Little Green Pharma saw losses deepen in the first half of the financial year despite overseeing a positive EBITDA result and significantly higher revenue.
The company posted a H1 loss of A$3.5 million, a 59% increase on the same period last year.
Revenue jumped almost 37% to $17.5m, which helped drive an adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) result of $268,000, up from a negative of $511,000.
LGP attributed the positive EBITDA result to a growth in sales and “early signs of economies of scale”.
Meanwhile, revenue growth was down to greater sales both domestically and internationally and “across most product categories”, the firm said.
In addition, LGP reported positive operating cash flows of $738,000, a major improvement on the outflows of $1.8m the previous year.
Expenditure increased from $16.6m to $21m, largely a result of a $2.2m rise in raw materials and consumables used in operations.
Higher distribution costs, share payments of $1m and an asset write down of $800,000 also contributed to rising costs.
LGP said its Australian performance was partially driven by its CherryCo brand “despite rising competition”.
