Althea has reported a 78% rise in revenue and a narrowing of losses in a year-end result chief executive Josh Fegan described as “very pleasing”.

The company generated A$20.5m in revenue with an after tax deficit of $12m, down 24% on the $15m loss in 2021. Shares saw an immediate bounce, rising 2% in early morning trading.

Fegan said the success was underpinned by both Althea and subsidiary Peak Processing Solutions “executing their respective growth plans”.

josh fegan
Althea chief executive Josh Fegan

The result was achieved with only a “conservative” increase in operating costs, he said, which climbed by $1m to $20.8m.

In Australia, revenue climbed 36% to $12m, with UK sales up 8% to $2m.

Elsewhere in Europe, Fegan said Germany “continues to be an attractive market with great opportunities”.

“It is a significant part of our strategic expansion plans into the accelerating European market,” he said in the company’s annual report.

Althea is also preparing to enter the Irish market following approval of its CBD12:THC10 product.

Meanwhile, Canadian recreational operation Peak generated revenue of close to $9m, up 454% on the previous year.

The growth was driven by new manufacturing contracts, Fegan said, including a US$3.4m deal with Boston Beer Company.

Althea has $6.2m of available cash, in line with its FY21 cash position.

Steve has reported for a number of consumer and B2B titles over a journalism career spanning more than three decades. He is a regulator contributor to health journal, The Medical Republic, writing on...

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