Shares in Little Green Pharma soared more than a third today (Thursday, October 17) as the company reported a cash flow positive quarter and record revenue.
Unaudited sales climbed beyond A$10 million for the quarter ending September 30, up 40% on the previous three-month period and almost 60% higher than the same quarter last year.
It took LGP’s half-year revenue to almost $19m.
The encouraging performance saw the company report net cash inflows of $1m and $600,000 for the half year.
The market reacted positively to the news with shares climbing 36% to $0.12c.
Revenue was driven by a 45% increase in oil sales and a 35% rise in flower, although vapes fell 20% off a low base.
In Australia, flower and oil sales climbed 30% and 35% respectively while Europe saw growth of 60% and 110%.
Following lengthy involvement in a pilot program to trial medicinal cannabis, a commercial shipment of $650k was sent to France with a second batch of similar size delivered in early October.
In addition to the strong sales performance, LGP said economies of scale were emerging, demonstrated by a 30% rise in cash receipts and a 15% decrease in operating cash costs.
The second quarter saw LGP launch a new brand, Indicare, with initial THC 22 sativa and THC 20 indica product lines released through the Special Access Scheme.
Its CherryCo brand continued to show promise with sales up 50% on the prior quarter despite the launch of what LGP described as “me-too” products.
Meanwhile, sales of LGP-branded products climbed 30% with sales reported into France, the UK and Switzerland. Revenue generated from white-label contracts increased 35%, the company said.
LGP said it remained well funded with $4.8m in the bank at the end of September, up from $4.3m.
