An A$8 million tax break helped push Little Green Pharma into the black in the 12 months to March as its chief executive described the year as one of “strong growth, resilience and opportunity”.
Releasing its FY25 results this morning, the company reported an after-tax profit of $3.3m, a vast improvement on the $8.15m loss the previous year.
Revenue jumped 43% to almost $37m, while adjusted EBITDA hit $2.9m, up from a $1.6 loss in FY24.
Shares in LGP climbed 5% this morning to 11c.
However, excluding the $8.11m income tax benefit, LGP reported a loss of $4.7m, a 41% improvement on FY24.
LGP was also unable to repeat its positive operating cash flow position of a year ago, reporting a $917,000 deficit.
Expenditure climbed from $35.5m to $42.6m, largely due to a doubling of raw material costs.
Figures in the report illustrate the dominance of flower, which accounted for 63% of revenue.
Sales climbed almost 50% to $23.2m, while oil jumped 26% to $10.9m. Revenue generated from vapes increased 66% to $1.1m.
Geographically, sales in Australia contributed $30m, up from $22.4m, while European sales more than doubled to $6.7m.
Writing in the firm’s annual report, CEO Paul Long said the performance came against a backdrop of “significant regulatory change and intense competition”.
“FY2025 has been a year of strong growth, resilience and opportunity for Little Green Pharma,” he said. “Our strategy of vertical integration and one-stop-shop supply continues to underpin our success, enabling us to deliver high-quality products efficiently and at scale.”
Long said the “highly competitive” sectors in Australia and Europe were primed for consolidation over the next six to 12 months, with LGP “exceptionally well-positioned” to emerge “as an industry leader”.
While LGP reported a positive EBITDA result “many of our peers are entering administration or exiting the market”, he said.
“Our acquisition of our Danish asset and more recently of Health House serves as a model for how we will approach future opportunities and demonstrates our capability to execute successful acquisitions,” he said.