Brighthouse Financial Announces First Quarter 2019 Results
-
First quarter 2019 net loss available to shareholders of $737
million, or $6.31 on a per diluted share basis, driven primarily by
net derivative mark-to-market losses -
Adjusted earnings, less notable items*, of $259 million, or $2.21
on a per diluted share basis - Annuity sales grew 36 percent over the first quarter of 2018
-
Variable annuity assets approximately $1.1 billion in excess of
CTE98* -
Company repurchased $52 million of its common stock during the
quarter; announced the repurchase of up to an additional $400 million
shares of common stock
CHARLOTTE, N.C.–(BUSINESS WIRE)–Brighthouse Financial, Inc. (“Brighthouse Financial” or the “company”)
(Nasdaq: BHF) announced today its financial results for the first
quarter ended March 31, 2019.
First Quarter 2019 Results
The company reported a net loss available to shareholders of $737
million in the first quarter of 2019, or $6.31 on a per diluted share
basis, compared to a net loss available to shareholders of $67 million
in the first quarter of 2018. The company ended the first quarter of
2019 with stockholders’ equity (“book value”) of $15.0 billion, or
$129.10 on a per share basis, and book value, excluding preferred stock
and accumulated other comprehensive income (“AOCI”) of $12.9 billion, or
$111.18 on a per share basis.
For the first quarter of 2019, the company reported adjusted earnings*
of $232 million, or $1.98 on a per diluted share basis.
The adjusted earnings for the quarter reflected a $27 million
unfavorable notable item, or $0.23 on a per diluted share basis, for
establishment costs related to planned technology and branding expenses
associated with the company’s separation from its former parent company.
Corporate expenses in the first quarter of 2019 were $225 million
pre-tax, down from $233 million pre-tax in the fourth quarter of 2018.
| _______________________ | |
|
* |
Information regarding the non-GAAP and other financial measures |
Annuity sales increased 36 percent quarter-over-quarter and 1 percent
sequentially. The company’s first quarter 2019 sales results were its
highest since becoming an independent public company.
The company also announced today that it has authorized the repurchase
of up to $400 million of Brighthouse Financial common stock. This stock
repurchase authorization is in addition to the $200 million stock
repurchase authorization announced in August 2018. During the first
quarter of 2019, the company repurchased $52 million of its common
stock, with an additional $14 million of its common stock repurchased in
April 2019, bringing total repurchases pursuant to the August 2018
authorization to $171 million through April 30, 2019.
“Brighthouse delivered solid results during the first quarter of 2019,
driven by robust annuity sales, favorable market conditions, and prudent
capital and expense management,” said Eric Steigerwalt, president and
chief executive officer, Brighthouse Financial. “We remain focused on
executing our strategy, which we continue to believe will generate
long-term value for our customers, partners and shareholders.”
Key Metrics (Unaudited, dollars in millions except share and per
share amounts)
| As of or For the Three Months Ended | ||||||||
| March 31, 2019 | March 31, 2018 | |||||||
| Total | Per share | Total | Per share | |||||
| Net income (loss) available to shareholders (1) | $(737) | $(6.31) | $(67) | $(0.56) | ||||
| Adjusted earnings (1) | $232 | $1.98 | $283 | $2.36 | ||||
| Weighted average common shares outstanding – diluted | 117,229,854 | N/A | 119,773,106 | N/A | ||||
| Book value | $14,999 | $129.10 | $13,584 | $113.41 | ||||
| Book value, excluding preferred stock and AOCI | $12,917 | $111.18 | $12,847 | $107.26 | ||||
| Ending common shares outstanding | 116,182,687 | N/A | 119,773,106 | N/A | ||||
|
(1) Per share amounts are on a diluted basis and may not recalculate due to rounding. For loss periods, dilutive shares were not included in the calculation as inclusion of such shares would have an anti-dilutive effect. |
||||||||
Results by Business Segment and Corporate & Other (Unaudited, in
millions)
| For the Three Months Ended | ||||||
| Adjusted earnings |
March 31, 2019 |
December 31, 2018 |
March 31, 2018 |
|||
| Annuities | $295 | $175 | $226 | |||
| Life | $25 | $64 | $66 | |||
| Run-off (1) | $(36) | $18 | $50 | |||
| Corporate & Other (1) | $(52) | $(71) | $(59) | |||
|
(1) The company uses the term “adjusted loss” throughout this news release to refer to negative adjusted earnings values. |
||||||
Sales (Unaudited, in millions)
| For the Three Months Ended | ||||||
|
March 31, 2019 |
December 31, 2018 |
March 31, 2018 |
||||
| Annuities (1) | $1,707 | $1,698 | $1,256 | |||
| Life | $1 | $1 | $2 | |||
|
(1) Annuities sales include sales of a fixed indexed annuity product sold by Massachusetts Mutual Life Insurance Company, representing 90% of gross sales of that product. Sales of this product were $281 million for the first quarter of 2019, $368 million for the fourth quarter of 2018, and $173 million for the first quarter of 2018. |
||||||
Annuities
Adjusted earnings in the Annuities segment were $295 million in the
current quarter, compared to adjusted earnings of $226 million in the
first quarter of 2018 and adjusted earnings of $175 million in the
fourth quarter of 2018.
There were no notable items in the current quarter or in the first
quarter of 2018. The fourth quarter of 2018 included a $12 million
favorable notable item.
On a quarter-over-quarter and sequential basis, adjusted earnings, less
notable items, reflect lower amortization of deferred acquisition costs
(“DAC”), lower reserves, and higher net investment income, driven
primarily by positive market performance in the quarter, partially
offset by lower fees.
As mentioned above, annuity sales increased 36 percent
quarter-over-quarter and 1 percent sequentially.
Life
Adjusted earnings in the Life segment were $25 million in the current
quarter, compared to adjusted earnings of $66 million in the first
quarter of 2018 and adjusted earnings of $64 million in the fourth
quarter of 2018.
There were no notable items in the current quarter. The first quarter of
2018 included $16 million of favorable notable items, while the fourth
quarter of 2018 did not include any notable items.
On a quarter-over-quarter basis, adjusted earnings, less notable items,
reflect higher claims and lower net investment income, partially offset
by lower expenses. On a sequential basis, adjusted earnings, less
notable items, reflect higher claims related to lower reinsurance
recoveries, and lower net investment income, partially offset by lower
DAC amortization.
Run-off
The Run-off segment had an adjusted loss of $36 million in the current
quarter, compared to adjusted earnings of $50 million in the first
quarter of 2018 and adjusted earnings of $18 million in the fourth
quarter of 2018.
There were no notable items in the current quarter while the first
quarter of 2018 included $16 million of favorable notable items. The
fourth quarter of 2018 included $14 million of favorable notable items.
On a quarter-over-quarter basis, the adjusted loss, less notable items,
reflects lower net investment income and higher claims related to lower
reinsurance recoveries. On a sequential basis, the adjusted loss, less
notable items, reflects lower net investment income.
Corporate & Other
Corporate & Other had an adjusted loss of $52 million in the current
quarter, compared to an adjusted loss of $59 million in the first
quarter of 2018 and an adjusted loss of $71 million in the fourth
quarter of 2018.
The current quarter includes a $27 million unfavorable notable item
related to establishment costs, as described above. The first quarter of
2018 included a $37 million unfavorable notable item and the fourth
quarter of 2018 included a $39 million unfavorable notable item.
On a quarter-over-quarter basis, the adjusted loss, less notable items,
reflects higher interest expense, partially offset by higher net
investment income. On a sequential basis, the adjusted loss, less
notable items, reflects lower expenses, partially offset by a
non-recurring tax benefit in the fourth quarter of 2018.
Net Investment Income and Adjusted Net Investment Income (Unaudited,
in millions)
| For the Three Months Ended | ||||||
|
March 31, 2019 |
December 31, 2018 |
March 31, 2018 |
||||
| Net investment income | $811 | $862 | $817 | |||
| Adjusted net investment income* | $811 | $863 | $825 | |||
Net Investment Income
Net investment income and adjusted net investment income for the first
quarter of 2019 were each $811 million. On a quarter-over-quarter and
sequential basis, adjusted net investment income decreased $14 million
and $52 million, respectively. These results were primarily driven by
lower alternative investment income, partially offset by growth in
average invested assets and the ongoing repositioning of the investment
portfolio.
The net investment income yield was 4.10 percent during the quarter.
Statutory Capital and Liquidity (Unaudited, in billions)
| As of | ||||||
|
March 31, 2019 (1) |
December 31, 2018 |
March 31, 2018 |
||||
| Statutory combined total adjusted capital | $6.3 | $7.4 | $6.5 | |||
| (1) Reflects preliminary statutory results as of March 31, 2019. | ||||||
Capitalization
Holding company liquid assets were approximately $1.1 billion at
March 31, 2019.
Statutory combined total adjusted capital on a preliminary basis
decreased to approximately $6.3 billion at March 31, 2019, driven
primarily by net derivative mark-to-market losses.
Variable annuity assets were approximately $1.1 billion above the CTE98
level at March 31, 2019.
As previously announced, on March 25, 2019, the company issued
depositary shares each representing a 1/1,000th interest in a share of
its 6.600% Non-Cumulative Preferred Stock, Series A. The net proceeds of
$412 million were contributed to Brighthouse Life Insurance Company.
Earnings Conference Call
Brighthouse Financial will hold a conference call and audio webcast to
discuss its financial results for the first quarter of 2019 at 8:00 a.m.
Eastern Time on Tuesday, May 7, 2019.
To listen to the audio webcast via the internet and to access the
related presentation, please visit the Brighthouse Financial Investor
Relations web page at http://investor.brighthousefinancial.com.
To join the conference call via telephone please dial (844) 358-9117 (+1
(209) 905-5952 from outside the U.S.) and use conference ID 3895856.
A replay of the conference call will be made available until Friday, May
24, 2019 on the Brighthouse Financial Investor Relations web page at http://investor.brighthousefinancial.com.
Note Regarding Forward-Looking Statements
This news release and other oral or written statements that we make from
time to time may contain information that includes or is based upon
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements involve
substantial risks and uncertainties. We have tried, wherever possible,
to identify such statements using words such as “anticipate,”
“estimate,” “expect,” “project,” “may,” “will,” “could,” “intend,”
“goal,” “target,” “guidance,” “forecast,” “preliminary,” “objective,”
“continue,” “aim,” “plan,” “believe” and other words and terms of
similar meaning, or that are tied to future periods, in connection with
a discussion of future operating or financial performance. In
particular, these include, without limitation, statements relating to
future actions, prospective services or products, future performance or
results of current and anticipated services or products, sales efforts,
expenses, the outcome of contingencies such as legal proceedings, trends
in operating and financial results, as well as statements regarding the
expected benefits of the separation (the “Separation”) from MetLife,
Inc. (“MetLife”).
Any or all forward-looking statements may turn out to be wrong. They can
be affected by inaccurate assumptions or by known or unknown risks and
uncertainties. Many such factors will be important in determining the
actual future results of Brighthouse Financial. These statements are
based on current expectations and the current economic environment and
involve a number of risks and uncertainties that are difficult to
predict. These statements are not guarantees of future performance.
Actual results could differ materially from those expressed or implied
in the forward-looking statements due to a variety of known and unknown
risks, uncertainties and other factors. Although it is not possible to
identify all of these risks and factors, they include, among others:
differences between actual experience and actuarial assumptions and the
effectiveness of our actuarial models; higher risk management costs and
exposure to increased market and counterparty risk due to guarantees
within certain of our products; the effectiveness of our variable
annuity exposure management strategy and the impact of such strategy on
net income volatility and negative effects on our statutory capital; the
reserves we are required to hold against our variable annuities as a
result of actuarial guidelines; a sustained period of low equity market
prices and interest rates that are lower than those we assumed when we
issued our variable annuity products; the potential material adverse
effect of changes in accounting standards, practices and/or policies
applicable to us, including changes in the accounting for long-duration
contracts; our degree of leverage due to indebtedness; the effect
adverse capital and credit market conditions may have on our ability to
meet liquidity needs and our access to capital; the impact of changes in
regulation and in supervisory and enforcement policies on our insurance
business or other operations; the effectiveness of our risk management
policies and procedures; the availability of reinsurance and the ability
of our counterparties to our reinsurance or indemnification arrangements
to perform their obligations thereunder; heightened competition,
including with respect to service, product features, scale, price,
actual or perceived financial strength, claims-paying ratings, credit
ratings, e-business capabilities and name recognition; the ability of
our insurance subsidiaries to pay dividends to us, and our ability to
pay dividends to our shareholders; our ability to market and distribute
our products through distribution channels; any failure of third parties
to provide services we need, any failure of the practices and procedures
of these third parties and any inability to obtain information or
assistance we need from third parties, including MetLife; whether all or
any portion of the tax consequences of the Separation are not as
expected, leading to material additional taxes or material adverse
consequences to tax attributes that impact us; the uncertainty of the
outcome of any disputes with MetLife over tax-related or other matters
and agreements including the potential of outcomes adverse to us that
could cause us to owe MetLife material tax reimbursements or payments or
disagreements regarding MetLife’s or our obligations under our other
agreements; the impact on our business structure, profitability, cost of
capital and flexibility due to restrictions we have agreed to that
preserve the tax-free treatment of certain parts of the Separation; the
potential material negative tax impact of potential future tax
legislation that could decrease the value of our tax attributes and
cause other cash expenses, such as reserves, to increase materially and
make some of our products less attractive to consumers; whether the
Separation will qualify for non-recognition treatment for federal income
tax purposes and potential indemnification to MetLife if the Separation
does not so qualify; the impact of the Separation on our business and
profitability due to MetLife’s strong brand and reputation, the
increased costs related to replacing arrangements with MetLife with
those of third parties and incremental costs as a public company;
whether the operational, strategic and other benefits of the Separation
can be achieved, and our ability to implement our business strategy; our
ability to attract and retain key personnel; and other factors described
from time to time in documents that we file with the U.S. Securities and
Exchange Commission (the “SEC”).
For the reasons described above, we caution you against relying on any
forward-looking statements, which should also be read in conjunction
with the other cautionary statements included and the risks,
uncertainties and other factors identified in our Annual Report on Form
10-K for the year ended December 31, 2018, particularly in the sections
entitled “Risk Factors” and “Quantitative and Qualitative Disclosures
About Market Risk,” as well as in our subsequent filings with the SEC.
Further, any forward-looking statement speaks only as of the date on
which it is made, and we undertake no obligation to update or revise any
forward-looking statement to reflect events or circumstances after the
date on which the statement is made or to reflect the occurrence of
unanticipated events, except as otherwise may be required by law.
Non-GAAP and Other Financial Disclosures
Our definitions of the non-GAAP and other financial measures may differ
from those used by other companies.
Non-GAAP Financial Disclosures
We present certain measures of our performance that are not calculated
in accordance with accounting principles generally accepted in the
United States of America, also known as “GAAP.” We believe that these
non-GAAP financial measures highlight our results of operations and the
underlying profitability drivers of our business, as well as enhance the
understanding of our performance by the investor community.
The following non-GAAP financial measures, previously referred to as
operating measures, should not be viewed as substitutes for the most
directly comparable financial measures calculated in accordance with
GAAP:
|
Non-GAAP financial measures: |
Most directly comparable GAAP financial |
||
| adjusted earnings | net income (loss) available to shareholders (1) | ||
| adjusted earnings, less notable items | net income (loss) available to shareholders (1) | ||
| adjusted revenues | revenues | ||
| adjusted expenses | expenses | ||
| adjusted earnings per common share | earnings per common share, diluted (1) | ||
| adjusted earnings per common share, less notable items | earnings per common share, diluted (1) | ||
| adjusted return on equity | return on equity | ||
| adjusted return on equity, less notable items | return on equity | ||
| adjusted net investment income | net investment income | ||
| __________________ | |||
|
(1) Brighthouse uses net income (loss) available to shareholders to refer to net income (loss) available to Brighthouse Financial, Inc.’s common shareholders, and earnings per common share, diluted to refer to net income (loss) available to shareholders per common share. |
|||
Reconciliations to the most directly comparable historical GAAP measures
are included for those measures which are presented herein.
Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP financial measures are not accessible on a
forward-looking basis because we believe it is not possible without
unreasonable efforts to provide other than a range of net investment
gains and losses and net derivative gains and losses, which can
fluctuate significantly within or outside the range and from period to
period and may have a material impact on net income (loss) available to
shareholders.
Adjusted Earnings, Adjusted Revenues and Adjusted Expenses
Adjusted earnings, which may be positive or negative, is used by
management to evaluate performance, allocate resources and facilitate
comparisons to industry results. This financial measure focuses on our
primary businesses principally by excluding the impact of market
volatility, which could distort trends.
Adjusted earnings reflects adjusted revenues less adjusted expenses,
both net of income tax, and excludes net income (loss) attributable to
noncontrolling interests. Provided below are the adjustments to GAAP
revenues and GAAP expenses used to calculate adjusted revenues and
adjusted expenses, respectively.
The following are significant items excluded from total revenues, net of
income tax, in calculating the adjusted revenues component of adjusted
earnings:
- Net investment gains (losses);
-
Net derivative gains (losses) (“NDGL”), except earned income on
derivatives that are hedges of investments or that are used to
replicate certain investments, but do not qualify for hedge accounting
treatment (“Investment Hedge Adjustments”); and -
Certain variable annuity GMIB fees (“GMIB Fees”) and amortization of
unearned revenue related to net investment gains (losses) and net
derivative gains (losses).
The following are significant items excluded from total expenses, net of
income tax, in calculating the adjusted expenses component of adjusted
earnings:
-
Amounts associated with benefits and hedging costs related to GMIBs
(“GMIB Costs”); -
Amounts associated with periodic crediting rate adjustments based on
the total return of a contractually referenced pool of assets and
market value adjustments associated with surrenders or terminations of
contracts (“Market Value Adjustments”); and -
Amortization of DAC and value of business acquired (“VOBA”) related to
(i) net investment gains (losses), (ii) net derivative gains (losses),
(iii) GMIB Fees and GMIB Costs and (iv) Market Value Adjustments.
The tax impact of the adjustments mentioned is calculated net of the
statutory tax rate, which could differ from our effective tax rate.
Consistent with GAAP guidance for segment reporting, adjusted earnings
is also our GAAP measure of segment performance.
Adjusted Earnings per Common Share and Adjusted Return on Equity
Adjusted earnings per common share and adjusted return on equity are
measures used by management to evaluate the execution of our business
strategy and align such strategy with our shareholders’ interests.
Adjusted earnings per common share is defined as adjusted earnings for
the period divided by the weighted average number of fully diluted
shares of common stock outstanding for the period.
Adjusted return on equity is defined as total annual adjusted earnings
on a four quarter trailing basis, divided by the simple average of the
most recent five quarters of total Brighthouse Financial, Inc.’s
stockholders’ equity, excluding preferred stock and AOCI.
Adjusted Net Investment Income
We present adjusted net investment income to measure our performance for
management purposes, and we believe it enhances the understanding of our
investment portfolio results. Adjusted net investment income represents
net investment income including investment hedge adjustments.
Other Financial Disclosures
Corporate Expenses
Corporate expenses includes functional department expenses, public
company expenses, certain investment expenses, retirement funding and
incentive compensation; and excludes establishment costs.
Notable items
Certain of the non-GAAP measures described above may be presented
further adjusted to exclude notable items.
Contacts
FOR INVESTORS
David Rosenbaum
(980) 949-3326
[email protected]
FOR MEDIA
Meghan Lantier
(980) 949-4142
[email protected]
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 1st, 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 BLKMKTTM 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]
Logo – https://mma.prnewswire.com/media/1742228/IM_Cannabis_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/imc-germany-announces-outstanding-preliminary-q3-2024-performance-with-50-growth-over-q2-302265523.html
Gedeon
Gedeon Richter presents analysis on cannabis usage among patients with schizophrenia: a new medical solution to a severe issue might be available
A novel psychiatric scale developed by colleagues of Gedeon Richter Plc. in collaboration with academia was also presented at the 37th ECNP conference
BUDAPEST, Hungary, Sept. 25, 2024 /PRNewswire/ — During the 37th 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 3rd 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
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.
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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
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