ASX-listed Ecofibre has reported a A$7m loss in FY21 fuelled by falling sales from its Ananda Health division in the US.
Ecofibre’s revenue fell by 43% to A$28.8m in FY21, with profit falling from $13.2m in FY20 to a $7m loss, according to the company’s preliminary financial report.
Revenue from the firm’s CBD health, wellness and skincare solutions arm Ananda Health fell from $46.8m in FY20 to $14.3m in FY21 as a result of a decline in US sales where Covid lockdowns and civil unrest impacted distribution via pharmacies.
Ecofibre said it is investing in Ananda Health’s Australian operation via doctor and pharmacist education for Schedule 4 and Schedule 8 products and a clinical trial to support a Schedule 3 over-the-counter application.
Sales from hemp-based textiles company Hemp Black soared to $11.9m from $2.4m the previous year while Ananda Food — which distributes via Woolworths, Coles and IGA — recorded sales of $2.6m, up from $1.5m in FY20. However, both businesses recorded losses before tax of $1.01m and nearly $1.5m respectively.
Strategy management consultant Vanessa Wallace joined the Ecofibre board as deputy chair on July 1, 2021, positioning her to take over as chair when industry stalwart Barry Lambert steps down at this year’s annual meeting.