Cann Group has downgraded its revenue forecast for FY21, from A$8-10 million to $4-5 million, blaming Covid-19 interruptions to supply chains.
Cann predicted revenue of $15 million at its AGM in November 2020, but issued new guidance of $8-10 million in February.
Cann told the ASX timelines for international regulatory approvals have blown out while third-party manufacturing and supply issues have caused temporary delays in shipping product to local and export customers.
The company has written $3.2m in revenue so far this financial year, but said it expects the balance of the FY21 original forecast to be received in FY22.
Cann recently dispatched more than 20,000 bottles of cannabis extract to its German partner iuvo Therapeutics and described early sales through the channel as “promising”. It said it is working with its customers to build a pipeline of orders for manufacture and delivery in FY22.
It added in a statement: “The company continues to work with its customers and relevant authorities to expedite regulatory approvals and clearances as required, both locally and in overseas markets. Having achieved several such approvals and clearances to date, the company anticipates now moving to a more streamlined order and fulfilment cycle, particularly to Germany.”
Cann Group CEO Peter Crock said: “We have continued to make really important headway this year, and while timelines have been frustratingly drawn out, in some part due to Covid, the achievements we have made in securing regulatory pathways, and the foundations we have set for supply to Australian patients and export markets, stands us in good stead.
“We have also strengthened our future revenue base with the recent acquisition of Satipharm and access to an important differentiated technology platform. Further, we have demonstrated an ability to deliver sizeable orders to our customers, as shown by our delivery to iuvo last month.”