Althea Group Holdings (AGH) has reported revenue of A$25.09 million in FY23, up 22% on FY22, with its local arm delivering record sales.
Revenue from Australian customers totalled $12.18m for the financial year, up nearly 17% on the previous corresponding period.
AGH said the majority of sales were in the cannabis extracts category, where it claimed to have “the dominant market share in Australia”.
Group losses increased to $13.73m, up 13% on the previous corresponding period. AGH ended the year with cash and cash equivalents of $3.88m, down from $6.21m at the end of FY22.
Net cash used in operating activities totalled $6.29 million, down 31% on the previous year, which AGH attributed to cost cuts implemented in FY23 which it expects to “flow through to statutory financial reporting in the first half of FY24”.
During the year, the group raised $2.2m in capital and secured a further $4.32 million in funding to support growth.
CEO Josh Fegan told shareholders the firm’s high-THC flower product, launched in Australia in Q2 FY23, had achieved “rapid sales growth”, becoming its strongest selling product by the end of the financial year.
He added: “The company expects sales to continue to grow strongly in FY24, as existing cannabis dried flower prescribers migrate customers to Althea, given our outstanding reputation in the medical community along with our ethical approach to the sale and distribution of cannabis-based medicines.”
The company also launched its first 25mg CBD soft-gel capsule in September 2022, in partnership with FoliuMed, with Fegan predicting sales of the delivery format will overtake oils (tinctures) in the long term “given its familiarity and ease of use”.
Althea is also developing a widened range of dried flower products expected to launch in the first half of FY24.
“New product development remains critical to sustaining market leadership in a competitive and dynamic industry,” Fegan said.
In the firm’s annual financial report, Fegan repeated claims first made in July that it lost $3.2m in sales due to supply chain disruptions caused by TGO93 reforms which came into force that month.
He wrote: “Announced by the TGA in 2022 and providing less than 15 months lead time, the new regulations relating to product conformity resulted in the company having to review and pivot many aspects of its supply chain, including but not limited to product specifications, packaging and labelling.
“As part of the supply chain transition, the company experienced multiple delays which resulted in several high-selling products being temporarily out of stock during the reporting period.
“It is estimated that the stock outages resulted in a loss of sales of approximately $3.2m. The Australian sales team have a solid strategy in place to regain lost sales in the first half of FY24. Product supply to the Australian market, along with all international markets, has returned to normal and no further disruptions are anticipated.”