Logitech Delivers New Sales Record and Sixth Consecutive Year of Growth

Published

5 years ago

April 30, 2019

Reading Time: 13 minutes

Earnings Per Share Up Over 20%; Company Beats Three-Year Non-GAAP EPS
Goal A Full Year Early

LAUSANNE, Switzerland & NEWARK, Calif.–(BUSINESS WIRE)–Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced
financial results for the fourth quarter and full year of Fiscal Year
2019, ended March 31, 2019.

For Fiscal Year 2019:

Sales were the highest ever at $2.79 billion, up 9 percent in US
dollars and 10 percent in constant currency compared to the prior
year, the sixth consecutive year of growth.
GAAP operating income grew 15 percent to $263 million, compared to
$230 million a year ago. GAAP earnings per share (EPS) grew 24 percent
to $1.52, compared to $1.23 a year ago.
Non-GAAP operating income grew 23 percent to $352 million, compared to
$287 million a year ago. Non-GAAP EPS grew 26 percent to $2.01,
compared to $1.60 a year ago.

For Q4 Fiscal Year 2019:

Sales grew to $624 million, up 5 percent in US dollars and 9 percent
in constant currency compared to Q4 of the prior year.
GAAP operating income grew 8 percent to $42 million, and non-GAAP
operating income grew 16 percent to $64 million, compared to Q4 of the
prior year.

“We’ve delivered our third consecutive year of double-digit growth in
constant currency and our highest fiscal year sales ever,” said Bracken
Darrell, Logitech president and chief executive officer. “Our
innovative, diverse product portfolio delivered, led by strong,
sustainable growth in our major categories of Gaming, Video
Collaboration, and Creativity & Productivity. And we are not just
growing topline, but also systematically delivering strong leverage on
the bottom line. In fact, we achieved our plan to double non-GAAP EPS to
$2.00 a full year early. Our strategy is working, and we are excited for
our future as the world’s leading cloud peripheral company.”

Outlook

Logitech confirmed its Fiscal Year 2020 outlook of mid to high
single-digit sales growth in constant currency and $375 million to $385
million in non-GAAP operating income.

Management Update

Additionally, Logitech announced today that Vincent Pilette, Logitech’s
chief financial officer, is leaving the Company. Vincent will leave, and
cease to be a member of the Group Management Team, at the end of May,
2019, to pursue a senior leadership role at another company. Logitech
has named Nate Olmstead interim chief financial officer following
Vincent’s departure. Nate joined Logitech in 2019 as vice president of
finance, and brings over 16 years of financial management experience,
most recently as the vice president of finance for global operations at
Hewlett Packard Enterprise. Nate has a BA from Stanford and an MBA from
Harvard.

“When I joined Logitech, I had a vision to turn Logitech into a design
company, pursuing opportunities in the many new market opportunities
enabled by the cloud,” said Bracken Darrell. “We needed financial and
operational strength to support the ambition of that vision. Vincent has
been a terrific partner for this pursuit these past six years, and we’ve
made great progress. But more important than his partnership and
leadership is the team he built and the culture of rigor and discipline
he helped instill throughout the company. We now have a strong, seasoned
finance team across every area and a proven track record of operational
excellence. That is his most important legacy. I’m excited for him in
his next challenge. And I’m even more energized by our continued
progress toward our design company vision.”

Prepared Remarks Available Online

Logitech has made its prepared written remarks for the financial results
teleconference available online on the Logitech corporate website at http://ir.logitech.com.

Financial Results Teleconference and Webcast

Logitech will hold a financial results teleconference to discuss the
results for Q4 and the full Fiscal Year 2019 on Tuesday, April 30, 2019
at 8:30 a.m. Eastern Daylight Time and 2:30 p.m. Central European Summer
Time. A live webcast of the call will be available on the Logitech
corporate website at http://ir.logitech.com.

Use of Non-GAAP Financial Information and Constant Currency

To facilitate comparisons to Logitech’s historical results, Logitech has
included non-GAAP adjusted measures, which exclude share-based
compensation expense, amortization of intangible assets, purchase
accounting effect on inventory, acquisition-related costs, change in
fair value of contingent consideration for business acquisition,
restructuring charges (credits), loss (gain) on investments in privately
held companies, non-GAAP income tax adjustment, and other items detailed
under “Supplemental Financial Information” after the tables below.
Logitech also presents percentage sales growth in constant currency to
show performance unaffected by fluctuations in currency exchange rates.
Percentage sales growth in constant currency is calculated by
translating prior period sales in each local currency at the current
period’s average exchange rate for that currency and comparing that to
current period sales. Logitech believes this information, used together
with the GAAP financial information, will help investors to evaluate its
current period performance and trends in its business. With respect to
the Company’s outlook for non-GAAP operating income, most of these
excluded amounts pertain to events that have not yet occurred and are
not currently possible to estimate with a reasonable degree of accuracy.
Therefore, no reconciliation to the GAAP amounts has been provided for
Fiscal Year 2020.

About Logitech

Logitech designs products that have an everyday place in people’s lives,
connecting them to the digital experiences they care about. More than 35
years ago, Logitech started connecting people through computers, and now
it’s a multi-brand company designing products that bring people together
through music, gaming, video and computing. Brands of Logitech include Logitech,
Ultimate
Ears, Jaybird,
Blue
Microphones, ASTRO
Gaming and Logitech
G. Founded in 1981, and headquartered in Lausanne, Switzerland,
Logitech International is a Swiss public company listed on the SIX Swiss
Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI). Find
Logitech at www.logitech.com,
the company
blog or @Logitech.

This press release contains forward-looking statements within the
meaning of the federal securities laws, including, without limitation,
statements regarding: our preliminary financial results for the three
months and full fiscal year ended March 31, 2019, innovation, product
portfolio, brand leadership, growth, profitability and leverage,
sustainability, market leadership, position for the future, focus,
vision ability to be a design company, outlook for Fiscal Year 2020
operating income and sales growth, and our executive officers. The
forward-looking statements in this release involve risks and
uncertainties that could cause Logitech’s actual results and events to
differ materially from those anticipated in these forward-looking
statements, including, without limitation: if our product offerings,
marketing activities and investment prioritization decisions do not
result in the sales, profitability or profitability growth we expect, or
when we expect it; if we fail to innovate and develop new products in a
timely and cost-effective manner for our new and existing product
categories; if we do not successfully execute on our growth
opportunities or our growth opportunities are more limited than we
expect; the effect of pricing, product, marketing and other initiatives
by our competitors, and our reaction to them, on our sales, gross
margins and profitability; if we are not able to maintain and enhance
our brands; if our products and marketing strategies fail to separate
our products from competitors’ products; if we do not fully realize our
goals to lower our costs and improve our operating leverage; if there is
a deterioration of business and economic conditions in one or more of
our sales regions or product categories, or significant fluctuations in
exchange rates; changes in trade policies and agreements and the
imposition of tariffs that affect our products or operations and our
ability to mitigate; risks associated with acquisitions. A detailed
discussion of these and other risks and uncertainties that could cause
actual results and events to differ materially from such forward-looking
statements is included in Logitech’s periodic filings with the
Securities and Exchange Commission, including our Annual Report on Form
10-K for the fiscal year ended March 31, 2018 and our Quarterly Report
on Form 10-Q for the fiscal quarter ended December 31, 2018, available
at www.sec.gov,
under the caption Risk Factors and elsewhere. Logitech does not
undertake any obligation to update any forward-looking statements to
reflect new information or events or circumstances occurring after the
date of this press release.

Note that unless noted otherwise, comparisons are year over year.

Logitech and other Logitech marks are trademarks or registered
trademarks of Logitech Europe S.A. and/or its affiliates in the U.S. and
other countries. All other trademarks are the property of their
respective owners. For more information about Logitech and its products,
visit the company’s website at www.logitech.com.


LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except per share amounts) – unaudited

	Three Months Ended					Fiscal Years Ended
	March 31,					March 31,
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS	2019		2018			2019			2018

Net sales ^(A)	$	624,308	$	592,426		$	2,788,322		$	2,566,863
Cost of goods sold	388,028		377,617			1,737,969			1,648,744
Amortization of intangible assets and purchase accounting effect on inventory	3,305		2,574			13,342			8,878
Gross profit	232,975		212,235			1,037,011			909,241
Operating expenses:
Marketing and selling	119,628		109,572			488,263			435,489
Research and development	42,110		37,616			161,230			143,760
General and administrative	23,557		23,387			98,732			96,353
Amortization of intangible assets and acquisition-related costs	3,913		2,553			14,290			8,930
Change in fair value of contingent consideration for business acquisition	—		—			—			(4,908		)
Restructuring charges (credits), net	1,540		—			11,302			(116		)
Total operating expenses	190,748		173,128			773,817			679,508
Operating income	42,227		39,107			263,194			229,733
Interest income	2,666		1,872			8,375			4,969
Other income (expense), net	493		(1,543		)	(436		)	(2,437		)
Income before income taxes	45,386		39,436			271,133			232,265
Provision for income taxes	3,265		5,032			13,560			23,723
Net income	$	42,121	$	34,404		$	257,573		$	208,542

Net income per share :
Basic	$	0.25	$	0.21		$	1.56		$	1.27
Diluted	$	0.25	$	0.20		$	1.52		$	1.23

Weighted average shares used to compute net income per share:
Basic	165,776		164,374			165,609			164,038
Diluted	168,956		169,387			168,965			168,971


LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) – unaudited

	March 31,			March 31,
CONDENSED CONSOLIDATED BALANCE SHEETS	2019			2018

Current assets:
Cash and cash equivalents	$	604,516		$	641,947
Accounts receivable, net^(A)	383,309			214,885
Inventories	293,495			259,906
Other current assets ^(A)	69,116			56,362
Total current assets	1,350,436			1,173,100
Non-current assets:
Property, plant and equipment, net	78,552			86,304
Goodwill	343,684			275,451
Other intangible assets, net	118,999			87,547
Other assets	132,453			120,755
Total assets	$	2,024,124		$	1,743,157

Current liabilities:
Accounts payable	$	283,922		$	293,988
Accrued and other current liabilities ^(A)	433,897			281,732
Total current liabilities	717,819			575,720
Non-current liabilities:
Income taxes payable	36,384			34,956
Other non-current liabilities	93,582			81,924
Total liabilities	847,785			692,600

Shareholders’ equity:
Registered shares, CHF 0.25 par value:	30,148			30,148
Issued shares—173,106 at March 31, 2019 and 2018
Additional shares that may be issued out of conditional capitals — 50,000 at March 31, 2019 and March 31, 2018
Additional shares that may be issued out of authorized capital — 34,621 at March 31, 2019 and none at March 31, 2018
Additional paid-in capital	56,655			47,234
Shares in treasury, at cost— 7,244 and 8,527 shares at March 31, 2019 and 2018, respectively	(169,802		)	(165,686		)
Retained earnings ^(A)	1,365,036			1,232,316
Accumulated other comprehensive loss	(105,698		)	(93,455		)
Total shareholders’ equity	1,176,339			1,050,557
Total liabilities and shareholders’ equity	$	2,024,124		$	1,743,157


LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) – unaudited
	Three Months Ended						Fiscal Years Ended
	March 31,						March 31,
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS	2019			2018			2019			2018

Cash flows from operating activities:
Net income	$	42,121		$	34,404		$	257,573		$	208,542
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	10,816			11,077			43,471			41,295
Amortization of intangible assets	6,944			4,954			24,180			15,607
Share-based compensation expense	13,102			10,899			50,265			44,138
Gain on investments	(227		)	(119		)	(816		)	(669		)
Deferred income taxes	(2,535		)	413			(12,257		)	7,141
Change in fair value of contingent consideration for business acquisition	—			—			—			(4,908		)
Other	148			(18		)	(230		)	(11		)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable, net	100,146			137,665			(58,798		)	(26,363		)
Inventories	47,612			21,739			(21,551		)	16,047
Other assets	2,298			2,045			(8,800		)	(16,908		)
Accounts payable	(152,791		)	(134,016		)	(19,134		)	17,695
Accrued and other liabilities	(35,896		)	1,134			51,278			44,655
Net cash provided by operating activities	31,738			90,177			305,181			346,261
Cash flows from investing activities:
Purchases of property, plant and equipment	(7,626		)	(12,155		)	(35,930		)	(39,748		)
Acquisitions, net of cash acquired	94			—			(133,814		)	(88,323		)
Investment in privately held companies	(175		)	(360		)	(2,717		)	(1,240		)
Proceeds from return of investments	124			—			124			237
Purchases of short-term investments	—			—			(1,505		)	(6,789		)
Sales of short-term investments	—			—			—			6,789
Purchases of trading investments	(868		)	(3,211		)	(5,203		)	(6,053		)
Proceeds from sales of trading investments	862			3,214			5,700			6,423
Net cash used in investing activities	(7,589		)	(12,512		)	(173,345		)	(128,704		)
Cash flows from financing activities:
Payment of cash dividends	—			—			(113,971		)	(104,248		)
Payment of contingent consideration for business acquisition	—			—			—			(5,000		)
Purchases of registered shares	(9,995		)	(10,314		)	(32,449		)	(30,722		)
Proceeds from exercises of stock options and purchase rights	7,922			10,963			18,057			41,910
Tax withholdings related to net share settlements of restricted stock units	(1,659		)	(4,308		)	(30,770		)	(29,813		)
Net cash used in financing activities	(3,732		)	(3,659		)	(159,133		)	(127,873		)
Effect of exchange rate changes on cash and cash equivalents	(389		)	3,053			(10,134		)	4,730
Net increase (decrease) in cash and cash equivalents	20,028			77,059			(37,431		)	94,414
Cash and cash equivalents at beginning of the period	584,488			564,888			641,947			547,533
Cash and cash equivalents at end of the period	$	604,516		$	641,947		$	604,516		$	641,947


LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) – unaudited

NET SALES	Three Months Ended						Fiscal Years Ended
	March 31,						March 31,
SUPPLEMENTAL FINANCIAL INFORMATION	2019		2018		Change		2019		2018		Change

Net sales by product category:
Pointing Devices	$	131,640	$	129,937	1	%	$	536,890	$	516,637	4	%
Keyboards & Combos	132,356		136,787		(3	)	536,619		498,472		8
PC Webcams	30,366		31,776		(4	)	121,282		112,147		8
Tablet & Other Accessories	23,412		27,292		(14	)	128,315		107,942		19
Video Collaboration	69,367		54,709		27		259,521		182,717		42
Mobile Speakers	22,688		13,974		62		230,378		314,817		(27	)
Audio & Wearables	65,086		55,248		18		277,429		252,330		10
Gaming	137,649		126,763		9		648,130		491,995		32
Smart Home	11,515		15,892		(28	)	49,344		89,373		(45	)
Other ⁽¹⁾	229		48		377		414		433		(4	)
Total net retail sales	$	624,308	$	592,426	5		$	2,788,322	$	2,566,863	9
__________________

(1)		Other category includes products that we currently intend to transition out of, or have already transitioned out of, because they are no longer strategic to our business.


LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except per share amounts) – Unaudited

GAAP TO NON GAAP RECONCILIATION ^(A)(B)	Three Months Ended						Fiscal Years Ended
	March 31,						March 31,
SUPPLEMENTAL FINANCIAL INFORMATION	2019			2018			2019			2018

Gross profit – GAAP	$	232,975		$	212,235		$	1,037,011		$	909,241
Share-based compensation expense	938			971			3,812			3,733
Amortization of intangible assets and purchase accounting effect on inventory	3,305			2,574			13,342			8,878
Gross profit – Non-GAAP	$	237,218		$	215,780		$	1,054,165		$	921,852

Gross margin – GAAP	37.3		%	35.8		%	37.2		%	35.4		%
Gross margin – Non-GAAP	38.0		%	36.4		%	37.8		%	35.9		%

Operating expenses – GAAP	$	190,748		$	173,128		$	773,817		$	679,508
Less: Share-based compensation expense	12,164			9,928			46,453			40,405
Less: Amortization of intangible assets and acquisition-related costs	3,913			2,553			14,290			8,930
Less: Change in fair value of contingent consideration for business acquisition	—			—			—			(4,908		)
Less: Restructuring charges (credits), net	1,540			—			11,302			(116		)
Operating expenses – Non-GAAP	$	173,131		$	160,647		$	701,772		$	635,197

% of net sales – GAAP	30.6		%	29.2		%	27.8		%	26.5		%
% of net sales – Non – GAAP	27.7		%	27.1		%	25.2		%	24.7		%

Operating income – GAAP	$	42,227		$	39,107		$	263,194		$	229,733
Share-based compensation expense	13,102			10,899			50,265			44,138
Amortization of intangible assets	6,944			4,954			24,180			15,607
Purchase accounting effect on inventory	34			173			1,756			789
Acquisition-related costs	240			—			1,696			1,412
Change in fair value of contingent consideration for business acquisition	—			—			—			(4,908		)
Restructuring charges (credits), net	1,540			—			11,302			(116		)
Operating income – Non – GAAP	$	64,087		$	55,133		$	352,393		$	286,655

% of net sales – GAAP	6.8		%	6.6		%	9.4		%	8.9		%
% of net sales – Non – GAAP	10.3		%	9.3		%	12.6		%	11.2		%

Net income – GAAP	$	42,121		$	34,404		$	257,573		$	208,542
Share-based compensation expense	13,102			10,899			50,265			44,138
Amortization of intangible assets	6,944			4,954			24,180			15,607
Purchase accounting effect on inventory	34			173			1,756			789
Acquisition-related costs	240			—			1,696			1,412
Change in fair value of contingent consideration for business acquisition	—			—			—			(4,908		)
Restructuring charges (credits), net	1,540			—			11,302			(116		)
Gain on investments	(227		)	(119		)	(816		)	(669		)
Non-GAAP income tax adjustment	830			4,249			(6,952		)	6,282
Net income – Non – GAAP	$	64,584		$	54,560		$	339,004		$	271,077

Net income per share:
Diluted – GAAP	$	0.25		$	0.20		$	1.52		$	1.23
Diluted – Non – GAAP	$	0.38		$	0.32		$	2.01		$	1.60

Shares used to compute net income per share:
Diluted – GAAP and Non – GAAP	168,956			169,387			168,965			168,971


LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) – unaudited

SHARE-BASED COMPENSATION EXPENSE	Three Months Ended						Fiscal Years Ended
	March 31,						March 31,
SUPPLEMENTAL FINANCIAL INFORMATION	2019			2018			2019			2018

Share-based Compensation Expense
Cost of goods sold	$	938		$	971		$	3,812		$	3,733
Marketing and selling	5,380			4,417			20,630			17,765
Research and development	2,073			1,584			7,368			6,381
General and administrative	4,711			3,927			18,455			16,259
Total share-based compensation expense	13,102			10,899			50,265			44,138
Income tax benefit	(2,515		)	(4,077		)	(17,091		)	(15,998		)
Total share-based compensation expense, net of income tax benefit	$	10,587		$	6,822		$	33,174		$	28,140

*Note: These preliminary results for the three months and fiscal year
ended March 31, 2019 are subject to adjustments, including subsequent
events that may occur through the date of filing our Annual Report on
Form 10-K.

(A) Adoption of ASC Topic 606

On April 1, 2018, we adopted the new revenue standards under Accounting
Standards Codification (“ASC”) Topic 606. The adoption of Topic 606 did
not have an impact over the total cash flows from operating, investing,
or financing activities. The following tables summarize the impacts of
adopting Topic 606 on our condensed consolidated statements of
operations for the three months and fiscal year ended March 31, 2019 and
condensed consolidated balance sheets as of March 31, 2019 (in
thousands):


	Three Months Ended March 31, 2018							Year Ended March 31, 2019
	As Reported Under Topic 606		If Reported Under Topic 605		Effect of Change			As Reported Under Topic 606		If Reported Under Topic 605 Advertisement		Effect of Change
Net sales	$	624,308	$	626,369	$	(2,061	)	$	2,788,322	$	2,784,636	$	3,686


	As of March 31, 2019
	As Reported Under Topic 606		Balance Under Topic 605		Effect of Change
Accounts receivable, net	$	383,309	$	260,401	$	122,908
Other current assets	$	69,116	$	60,449	$	8,667
Accrued and other current liabilities	$	433,897	$	295,126	$	138,771
Retained earnings	$	1,365,036	$	1,372,232	$	(7,196	)

(B) Non-GAAP Financial Measures

To supplement our condensed consolidated financial results prepared in
accordance with GAAP, we use a number of financial measures, both GAAP
and non-GAAP, in analyzing and assessing our overall business
performance, for making operating decisions and for forecasting and
planning future periods. We consider the use of non-GAAP financial
measures helpful in assessing our current financial performance, ongoing
operations and prospects for the future as well as understanding
financial and business trends relating to our financial condition and
results of operations.

While we use non-GAAP financial measures as a tool to enhance our
understanding of certain aspects of our financial performance and to
provide incremental insight into the underlying factors and trends
affecting both our performance and our cash-generating potential, we do
not consider these measures to be a substitute for, or superior to, the
information provided by GAAP financial measures. Consistent with this
approach, we believe that disclosing non-GAAP financial measures to the
readers of our financial statements provides useful supplemental data
that, while not a substitute for GAAP financial measures, can offer
insight in the review of our financial and operational performance and
enables investors to more fully understand trends in our current and
future performance. In assessing our business during the quarter ended
March 31, 2019 and previous periods, we excluded items in the following
general categories, each of which are described below:

Share-based compensation expenses. We believe that providing
non-GAAP measures excluding share-based compensation expense, in
addition to the GAAP measures, allows for a more transparent comparison
of our financial results from period to period. We prepare and maintain
our budgets and forecasts for future periods on a basis consistent with
this non-GAAP financial measure. Further, companies use a variety of
types of equity awards as well as a variety of methodologies,
assumptions and estimates to determine share-based compensation expense.
We believe that excluding share-based compensation expense enhances our
ability and the ability of investors to understand the impact of
non-cash share-based compensation on our operating results and to
compare our results against the results of other companies.

Amortization of intangible assets. We incur intangible asset
amortization expense, primarily in connection with our acquisitions of
various businesses and technologies. The amortization of purchased
intangibles varies depending on the level of acquisition activity. We
exclude these various charges in budgeting, planning and forecasting
future periods and we believe that providing the non-GAAP measures
excluding these various non-cash charges, as well as the GAAP measures,
provides additional insight when comparing our gross profit, operating
expenses, and financial results from period to period.

Contacts

Ben Lu
Vice President, Investor Relations – USA
+1 (510)
713-5568

Krista Todd
Vice President, Global Communications – USA
+1
(510) 713-5834

Ben Starkie
Corporate Communications – Europe
+41 (0)
79-292-3499

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IMC Germany Announces Outstanding Preliminary Q3, 2024 Performance with 50% Growth Over Q2

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1 day ago

October 2, 2024

CISION (PR Newswire)

imc-germany-announces-outstanding-preliminary-q3,-2024-performance-with-50%-growth-over-q2

TORONTO and GLIL YAM, Israel, Oct. 2, 2024 /PRNewswire/ — IM Cannabis Corp. (CSE: IMCC) (NASDAQ: IMCC) (the “Company“, “IMCannabis“, or “IMC“), a leading medical cannabis company with operations in Israel and Germany, is pleased to announce that the preliminary sales results in Germany by its German subsidiary, Adjupharm GmbH (“IMC Germany“), for the third quarter of 2024 have significantly exceeded expectations, showing a remarkable 50% increase in revenue compared to the second quarter, where IMC Germany sold about CAD$ 3.5M. This outstanding growth demonstrates IMC Germany’s successful execution of its strategic initiatives and strong market demand for its products.

Since the partial legalization of cannabis in Germany came into effect in April 2024, the demand for cannabis products in pharmacies has increased significantly, emphasizing the importance of a robust, reliable supply chain.

“Since April 1^st, one of our key objectives was to ensure a supply chain strong enough to meet the increase in demand. This preliminary 50% growth is testament, in part, to delivering on this objective,” said Oren Shuster, CEO of IMC. “We are thrilled with our Q3 performance, which not only surpassed our own targets but also highlights the dedication and hard work of our entire team.”

About IM Cannabis Corp.

IMC (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 focused its 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, distribution centers, 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.

Disclaimer for Forward-Looking Statements

This press release contains forward-looking information or forward-looking statements under applicable Canadian and U.S. 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 statements relating to compliance with Nasdaq’s continued listing requirements, and timing and effect thereof; the potential outcome of the Licensing Agreement and the effect of collaboration with Carmel in the Israeli market and the potential exclusive launch of the BLKMKT^TM brand this year in Germany.

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 and war, conflict and civil unrest in Eastern Europe and the Middle East.

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.

CAUTIONARY NOTE REGARDING FUTURE ORIENTED FINANCIAL INFORMATION

This press release may contain future oriented financial information (“FOFI”) within the meaning of Canadian securities legislation, about prospective results of operations, financial position or cash flows, based on assumptions about future economic conditions and courses of action, which FOFI is not presented in the format of a historical balance sheet, income statement or cash flow statement.

The FOFI has been prepared by management to provide an outlook of the Company’s activities and results and has been prepared based on a number of assumptions including the assumptions discussed under the heading above entitled “Cautionary Note Regarding Future Oriented Financial Information” and assumptions with respect to the costs and expenditures to be incurred by the Company, capital expenditures and operating costs, taxation rates for the Company and general and administrative expenses. Management does not have, or may not have had at the relevant date, firm commitments for all of the costs, expenditures, prices or other financial assumptions which may have been used to prepare the FOFI or assurance that such operating results will be achieved and, accordingly, the complete financial effects of all of those costs, expenditures, prices and operating results are not, or may not have been at the relevant date of the FOFI, objectively determinable.

Importantly, the FOFI contained in this press release and the documents incorporated by reference herein, are, or may be, based upon certain additional assumptions that management believes to be reasonable based on the information currently available to management, including those assumptions discussed under the heading “Disclaimer for Forward-Looking Statements” and assumptions about: (i) the future pricing for the Company’s products, (ii) the future market demand and trends within the jurisdictions in which the Company may from time to time conduct the Company’s business, and (iii) the Company continued ability to maintain its capital to fund its ongoing business development and future growth.

The FOFI or financial outlook contained in this press release do not purport to present the Company’s financial condition in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, and there can be no assurance that the assumptions made in preparing the FOFI will prove accurate. The actual results of operations of the Company and the resulting financial results will likely vary from the amounts set forth in the analysis presented in any such document, and such variation may be material (including due to the occurrence of unforeseen events occurring subsequent to the preparation of the FOFI). The Company and management believe that the FOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgments as at the applicable date. However, because this information is highly subjective and subject to numerous risks including the risks discussed under the heading above entitled “Cautionary Note Regarding Future Oriented Financial Information”, FOFI or financial outlook within this in this press release should not be relied on as necessarily indicative of future results.

Company Contact:

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

Oren Shuster, CEO
IM Cannabis Corp.
[email protected]

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Gedeon

Gedeon Richter presents analysis on cannabis usage among patients with schizophrenia: a new medical solution to a severe issue might be available

Published

1 week ago

September 25, 2024

CISION (PR Newswire)

A novel psychiatric scale developed by colleagues of Gedeon Richter Plc. in collaboration with academia was also presented at the 37^th ECNP conference

BUDAPEST, Hungary, Sept. 25, 2024 /PRNewswire/ — During the 37^th Annual Meeting of the European College of Neuropsychopharmacology (ECNP), held between 21-24 September 2024, new analyses of cariprazine studies were presented by Gedeon Richter Plc. First of all, cariprazine seems to be an effective treatment option for patients with schizophrenia and comorbid cannabis use disorder, according to one of the five posters presented at the congress. Furthermore, during an industry sponsored session, a new transdiagnostic scale for quantifying and visualizing symptom severity of patients with different psychiatric conditions was also presented, that was developed by the medical team of Gedeon Richter Plc. and recognized professors.

Schizophrenia often co-occurs with cannabis use disorder however, available antipsychotic treatments frequently fail to address both disorders. In a scientific poster showcased by Gedeon Richter at ECNP in Milan, cariprazine was presented to be a potentially effective treatment option for patients with first-episode schizophrenia and comorbid cannabis use disorder according to the results of a 6-month observational study. Four other scientific posters were also presented at the congress by Gedeon Richter about the role of cariprazine in the treatment of schizophrenia such as the efficacy of cariprazine in patients who develop akathisia as a side effect or the impact of functioning on the risk of relapse in patients treated with cariprazine vs placebo. Cariprazine is a 3^rd generation antipsychotic medication with a unique receptor profile and proven efficacy in schizophrenia, including negative symptoms.

Lacking biomarkers in psychiatry calls for valid and reliable assessments of psychopathology across mental disorders that are easy to use, bridge research and clinical care, and that can capture clinician and patient perspectives. Recognizing this problem, the Gedeon Richter medical team together with experienced psychiatric professors developed a scale to handle this challenge. Using this new transdiagnostic scale called the Transdiagnostic Global Impression – Psychopathology (TGI-P) scale could help CNS professionals and psychologists to quickly assess and visualize symptoms in several psychiatric conditions. During an industry sponsored session, the details and the usability of the tool were shown to the audience.

About Richter and About Cariprazine

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Cannabis

Bioplastic Packaging Market Size Expected to Reach USD 87.98 Bn by 2033

Published

2 weeks ago

September 20, 2024

GlobeNewswire

Ottawa, Sept. 20, 2024 (GLOBE NEWSWIRE) — The global bioplastic packaging market size was valued at USD 17.99 billion in 2023 and is predicted to increase from USD 21.09 billion in 2024 to USD 87.98 billion by 2033, a study published by Towards Packaging a sister firm of Precedence Statistics.

Key Takeaways: Leading Factors of the Bioplastic Packaging Market

Use of renewable resources due to growing sustainable demand is the major factor that drives the market.
Eco-friendly alternatives perceive growth in North America due to growing environmental concerns.
Food and beverage industry is the dominating sector in the market due to the increasing consumption of packed food.
Limited infrastructure for bioplastic processing is an unceasing challenge for the market.

Download Statistical Data: https://www.towardspackaging.com/download-statistics/5215

Bioplastic Packaging Market: At a Glance

The bioplastic packaging market revolves around adoption renewable packaging which can be used multiple times and which is an alternative to the fossil fuel-derived plastics. Along with this, resource depletion, reduction of carbon footprint and material waste are the leading objectives of the market. The demand for sustainable packaging solution and the increasing plastic waste has increased the demand of the market.

The bio-degradable feature attributes to the reusable function of bioplastic packaging. The consumer demand for sustainable packaging has also increased the demand of the bioplastic packaging, given the reason it provides resistance and prevents denting as well. The bioplastic material tends to degrade easily which also reduces landfill waste.

Regional Insights

Europe thrives with its vision of sustainable packaging demand

Europe is the dominating region in bioplastic packaging market. The sustainability focus of Europeans has sustained the environment and the alternative packaging solutions have increased the popularity of eco-friendly packaging. The European vision of preserving sustainability is also about turning packaging materials into recyclable or reusable material by 2030 and this has increased exploration of alternative materials, design strategies and mostly importantly waste management system.

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Europe targets to reduce unnecessary packaging by 10% in 2035 and by 15% in 2040. The demand for bioplastic as an alternative increase as Europe has strict regulations against plastic usage which aims to reduce the utilization of single use-plastic to prevent environmental hazards, especially, in marine environment and human health. In addition, European Union also aims at promoting circular economy and innovative sustainable packaging solutions with specific targets which are 77% separate collection target for plastic bottles by 2025 and will be increased to 90% by 2029. Furthermore, 25% of recycled plastic will be incorporated in PET beverage bottles from 2025 and will be increased by 30% in all plastic beverage bottles from 2030.

In January 2024, European retailers were relived to watch the inflation slow down as it had decreased the consumer rate by 0.1%. Despite the increasing rates and fleeting number of consumers, shopkeepers were committed to the sustainable drive. The UK consumer survey stated that 62% believed that high prices are pulling them back from being sustainable and 52% said that sustainable alternatives should have affordable prices.

North America is a steady region for the bioplastic packaging market due to its sustainable packaging demand which is also the growing consumer requirement. The impact of conventional plastic adds to the ocean litter hazard and as an alternative to reduce carbon print, sustainable solutions are being adopted. Although the American consumers worry more about convenience, price and quality given the increased purchasing rates and the tax-paying lifestyle, 40% of consumers pay more attention to the provided sustainable packaging.

The use of compostable packaging allows circular economy in the US and the companies are innovating new alternatives to support the sustainable drive and to increase their profit margin. According to U.S Environmental Protection Agency, reuse of plastic materials circulates the economy and reduces environmental impact if the material is in constant use instead of manufacturing new one. According to PEW’s research, reuse of plastics can accomplish 30% of reduction, substitution efforts by 17%, improved innovations in recycling by 20% and proper management at end-of-life can achieve a 23% reduction of plastic pollution in the environment.

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In November 2023, Knox County, a startup had announced the of AgroRenew LLC and had also planned to build $83 million processing facility which was designed to convert food waste into eco-friendly bioplastics. The company had expected to establish itself in early 2024 and had aimed to produce 150,000 tons of bioplastic annually.

Asia-Pacific is the fastest growing region in bioplastic packaging market with its large population as a contributor and its rapidly increasing industrial sector. The packed food consumption and the boom of e-commerce also gave preference to sustainable packaging due to strict regulations and subsidies provided to promote the compostable packaging. According to Department of Biotechnology, Ministry of Science & Technology, Government of India, the usage of single-use plastic (SUPs) was intended to stop by December 2022. The policy of Government of India (GOI) was changed to promote the development of biodegradable plastic products instead of single-use plastic.

The method used for testing substances should be able to demonstrate biodegradability as per national and international standards and should also be interim approved and receive provisional certification of biodegradability. China having a large industrial production had signed the Paris agreement to reduce carbon footprint and oil dependency as well.

Although the National Development and Reform Commission and Ministry of Ecology and Environment had plans to reduce plastic garbage, the limited infrastructure for recycling and manufacturing biodegradable plastic came as a challenge. The Chinese Government had implemented ban on plastic recycled and prohibition of non-biodegradable single-use plastic.

In February 2024, Balrampur Chini Mills Limited (BCML), which is a leading integrated sugar mill Kolkata-based company had announced a project with integration of ₹2,000 crore and it was going be the first industrial bioplastic plant in India. The company also stated that it had well-aligned sustainable goals to combat the climate change.

Driver

Government regulations drive the bioplastic packaging market

The major driving factor is the environmental regulations due to increasing plastic waste production which is a problem for the eco-system. The growing concern for climate change, increasing plastic pollution and landfill waste has led to the utilization of bioplastic packaging which is reliable and bio-degradable. The government policies promote the use of biodegradable and bioplastic packaging as it reduces the use of plastic and also its generation.

The government initiatives will increase sales, improve brand perception and also contribute to cost-savings. According to the Consumer Brands Association, FMCG manufacturers have adopted 100% recycled packaging by 2030.

Restraint

Limited infrastructure and higher costs of materials hinder the market growth

The leading challenges which hinder the growth of bioplastic packaging market is high material costs and limited infrastructure. The manufacturing process and raw materials can affect the production of biodegradable packaging. The limited infrastructure also poses as a challenge for the manufacturing and recycling processes.

Opportunity

Integration of Artificial Intelligence

The technological advancement offers new trends which are development of raw materials like algae, mushroom mycelium, and agricultural waste which poses as an emerging alternative. The major factor which technology can contribute is in biodegradability which will enhance the decomposing process of plastic and it also offers upcoming features like the antimicrobial properties which are significant for medical applications, use of UV resistance for outdoor use, and improved barrier properties for food packaging. Collaboration among leading industries can create more innovate and ground-breaking effective solutions for the bioplastic packaging market.

Top Companies Leading the Bioplastic Packaging Market

Amcor plc
Novamont S.p.A
NatureWorks, LLC
Coveris
Sealed Air
Alpha Packaging
Constantia Flexibles Group GmbH
Mondi plc
Truegreen
Transcontinental Inc.
ALPLA
Envigreen
Nature’s Bio Plastic
Raepak Ltd.
Tipa-corp Ltd.
Treemera GmbH
Element Packaging Ltd
Alpagro Packaging

Recent Development

Company	Balrampur Sugar Mills Firm
Headquarters	Uttar Pradesh, India
Recent Development	In June 2024, the Uttar Pradesh Government had announced to build a bioplastic park in the Lakhimpur Kheri district which aimed at increasing local economy. The bioplastic park was designed to promotes the usage of bioplastic plastics.

Company	Praj Industries
Headquarters	Maharashtra
Recent Development	In February 2024, Praj Industries had announced that its pilot plant for polylactic acid (PLA) will be completed by April 2024. The company will develop renewable chemicals which is a part of R&D push. The Union Budget had also contemplated a policy for bio-manufacturing and bio foundry.

Segmental Insights

By Type

The flexible segment is the dominating segment in the bioplastic packaging market. It is dominating due to its properties which are conserving resources and contributing to the sustainability. The flexible segment provides convenience, strong protection and reduces wastage of food and can also resist denting and breakage. Apart from this, it also increases shelf life of the products and the packaging is in demand due to its features like multi-layer construction and eco-friendly packaging solution. Lightness, safety and resistance are the factors which increase the demand of bioplastic packaging.

The rigid segment is the fastest growing segment in the bioplastic packaging market. It will dominate the market due to its properties which are providing protection, resistance and preserving product quality. The rigid segment offers a durable and reliable packaging which makes it preferred among the consumers. Customization and exceptional product protection are the essential features of the rigid segment.

By Application Type

The food and beverage segment are the dominating segment in the bioplastic packaging market. The segment dominates due extended shelf life provided to the food products and long-lasting convenience and visibility. The bioplastic packaging depends upon the type of packaging it provides which provides string barrier against external elements like oxygen, moisture and prevents food spoilage as well. Th global consumption of containers like boxes, bags, jars and pouches has increased the bioplastic packaging demand in food sector.

The consumer and goods segment are the fastest growing segment in the bioplastic films packaging market. The segment dominates due to sealed packaging and robust protection by bioplastic packaging.

More Insights of Towards Packaging

The global end-of-line packaging market size is estimated to reach USD 9.50 billion by 2033, up from USD 6.14 billion in 2023, at a compound annual growth rate (CAGR) of 4.60% from 2024 to 2033.
The global surgical instruments packaging market size reached US$ 24.8 billion in 2023 and is projected to hit around US$ 49.1 billion by 2034, expanding at a CAGR of 6.55% during the forecast period from 2024 to 2033.
The global cannabis packaging market size reached USD 2.32 billion in 2023 and is projected to hit around USD 22.10 billion by 2034, expanding at a CAGR of 22.74% during the forecast period from 2024 to 2034.
The global clinical trial packaging market size reached USD 2.95 billion in 2023 and is projected to hit around USD 9.12 billion by 2034, expanding at a CAGR of 10.80% during the forecast period from 2024 to 2033.
The global panel level packaging market size is estimated to reach USD 11.13 billion by 2033, up from USD 0.43 billion in 2023, at a compound annual growth rate (CAGR) of 38.60% from 2024 to 2033.
The global hazardous goods packaging market size reached US$ 11.50 billion in 2023 and is projected to hit around US$ 21.38 billion by 2034, expanding at a CAGR of 5.80% during the forecast period from 2024 to 2033.
The global rigid tray market size reached US$ 11.65 billion in 2024 and is projected to hit around US$ 14.72 billion by 2034, expanding at a CAGR of 2.37% during the forecast period from 2024 to 2034.
The global cider packaging market size is estimated to reach USD 7.05 billion by 2033, up from USD 4.08 billion in 2023, at a compound annual growth rate (CAGR) of 5.77% from 2024 to 2033.
The global boxboard packaging market size is estimated to reach USD 117.61 billion by 2033, up from USD 65.73 billion in 2023, at a compound annual growth rate (CAGR) of 6.12% from 2024 to 2033.
The global corrugated plastic tray market size reached US$ 665.47 million in 2023 and is projected to hit around US$ 1190.73 million by 2034, expanding at a CAGR of 5.14% during the forecast period from 2024 to 2034.

Bioplastic Packaging Market Segment

By Material

Biodegradable
- Polylactic Acid
- Starch Blends
- Polybutylene Adipate Terephthalate (PBAT)
- Polybutylene Succinate (PBS)
- Others
Non-biodegradable
- Bio Polyethylene
- Bio Polyethylene Terephthalate
- Bio Polyamide
- Others

By Type

Flexible
Rigid

By Application

Food & Beverages
Consumer Goods
Cosmetic & Personal Care
Pharmaceuticals
Others

By Region

North America
- U.S.
- Canada
Europe
- Germany
- UK
- France
- Italy
- Spain
- Sweden
- Denmark
- Norway
Asia Pacific
- China
- Japan
- India
- South Korea
- Thailand
Latin America
- Brazil
- Mexico
- Argentina
Middle East and Africa (MEA)
- South Africa
- UAE
- Saudi Arabia
- Kuwait

View Bioplastic Packaging Market Full TOC: https://www.towardspackaging.com/table-of-content/bioplastic-packaging-market-sizing

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