Elixinol Wellness has told the ASX it is considering “all options”, including a sale or merger, as part of an ongoing strategic review.
Despite revenue falling 38% from A$15m to $9.3m in FY21, cost reductions meant the firm halved losses from A$23.2m in FY20 to $11.5m in FY21.
Hemp Foods Australia (HFA) contributed A$4.1m in revenue (down 100k on FY20) while reducing losses by 33% to A$200k.
The company said its focus on branded products and e-commerce channels drove significant improvement in margins, which finished the period at 52%, up from 45% the previous year.
Global CEO Oliver Horn said: “Overall, we are pleased with the progress made on our transformation through FY21. We have created a leaner consumer products wellness company with leading brands that are strongly positioned [for] long-term growth.
“Our FY22 priorities reflect our focus on delivering value to shareholders. Through our previously announced strategic review, we are taking the natural next step toward improving shareholder returns.
“We are considering all options, including merger, sale or other options for the company as a whole or as business units.”
Elixinol said it has invested heavily in FY21 to create a global R&D and innovation team focused on developing “next generation nutraceuticals and health food products, with rapid progress made to date”.
New products launched include an Elixinol CBD pet range and HFA’s hemp paste.