Insight Enterprises, Inc. Reports Strong First Quarter 2019 Results

Published

5 years ago

May 1, 2019

Reading Time: 13 minutes

TEMPE, Ariz.–(BUSINESS WIRE)–Insight Enterprises, Inc. (NASDAQ: NSIT) (the “Company”) today
reported financial results for the quarter ended March 31, 2019 compared
to the quarter ended March 31, 2018.

Gross profit increased 3% to $248.5 million
Gross margin increased 90 basis points to 14.7%
Earnings from operations increased 13% to $57.0 million
Diluted earnings per share of $1.09 increased 20% year over year

In the first quarter of 2019, net sales decreased by 3%, year to year,
while gross profit increased 3%, year over year and gross margin
increased 90 basis points compared to the first quarter of 2018. The
increase in gross profit and gross margin reflects a higher mix of cloud
solutions reported net and higher margin Insight delivered services.
Earnings from operations grew 13%, year over year, with each of our
geographic segments generating growth.

“I am pleased to report we have started the new year with strong
earnings performance in the first quarter,” stated Ken Lamneck,
President and Chief Executive Officer. “Our top line results decreased
in the first quarter against a tough comparison last year, but we
focused on profitable business, growing our services sales and helping
our clients migrate to the cloud, which led to strong gross margin
expansion in the quarter. At the same time we controlled our expenses,
which allowed us to deliver another quarter of double digit earnings
growth year over year, with each of our operating segments contributing
to these results,” stated Lamneck.

KEY HIGHLIGHTS

Consolidated net sales for the first quarter of 2019 of $1.69 billion
decreased 3% year to year when compared to the first quarter of 2018.
- Net sales in North America decreased 3% year to year to $1.24
  billion;
- Net sales in EMEA decreased 4% year to year to $390.2 million; and
- Net sales in APAC decreased 7% year to year to $52.9 million.
Excluding the effects of fluctuating foreign currency exchange rates,
consolidated net sales decreased 1% year to year, with a decline in
net sales in North America of 3%, year to year, partially offset by
growth in net sales in EMEA and APAC of 2% and 1%, respectively, year
over year.
Consolidated gross profit increased 3% compared to the first quarter
of 2018 to $248.5 million, with consolidated gross margin expanding 90
basis points to 14.7% of net sales.
- Gross profit in North America increased 4% year over year to
  $182.6 million (14.7% gross margin);
- Gross profit in EMEA increased 2% year over year to $57.0 million
  (14.6% gross margin); and
- Gross profit in APAC was relatively flat year over year,
  increasing less than 1% to $8.9 million (16.8% gross margin).
Excluding the effects of fluctuating foreign currency exchange rates,
consolidated gross profit increased 6% year over year, with gross
profit growth in North America, EMEA and APAC of 4%, 9% and 9%,
respectively, year over year.
Consolidated earnings from operations increased 13% compared to the
first quarter of 2018 to $57.0 million, or 3.4% of net sales.
- Earnings from operations in North America increased 7% year over
  year to $45.3 million, or 3.6% of net sales;
- Earnings from operations in EMEA increased 48% year over year to
  $9.9 million, or 2.5% of net sales; and
- Earnings from operations in APAC increased 23% year over year to
  $1.8 million, or 3.4% of net sales.
Excluding the effects of fluctuating foreign currency exchange rates,
consolidated earnings from operations increased 14% year over year,
with earnings from operations growth in North America, EMEA and APAC
of 8%, 53% and 31%, respectively, year over year.
Consolidated net earnings and diluted earnings per share for the first
quarter of 2019 were $39.3 million and $1.09, respectively, at an
effective tax rate of 23.5%.
Adjusted consolidated net earnings and Adjusted diluted earnings per
share for the first quarter of 2019 were $39.6 million and $1.10,
respectively.

In discussing financial results for the three months ended March 31,
2019 and 2018 in this press release, the Company refers to certain
financial measures that are not prepared in accordance with United
States generally accepted accounting principles (“GAAP”). When referring
to non-GAAP measures, the Company refers to such measures as “Adjusted.”
See “Use of Non-GAAP Financial Measures” for additional information. A
tabular reconciliation of financial measures prepared in accordance with
GAAP to the non-GAAP financial measures is included at the end of this
press release.

In some instances the Company refers to changes in net sales, gross
profit and earnings from operations on a consolidated basis and in North
America, EMEA and APAC excluding the effects of fluctuating foreign
currency exchange rates. In computing these changes and percentages, the
Company compares the current year amount as translated into U.S. dollars
under the applicable accounting standards to the prior year amount in
local currency translated into U.S. dollars utilizing the weighted
average translation rate for the current period.

The tax effect of Adjusted amounts referenced herein were computed using
the statutory tax rate for the taxing jurisdictions in the operating
segment in which the related expenses were recorded, adjusted for the
effects of valuation allowances on net operating losses in certain
jurisdictions.

GUIDANCE

For the full year 2019, the Company expects to deliver sales growth in
the low single digit range compared to 2018. The Company also expects
Adjusted diluted earnings per share for the full year of 2019 to be
between $4.75 and $4.85.

This outlook assumes:

an effective tax rate of 25% to 26% for the balance of 2019;
capital expenditures of $20 to $25 million for the full year; and
an average share count for the full year of approximately 36.2 million
shares.

This outlook does not reflect the repurchase of any shares under the
Company’s currently authorized share repurchase program, assumes no
current year acquisition-related expenses and excludes severance and
restructuring expenses incurred during the first quarter of 2019 and
those that may be incurred during the balance of 2019. Due to the
inherent difficulty of forecasting these types of expenses, which impact
net earnings and diluted earnings per share, the Company is unable to
reasonably estimate the related impact of such expenses, if any, to net
earnings and diluted earnings per share. Accordingly, the Company is
unable to provide a reconciliation of GAAP to non-GAAP diluted earnings
per share for the full year 2019 forecast.

CONFERENCE CALL AND WEBCAST

The Company will host a conference call and live web cast today at 8:00
a.m. ET to discuss first quarter 2019 results of operations. A live web
cast of the conference call (in listen-only mode) will be available on
the Company’s web site at http://investor.insight.com/,
and a replay of the web cast will be available on the Company’s web site
for a limited time following the call. To listen to the live web cast by
telephone, call 1-877-524-8416 if located in the U.S., 412-902-1028 for
international callers, and enter the access code 13689759.

USE OF NON-GAAP FINANCIAL MEASURES

The non-GAAP financial measures are referred to as “Adjusted.” Adjusted
consolidated earnings from operations, Adjusted consolidated net
earnings and Adjusted diluted earnings per share exclude (i) severance
and restructuring expenses and (ii) the tax effects of severance and
restructuring expenses. The Company excludes these items when internally
evaluating earnings from operations, tax expense, net earnings and
diluted earnings per share for the Company and earnings from operations
for each of the Company’s operating segments. Adjusted free cash flow is
the Company’s net cash provided or used by operating activities adjusted
for (i) purchases of property and equipment and (ii) the net borrowings
or repayments under the inventory financing facility. Adjusted return on
invested capital (“ROIC”) excludes (i) severance and restructuring
expenses, (ii) acquisition related expenses, (iii) loss on sale of the
Company’s Russia business, and (iv) the tax effects of each of these
items, as applicable.

These non-GAAP measures are used to evaluate financial performance
against budgeted amounts, to calculate incentive compensation, to assist
in forecasting future performance and to compare the Company’s results
to those of the Company’s competitors. The Company believes that these
non-GAAP financial measures are useful to investors because they allow
for greater transparency, facilitate comparisons to prior periods and
the Company’s competitors’ results and assist in forecasting performance
for future periods. These non-GAAP financial measures are not prepared
in accordance with GAAP and may be different from non-GAAP financial
measures presented by other companies. Non-GAAP financial measures
should not be considered as a substitute for, or superior to, measures
of financial performance prepared in accordance with GAAP.


FINANCIAL SUMMARY TABLE Advertisement (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)

	Three Months Ended March 31,
	2019			2018			change
Insight Enterprises, Inc.
Net sales:
Products	$	1,466,672		$	1,557,792		(6%)
Services	$	218,794		$	184,702		18%
Total net sales	$	1,685,466		$	1,742,494		(3%)
Gross profit	$	248,472		$	240,263		3%
Gross margin		14.7	%		13.8	%	90 bps
Selling and administrative expenses	$	191,063		$	188,180		2%
Severance and restructuring expenses	$	370		$	1,644		(77%)
Earnings from operations	$	57,039		$	50,439		13%
Net earnings	$	39,327		$	33,003		19%
Diluted earnings per share	$	1.09		$	0.91		20%

North America
Net sales:
Products	$	1,070,416		$	1,134,401		(6%)
Services	$	172,025		$	143,979		19%
Total net sales	$	1,242,441		$	1,278,380		(3%)
Gross profit	$	182,607		$	175,371		4%
Gross margin		14.7	%		13.7	%	100 bps
Selling and administrative expenses	$	136,950		$	132,640		3%
Severance and restructuring expenses	$	331		$	443		(25%)
Earnings from operations	$	45,326		$	42,288		7%

Sales Mix							**
Hardware		60	%		68	%	(14%)
Software		26	%		21	%	23%
Services		14	%		11	%	19%
		100	%		100	%	(3%)

EMEA
Net sales:
Products	$	354,673		$	377,212		(6%)
Services	$	35,502		$	29,922		19%
Total net sales	$	390,175		$	407,134		(4%)
Gross profit	$	56,983		$	56,050		2%
Gross margin		14.6	%		13.8	%	80 bps
Selling and administrative expenses	$	47,145		$	48,283		(2%)
Severance and restructuring expenses	$	(85	)	$	1,074		> 100%
Earnings from operations	$	9,923		$	6,693		48%

Sales Mix							**
Hardware		44	%		46	%	(8%)
Software		47	%		47	%	(4%)
Services		9	%		7	%	19%
		100	%		100	%	(4%)

APAC
Net sales:
Products	$	41,583		$	46,179		(10%)
Services	$	11,267		$	10,801		4%
Total net sales	$	52,850		$	56,980		(7%)
Gross profit	$	8,882		$	8,842			—
Gross margin		16.8	%		15.5	%	130 bps
Selling and administrative expenses	$	6,968		$	7,257		(4%)
Severance and restructuring expenses	$	124		$	127		(2%)
Earnings from operations	$	1,790		$	1,458		23%

Sales Mix							**
Hardware		12	%		13	%	(9%)
Software		67	%		68	%	(10%)
Services		21	%		19	%	4%
		100	%		100	%	(7%)

**			Change in sales mix represents growth/decline in category net sales on a U.S. dollar basis and does not exclude the effects of fluctuating foreign currency exchange rates.

FORWARD-LOOKING INFORMATION

Certain statements in this release and the related conference call and
web cast are “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements, including the Company’s expected 2019 financial results,
sales growth and Adjusted diluted earnings per share for the full year
2019, and the assumptions relating thereto, as well as the Company’s
anticipated effective tax rate, capital expenditures and plans
concerning repurchases under the Company’s currently authorized share
repurchase program, and the Company’s expectations regarding cash flow,
are inherently subject to risks and uncertainties, some of which cannot
be predicted or quantified. Future events and actual results could
differ materially from those set forth in, contemplated by, or
underlying the forward-looking statements. There can be no assurances
that the results discussed by the forward-looking statements will be
achieved, and actual results may differ materially from those set forth
in the forward-looking statements. Some of the important factors that
could cause the Company’s actual results to differ materially from those
projected in any forward-looking statements, include, but are not
limited to, the following, which are discussed in “Risk Factors” in Part
I, Item 1A of the Company’s Annual Report on Form 10-K for the year
ended December 31, 2018 and in the Company’s subsequent filings with the
Securities and Exchange Commission:

actions of the Company’s competitors, including manufacturers and
publishers of products the Company sells;
the Company’s reliance on partners for product availability,
competitive products to sell and marketing funds and purchasing
incentives, which can change significantly in the amounts made
available and the requirements year over year;
changes in the information technology (“IT”) industry and/or rapid
changes in technology;
risks associated with the integration and operation of acquired
businesses;
possible significant fluctuations in the Company’s future operating
results;
the risks associated with the Company’s international operations;
general economic conditions;
increased debt and interest expense and decreased availability of
funds under the Company’s financing facilities;
the security of the Company’s electronic and other confidential
information;
disruptions in the Company’s IT systems and voice and data networks;
failure to comply with the terms and conditions of the Company’s
commercial and public sector contracts;
legal proceedings and the results of client and public sector audits
and failure to comply with laws and regulations;
accounts receivable risks, including increased credit loss experience
or extended payment terms with the Company’s clients;
the Company’s reliance on independent shipping companies;
the Company’s dependence on certain key personnel;
natural disasters or other adverse occurrences;
exposure to changes in, interpretations of, or enforcement trends
related to tax rules and regulations; and
intellectual property infringement claims and challenges to the
Company’s registered trademarks and trade names.

Additionally, there may be other risks that are otherwise described from
time to time in the reports that the Company files with the Securities
and Exchange Commission. Any forward-looking statements in this release
should be considered in light of various important factors, including
the risks and uncertainties listed above, as well as others. The Company
assumes no obligation to update, and, except as may be required by law,
does not intend to update, any forward-looking statements. The Company
does not endorse any projections regarding future performance that may
be made by third parties.


INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) Advertisement

	Three Months Ended March 31,
	2019			2018
Net sales:
Products	$	1,466,672		$	1,557,792
Services		218,794			184,702
Total net sales		1,685,466			1,742,494
Costs of goods sold:
Products		1,337,308			1,414,986
Services		99,686			87,245
Total costs of goods sold		1,436,994			1,502,231
Gross profit		248,472			240,263
Operating expenses:
Selling and administrative expenses		191,063			188,180
Severance and restructuring expenses		370			1,644
Earnings from operations		57,039			50,439
Non-operating (income) expense:
Interest income		(271	)		(153	)
Interest expense		4,823			6,015
Net foreign currency exchange loss (gain)		711			(245	)
Other expense, net		339			302
Earnings before income taxes		51,437			44,520
Income tax expense		12,110			11,517
Net earnings	$	39,327		$	33,003

Net earnings per share:
Basic	$	1.10		$	0.92
Diluted	$	1.09		$	0.91

Shares used in per share calculations:
Basic		35,609			35,913
Diluted		36,103			36,263


INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) Advertisement (UNAUDITED)

	March 31, 2019			December 31, 2018 Advertisement
ASSETS
Current assets:
Cash and cash equivalents	$	124,831		$	142,655
Accounts receivable, net		1,723,817			1,931,736
Inventories		187,146			148,503
Other current assets		117,199			115,683
Total current assets		2,152,993			2,338,577

Property and equipment, net		74,038			72,954
Goodwill		166,073			166,841
Intangible assets, net		108,856			112,179
Deferred income taxes		7,345			7,967
Other assets		247,162			77,429
	$	2,756,467		$	2,775,947

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable – trade	$	897,609		$	978,104
Accounts payable – inventory financing facility		260,160			304,130
Accrued expenses and other current liabilities		183,678			190,733
Current portion of long-term debt		1,161			1,395
Deferred revenue		66,646			62,300
Total current liabilities		1,409,254			1,536,662

Long-term debt		113,227			195,525
Deferred income taxes		604			683
Other liabilities		207,164			56,088
		1,730,249			1,788,958
Stockholders’ equity:
Preferred stock		—			—
Common stock		358			355
Additional paid-in capital		321,606			323,622
Retained earnings		743,992			704,665
Accumulated other comprehensive loss – foreign currency translation adjustments		(39,738	)		(41,653	)
Total stockholders’ equity		1,026,218			986,989
	$	2,756,467		$	2,775,947


INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) (UNAUDITED) Advertisement

	Three Months Ended March 31,
	2019			2018
Cash flows from operating activities:
Net earnings	$	39,327		$	33,003
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization of property and equipment		5,044			5,433
Amortization of intangible assets		3,823			3,611
Provision for losses on accounts receivable		1,413			346
Write-downs of inventories		1,408			629
Write-off of property and equipment		—			303
Non-cash stock-based compensation		4,115			3,184
Deferred income taxes		547			979
Changes in assets and liabilities:
Decrease in accounts receivable		210,691			184,877
(Increase) decrease in inventories		(39,658	)		4,444
Increase in other assets		(107,314	)		(25,514	)
Decrease in accounts payable		(82,246	)		(97,104	)
Increase in deferred revenue		7,117			16,177
Increase in accrued expenses and other liabilities		77,646			20,377
Net cash provided by operating activities		121,913			150,745
Cash flows from investing activities:
Purchases of property and equipment		(5,352	)		(5,044	)
Acquisitions, net of cash and cash equivalents acquired		(762	)		—
Net cash used in investing activities		(6,114	)		(5,044	)
Cash flows from financing activities:
Borrowings on senior revolving credit facility		49,936			276,684
Repayments on senior revolving credit facility		(49,936	)		(392,184	)
Borrowings on accounts receivable securitization financing facility		1,010,500			1,024,000
Repayments on accounts receivable securitization financing facility		(1,092,500	)		(955,000	)
Repayments under Term Loan A		—			(3,281	)
Repayments under other financing agreements		—			(1,234	)
Payments on finance lease obligations		(542	)		(288	)
Net repayments under inventory financing facility		(43,970	)		(91,366	)
Payment of payroll taxes on stock-based compensation through shares withheld		(6,128	)		(2,884	)
Repurchases of common stock		—			(7,679	)
Net cash used in financing activities		(132,640	)		(153,232	)
Foreign currency exchange effect on cash, cash equivalents and restricted cash balances Advertisement		(986	)		1,937
Decrease in cash, cash equivalents and restricted cash		(17,827	)		(5,594	)
Cash, cash equivalents and restricted cash at beginning of period		144,293			107,445
Cash, cash equivalents and restricted cash at end of period	$	126,466		$	101,851


INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)

	Three Months Ended Advertisement March 31,
	2019				2018
Adjusted Consolidated Earnings from Operations:
GAAP consolidated EFO	$		57,039		$	50,439
Severance and restructuring expenses			370			1,644
Adjusted non-GAAP consolidated EFO	$		57,409		$	52,083

Adjusted Consolidated Net Earnings:
GAAP consolidated net earnings	$		39,327		$	33,003
Severance and restructuring expenses			370			1,644
Income taxes on non-GAAP adjustments			(100	)		(291	)
Adjusted non-GAAP consolidated net earnings	$		39,597		$	34,356

Adjusted Diluted Earnings Per Share:
GAAP diluted EPS	$		1.09		$	0.91
Severance and restructuring expenses			0.01			0.05
Income taxes on non-GAAP adjustments			—			(0.01	)
Adjusted non-GAAP diluted EPS	$		1.10		$	0.95

Adjusted North America Earnings from Operations:
GAAP EFO from North America segment	$		45,326		$	42,288
Severance and restructuring expenses			331			443
Adjusted non-GAAP EFO from North America segment	$		45,657		$	42,731

Adjusted EMEA Earnings from Operations:
GAAP EFO from EMEA segment	$		9,923		$	6,693
Severance and restructuring expenses			(85	)		1,074
Adjusted non-GAAP EFO from EMEA segment	$		9,838		$	7,767

Adjusted APAC Earnings from Operations:
GAAP EFO from APAC segment	$		1,790		$	1,458
Severance and restructuring expenses			124			127
Adjusted non-GAAP EFO from APAC segment	$		1,914		$	1,585


	Three Months Ended Advertisement March 31,
	2019				2018
Adjusted free cash flow:
Net cash provided by operating activities	$	121,913			$	150,745
Purchases of property and equipment		(5,352		)		(5,044	)
Net repayments under inventory financing facility		(43,970		)		(91,366	)
Adjusted non-GAAP free cash flow	$	72,591			$	54,335


	Twelve Months Ended March 31,
	2019				2018
Adjusted return on invested capital:
GAAP consolidated EFO	$	240,082			$	206,751 Advertisement
Severance and restructuring expenses		2,151				5,951
Loss on sale of foreign entity		—				3,646
Acquisition-related expenses		282			Advertisement	382
Adjusted non-GAAP consolidated EFO		242,515				216,730
Income tax expense*		66,692				59,601 Advertisement
Adjusted non-GAAP consolidated EFO, net of tax	$	175,823			$	157,129
Average stockholders’ equity**	$	948,764			$	814,107
Average debt**		200,748			Advertisement	360,289
Average cash**		(145,380		)		(164,194	)
Invested Capital	$	1,004,132			$	1,010,202 Advertisement

Adjusted non-GAAP ROIC (from GAAP consolidated EFO) ***		17.33		%		14.84	%
Adjusted non-GAAP ROIC (from non-GAAP consolidated EFO) ****		17.51		%		15.55	%

*			Assumed tax rate of 27.5% for 2019 and 2018.
**			Average of previous five quarters.
***			Computed as GAAP consolidated EFO, net of tax of $66,023 and $56,857 for the twelve months ended March 31, 2019 and 2018, respectively, divided by invested capital.
****			Computed as Adjusted non-GAAP consolidated EFO, net of tax, divided by invested capital.

Contacts

Glynis Bryan
Chief Financial Officer
480-333-3390
[email protected]

Helen Johnson
Senior VP, Finance
480-333-3234
[email protected]

Germany

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

Published

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

View original content:https://www.prnewswire.co.uk/news-releases/gedeon-richter-presents-analysis-on-cannabis-usage-among-patients-with-schizophrenia-a-new-medical-solution-to-a-severe-issue-might-be-available-302258335.html

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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About Us

Towards Packaging is a leading global consulting firm specializing in providing comprehensive and strategic research solutions. With a highly skilled and experienced consultant team, we offer a wide range of services designed to empower businesses with valuable insights and actionable recommendations. We stay abreast of the latest industry trends and emerging markets to provide our clients with an unrivalled understanding of their respective sectors. We adhere to rigorous research methodologies, combining primary and secondary research to ensure accuracy and reliability. Our data-driven approach and advanced analytics enable us to unearth actionable insights and make informed recommendations. We are committed to delivering excellence in all our endeavours. Our dedication to quality and continuous improvement has earned us the trust and loyalty of clients worldwide.

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