

 

 

 

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

Canadian Dollars in thousands

December 31,

Note

2023

2022

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$    1,813

$        2,449

Trade receivables

6

7,651

8,684

Advances to suppliers

936

1,631

Other accounts receivable

7

3,889

3,323

Inventory

9

9,976

16,585

24,265

32,672

NON-CURRENT ASSETS:

Property, plant and equipment, net

10

5,058

5,221

Investments in affiliates

15c

2,285

2,410

Right-of-use assets, net

12

1,307

1,929

Deferred tax assets, net

17

763

Intangible assets, net

11

5,803

7,910

Goodwill

11

10,095

9,771

24,548

28,004

Total assets

$       48,813

$       60,676

The accompanying notes are an integral part of the consolidated financial statements.

 

 

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

Canadian Dollars in thousands

December 31,

Note

2023

2022

LIABILITIES AND EQUITY

CURRENT LIABILITIES:

Trade payables

14

$        9,223

$       15,312

Credit from banks and others

13

12,119

9,246

Other accounts payable and accrued expenses

15

6,218

6,013

Accrued purchase consideration liabilities

5

2,097

2,434

PUT Option liability

2,697

Current maturities of operating lease liabilities

12

454

814

32,808

33,819

NON-CURRENT LIABILITIES:

Warrants measured at fair value

17

38

8

Operating lease liabilities

12

815

1,075

Credit from banks and others

394

399

Employee benefit liabilities, net

16

95

246

Deferred tax liability, net

19

963

1,332

2,305

3,060

Total liabilities

35,113

36,879

EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY:

20

Share capital and premium

253,882

245,776

Translation reserve

95

1,283

Reserve from share-based payment transactions

9,637

15,167

Accumulated deficit

(249,145)

(239,574)

Total equity attributable to shareholders of the Company

14,469

22,652

Non-controlling interests

(769)

1,145

Total equity

13,700

23,797

Total equity and liabilities

$       48,813

$       60,676

The accompanying notes are an integral part of the consolidated financial statements.

 

 

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS

AND OTHER COMPREHENSIVE INCOME

Canadian Dollars in thousands

Year ended December 31,

Note

2023

2022

 *) 2021

Revenues

21

$       48,804

$       54,335

$       34,053

Cost of revenues

21

37,974

43,044

25,458

Gross profit before fair value adjustments

10,830

11,291

8,595

Fair value adjustments:

Unrealized change in fair value of biological assets

(315)

6,308

Realized fair value adjustments on inventory sold in the year

(984)

(1,814)

(8,570)

Total fair value adjustments

(984)

(2,129)

(2,262)

Gross profit after fair value adjustments

9,846

9,162

6,333

General and administrative expenses

21

11,008

21,460

17,221

Selling and marketing expenses

21

10,788

11,473

6,725

Restructuring expenses

1

617

4,383

Share-based compensation

20

225

2,637

5,422

Total operating expenses

22,638

39,953

29,368

Operating loss

(12,792)

(30,791)

(23,035)

Finance income

7,006

6,703

23,544

Finance expenses

(3,671)

(1,972)

(673)

Finance income (expense), net

3,335

4,731

22,871

Loss before income taxes

(9,457)

(26,060)

(164)

Income tax expense (benefit)

18

771

(1,138)

500

Net loss from continuing operations

(10,228)

(24,922)

(664)

Net loss from discontinued operations, net of tax

25

(166,379)

(17,854)

Net loss

(10,228)

(191,301)

(18,518)

*)       Reclassified in respect of discontinued operations – see Note 25.

The accompanying notes are an integral part of the consolidated financial statements.

 

 

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS

AND OTHER COMPREHENSIVE INCOME

Canadian Dollars in thousands, except per share data

Year ended December 31,

Note

2023

2022

 *) 2021

Other comprehensive income that will not be reclassified to profit or loss in subsequent periods:

Remeasurement gain on defined benefit plans

38

59

21

Exchange differences on translation to presentation currency

(894)

(1,238)

858

Total other comprehensive income that will not be reclassified to profit or loss in subsequent periods

(856)

(1,179)

879

Other comprehensive income that will be reclassified to profit or loss in subsequent periods:

Adjustments arising from translating financial statements of foreign operation

231

(246)

530

Total other comprehensive income (loss)

(625)

(1,425)

1,409

Total comprehensive loss

$     (10,853)

$    (192,726)

$      (17,109)

Net loss attributable to:

Equity holders of the Company

$      (9,498)

$    (188,890)

$      (17,763)

Non-controlling interests

(730)

(2,411)

(755)

$       (10,228)

$    (191,301)

$      (18,518)

Total comprehensive loss attributable to:

Equity holders of the Company 

$        (10,648)

$    (190,162)

$      (16,357)

Non-controlling interests 

$        (205)

(2,564)

(752)

$        (10,853)

$    (192,726)

$     (17,109)

Earnings (loss) per share attributable to equity holders of the Company from continuing operations:

22

Basic earnings (loss) per share (in CAD)

$              (0.74)

$          (3.13)

$            0.02

Diluted loss per share (in CAD)

$              (0.74)

$          (3.81)

$           (3.62)

Loss per share attributable to equity holders of the Company from discontinued operations:

Basic and diluted loss per share (in CAD)

$        (23.17)

$          (3.08)

Loss per share attributable to equity holders of the Company from net loss:

Basic earnings (loss) per share (in CAD)

$              (0.74)

$        (26.3)

$          (3.06)

Diluted loss per share (in CAD)

$              (0.74)

$        (26.98)

$          (6.7)

*)       Reclassified in respect of discontinued operations – see Note 25.

The accompanying notes are an integral part of the consolidated financial statements.

 

 

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Canadian Dollars in thousands

Share capital and premium

Treasury Stock

Reserve from share-based payment transactions

Translation reserve

Accumulated deficit

Total

Non-controlling interests

Total
equity

Balance as of January 1, 2021

$     37,040

$              –

$       5,829

$       1,229

$   (33,001)

$     11,097

$       1,513

$     12,610

Net loss

(17,763)

(17,763)

(755)

(18,518)

Total other comprehensive income

1,385

21

1,406

3

1,409

Total comprehensive income (loss)

1,385

(17,742)

(16,357)

(752)

(17,109)

Issuance of common shares, net of issuance costs of $3,800

195,259

195,259

2,948

198,207

Purchase of treasury common shares

(660)

(660)

(660)

Exercise of warrants and compensation options

4,293

4,293

4,293

Exercise of options

1,053

(920)

133

133

Share-based compensation

7,471

7,471

7,471

Expired options

32

(32)

Balance as of December 31, 2021

237,677

(660)

12,348

2,614

(50,743)

201,236

3,709

204,945

Net loss

(188,890)

(188,890)

(2,411)

(191,301)

Total other comprehensive income (loss)

(1,331)

59

(1,272)

(153)

(1,425)

Total comprehensive loss

(1,331)

(188,831)

(190,162)

(2,564)

(192,726)

Issuance of treasury common shares

660

660

660

Issuance of shares, net of issuance costs of $178

6,818

6,818

6,818

Exercise of options

992

(659)

333

333

Share-based compensation

3,767

3,767

3,767

Expired options

289

(289)

Balance as of December 31, 2022

245,776

15,167

1,283

(239,574)

22,652

1,145

23,797

The accompanying notes are an integral part of the consolidated financial statements.

 

 

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Canadian Dollars in thousands

Share capital
and
premium*)

Reserve from
share-based
payment
transactions

Translation
reserve

Accumulated
deficit

Total

Non-controlling interests

Total
equity

Balance as of December 31, 2022

245,776

15,167

1,283

(239,574)

22,652

1,145

23,797

Net loss

(9,498)

(9,498)

(730)

(10,228)

Total other comprehensive income (loss)

(1,188)

38

(1,150)

525

(625)

Total comprehensive loss

(1,188)

(9,460)

(10,648)

(205)

(10,853)

Issuance of treasury common shares

2,351

2,351

2,351

Issuance of shares, net of issuance costs of $178

Exercise of options

Other comprehensive income Classification

(111)

(111)

(1,709)

(1,820)

Share-based compensation

225

225

225

Expired options

5,755

(5,755)

Balance as of December 31, 2023

253,882

9,637

95

(249,145)

14,469

(769)

13,700

The accompanying notes are an integral part of the consolidated financial statements.

 

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

Canadian Dollars in thousands

Year ended December 31,

2023

2022

2021

Cash provided from operating activities:

Net loss

$     (10,228)

$ (191,301)

$   (18,518)

Adjustments for non-cash items:

Unrealized gain on changes in fair value of biological assets

(84)

(7,210)

Fair value adjustment on sale of inventory

984

4,342

8,796

Fair value adjustment on warrants, investments, and accounts receivable

(6,955)

(6,000)

(21,638)

Depreciation of property, plant and equipment

644

3,044

3,021

Amortization of intangible assets

1,758

2,343

1,158

Depreciation of right-of-use assets

594

1,944

1,550

Impairment of goodwill

107,854

275

Impairment of property, plant and equipment

2,277

Impairment of intangible assets

7,199

Impairment of right-of-use assets

1,914

Finance income, net

3,019

6,532

1,262

Deferred tax payments (benefit), net

394

(3,004)

278

Share-based payments

225

3,767

7,471

Share based acquisition costs related to business combination

807

Revaluation of other accounts receivable

3,982

Restructuring expenses

8,757

Loss from revaluation of investments

601

1,264

144,867

(4,230)

Changes in non-cash working capital:

Increase (decrease) in trade receivables, net

2,320

6,058

(6,602)

Increase (decrease) in other accounts receivable and advances to suppliers

1,299

3,622

845

Decrease in biological assets, net of fair value adjustments

565

6,412

Increase (decrease) in inventory, net of fair value adjustments

4,771

883

(19,707)

Increase (decrease) in trade payables

(6,098)

11,284

5,573

Changes in employee benefit liabilities, net

(139)

(63)

28

Increase in other accounts payable and accrued expenses

(750)

12,126

2,661

1,403

34,475

(10,790)

Taxes paid

(514)

(681)

(834)

Net cash used in operating activities

(8,075)

(12,640)

(34,372)

The accompanying notes are an integral part of the consolidated financial statements.

 

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

Canadian Dollars in thousands

Year ended December 31,

2023

2022

2021

Cash flows from investing activities:

Purchase of property, plant and equipment

(581)

(1,562)

(4,578)

Proceeds from sales of property, plant and equipment

210

Proceeds from loans receivable

350

7,796

Purchase of intangible assets

(17)

Acquisition of businesses, net of cash acquired

(12,536)

Deconsolidation of subsidiary (see Note 25)

(406)

Investments in financial assets

(13)

Proceeds from sale of investment

319

Proceeds from (investment in) restricted deposits

17

Investments in associates

(601)

(125)

Net cash used in investing activities

(1,182)

(1,533)

(9,012)

Cash provided by financing activities:

Proceeds from issuance of share capital, net of issuance costs

1,688

3,756

28,131

Proceeds from issuance of warrants measured at fair value

6,585

11,222

Proceeds from exercise of warrants

3,682

Proceeds from exercise of options

333

133

Repayment of lease liability

(586)

(1,656)

(633)

Payment of lease liability interest

(63)

(1,429)

(1,347)

Proceeds from loans

5,482

9,636

7,804

Repayment of loans

(4,827)

(4,976)

Interest paid

(1,664)

(902)

(261)

Proceeds from discounted checks

2,802

Net cash provided by financing activities

9,417

4,762

48,731

Effect of foreign exchange on cash and cash equivalents

(796)

(2,043)

(329)

Increase (decrease) in cash and cash equivalents

(636)

(11,454)

5,018

Cash and cash equivalents at beginning of year

2,449

13,903

8,885

Cash and cash equivalents at end of year

$      1,813

$      2,449

$    13,903

Supplemental disclosure of non-cash activities:

Right-of-use asset recognized with corresponding lease liability

$         309

$         613

$      1,678

Conversion of warrant and compensation options into common shares

$                 –

$             –

$         611

Issuance of shares in payment of purchase consideration liability

$                 –

$      3,061

$             –

Issuance of shares in payment of debt settlement to a non-independent director of the company

$      1,061

$             –

$             –

 

 

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