Ecofibre has flagged the potential sale of its cannabinoid health business, Ananda Health.
The US-based operation manufactures CBD products for distribution in Australia and the US targeting sleep, anxiety, pain and gynaecological conditions under the Ananda Professional and Ananda Hemp brands.
Ananda Hemp was inspired by Katelyn Lambert – the granddaughter of former Ecofibre chairman Barry Lambert – who was diagnosed with Dravet Syndrome at the age of eight and underwent a dramatic improvement in her health after using a cannabis extract.
But the division’s sales have remained sluggish, delivering revenue of A$1.7 million in the three months to March, down from $2.7m in the previous corresponding period.
Ecofibre said it has engaged US financial consultancy HighBank Advisors to explore a possible sale of all or part of Ananda Health.
“The value of the business is expected to be maximised in combination with a strategic partner in a similar industry, such as CBD, plant extracts or nutraceuticals,” the company said. “There is also an expectation that the significant production capacity available in the business will be attractive to industry participants looking to onshore production in the US.”
Overall revenue for Ecofibre totalled $5.4m in the quarter, down 8% on Q2 and 33% lower than the same period last year.
Elixinol
Elixinol reported revenues of A$3.5 million in the three months to March, up nearly 14% on the previous corresponding period but down 19% on the record $4.3m reported in the final quarter of 2024.
The company attributed the fall to the delayed introduction of new product lines for Hemp Foods Australia (HFA), The Healthy Chef and Mt Elephant, the phasing out of the Hemp Gold Protein product at CostCo and promotional rebates.
HFA generated revenue of $1.03m in the quarter, down $520,000 from Q4, while The Healthy Chef delivered sales of $738,000.
Meanwhile, Mt Elephant and Aust Superfoods generated revenue of $233,000 and $330,000, while its US business delivered sales of $451,000.
Elixinol reported a net cash operational deficit of $626,000.
