Shares in Althea jumped 20% this week off the back of a strong final quarter and a full year performance which saw the company edge towards an earnings-positive position.
Revenue for the April to June quarter climbed 130% on the previous corresponding period to A$6.5m, taking its 12-month total to $22m, up 113%.
The result saw Althea’s share price leap by a fifth earlier this week before falling back to $0.92c. The company has gained 31% over the past month giving it a market capitalisation of $29.55m.
The year-end figures emerged as Althea revealed it will launch a “range of innovative new product” over the next three months with “plans to reach more doctors and patients than ever before with these new preparations”.
No further details were disclosed.
The strong financial performance was driven by encouraging results from both its medicinal cannabis operation and Canada-based recreational business, Peak Processing.
Its pharmaceutical division generated $11.2m of revenue, up from $8.7m in FY21 – with Australia accounting for $9.2m – while Peak pulled in $10.8m, an increase of $9.4m.
Operating expenditure in the final quarter hit an “all-time low” of $1.1m, the firm said, down from $2.2m as it grew sales and took a tighter control of costs.
Althea said the pharmaceutical results were achieved despite “serious macro headwinds throughout the year” including Covid-related issues, and flooding.
It predicted sales in FY23 would rise “significantly”.
In the UK, Althea generated revenue of $1.9m, an increase of 216%, adding that it expects further regulatory reform in Britain during the current financial year.
But the year was not without its challenges, Althea admitted, with Peak experiencing supply chain issues which delayed the roll out of new products and dented sales.
The products, which include its first cannabis beverage for Boston Beer Company, will now be released this quarter.
“The issues impacted sales and cash receipts for the quarter, however, it is expected that this will be reconciled in future quarters as the majority of products in question… will be included from Q1 FY2023,” the company said.
“Peak has completed a review of its procurement practices and entire supply chain to identify mitigation opportunities to deal with current global supply chain interruptions.”
An annual review of operating expenditure has also identified cost savings of $1m, mainly from corporate overheads, which Althea said will be implemented in the current quarter.