Little Green Pharma (LGP) reported an operational loss of A$4.2m in the year to June 30, a 44% improvement on the previous year, amid a sharp rise in revenue.

Sales of medicinal cannabis products climbed more than 200% to a little over $7m, with patient numbers increasing from 4,550 to more than 15,000.

The Perth-based company reported a headline pre-tax profit of $24.6m, a figure predominantly down to the “gain on the bargain purchase of the Denmark facility of $24.9m”.

Denmark deal: LGP said the gain it made on the ‘bargain purchase’ of the facility was behind a headline profit of $24.6m

But while LGP’s gross margins climbed from 51% to 61%, expenditure of almost $10m saw operational losses remain in the red.

Investment in sales and marketing grew 45% to $2.1m, research and development expenditure increased 77% to $1.78m while licence, permit and compliance costs climbed 53% to $1.86m.

In addition to the acquisition of the Danish facility, which gives management a foothold in Europe, LGP said the year saw progress in overseas markets, with products being delivered in Germany, the UK, France, New Zealand and Brazil.

“The company also signed a five-year distribution agreement with Balancial in Denmark as well as an exclusive distribution agreement in Poland with a subsidiary of Pelion SA, the largest operator in the Polish and Lithuanian healthcare sector,” it said.  

LGP reported a cash balance of $40.2m.

Shares held largely steady at $0.715 giving LGP a market cap of almost $170m.