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Welcome to Business of Cannabis’ new weekly strategic digest tracking the financial health, market moves, and corporate developments shaping the European cannabis sector.
Earnings season is in full swing across the business world, and the cannabis sector is no exception. We’ll be tracking the performance of Europe’s most significant cannabis players over the next few weeks to provide an overview of how 2025 is shaping up in the sector.
For further real-time updates on market dynamics, market sizing and evolving regulations, pre-orders for the soon-to-be-launched digital report from Prohibition Partners are now available here.
Jazz Pharmaceuticals
On May 06, pharmaceutical behemoth Jazz published its earnings for Q1 2025, missing analyst estimates on multiple performance indicators, including sales of Epidyolex, though revenue still grew by double digits.
In the three months to March 31, 2025, Jazz reported total revenues of $897.8m, slightly down from the $902m in the same period a year earlier, missing consensus estimates by around 8.5%.
Furthermore, its GAAP net loss of $92.5m was significantly higher than the $14.6m loss reported in Q1 2024, while earnings per share (EPS) came in at $1.68, well below estimates of $4.51.
According to the company, its earnings were impacted by $172m in expenses related to Xyrem antitrust litigation settlements.
As for its cannabinoid products, its flagship drug Epidyolex saw sales increase by 10% year-on-year to $217.7m, though this fell short of consensus estimates by around 6.5%.
However, a separate analysis from Delveinsight suggests that while Epidyolex is set to continue dominating the industry and being a key earner for Jazz in the near future, a growing number of viable alternative treatments in the rare epilepsies, particularly from bexicaserin and zorevunersen, which are now advancing through late-stage development, could pose a credible threat in the future.
Meanwhile, Jazz’s other leading cannabis-based Sativex was one of its major growth generators in the period, seeing sales nearly double (up 98%) to $5.4m.
Cantourage
Meanwhile, the booming German market has seen one of its leading operators, Cantourage, continue its run of record-breaking results.
Today, it reported that April 2025 was once again the most lucrative month in its history, the second consecutive record-beating month in a row, achieving revenues of €11.1m.
This came off the back of €10.7m revenues in March, marking the first double-digit monthly sales for Cantourage, alongside its best quarter to date throughout the first three months of 2025.
In Q1, the Berlin-based distributor reported sales of €25.6m, nearly half of its total 2024 sales (€51.4m), which itself represented a 118% increase from 2023.
The company said in its latest update that demand for its cannabis flowers continues to grow significantly, ‘both in Germany and in dynamically growing international markets such as the United Kingdom and Poland’.
Analysis from NuWay’s AG’s Christian Sandherr suggests that its quarterly figures comfortably exceeded its expectations of €22m.
Sandherr continued that this outsized growth was the results of de-bottlenecking efforts during the past few months, as Cantourage’s work to raise its processing capacities at its German site bore fruit.
“Securing sufficient supply (incl. processing capacities) could allow Cantourage to reach the €100m sales level already this year,” he added.
As for the companies profitability, which wasn’t reported, Sandherr said he expects further improvement to margins as scale begins to kick in, projecting an EBITDA of around 10% for Q1 (implying an EV/EBITDA multiple of 5.2x) ‘despite ongoing investments in growth’.
Looking ahead, the analyst believes that thanks to the ‘better than expected start to the year’ alongside ‘unbroken demand’, its sales forecast for the full year has increased from 67% to 81%, implying sales of €93m.
InterCure
Meanwhile, Israel’s largest operator reported a return to growth in the first quarter of the year, following severe disruption to its operations in 2024 amid the Israeli-Gaza war.
In its latest set of results, which included both the FY 2024 and Q1 2025 figures, Intercure reported revenues of NIS 239m in 2024 and an adjusted EBITDA of NIS 24m, 10% of annual revenue.
This marked a 33% decline in revenues compared to 2023 (NIS 356m), while EBITDA dropped by 60% year-on-year, attributed to a halt in production and distribution following damage to its infrastructure.
As part of a government compensation scheme, InterCure received NIS 82m, with further recovery payments expected that could top NIS 100m.
In Q1, revenues are expected to exceed NIS 70m, marking 25% growth on the previous period, and a return to positive EBITDA.
Looking ahead, InterCure has reiterated plans for international expansion via its strategic partnership with US giant Cookies, with product launches anticipated in the UK and Germany.
The company reportedly plans to open ‘Cookies Corners’ inside licensed pharmacies and launch new branded digital retail platforms across Europe.
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