ASX-listed medical cannabis company Althea Group (ASX:AGH) has reported revenue growth of 175% in the first half of FY 2020/21, taking a “significant share” of the Australian and UK medical cannabis market.
Althea released their first-half results to shareholders recently, reporting total revenue of $5.1 million from July to December 2020. Compared to the year before, a 175.3% increase in revenue.
Their good fortune comes from expanding operations in Australia, Canada, and the UK.
In Australia, Althea’s patient numbers tripled from the year before, as Australians joined the Special Access Scheme in droves. At the end of 2020, Althea had 12,273 patients and its products were prescribed by 834 doctors.
In the UK, Althea’s sales increased by 90% from November to December 2020 – earning the company $209,706. Although Althea was the first Australian cannabis company to bet on the European bud market, their bid is paying off, as their licenses were granted and 2,000 units (worth $1 million) of their CBD oil have reached their partner Nimbus Health.
Finally, Althea’s revenue growth was driven by the success of its Canadian subsidiary, Peak Processing. Peak Processing was only granted a Standard Processing License in September but has already secured CAD $4.65 million in supply deals with the likes of Blum Beverages and the Tinley Beverage Company (CSE:TNY).
Althea announced another deal for Peak Processing just days ago, as the company expands further into Canada’s adult-use cannabis market.
While their expansion has pleased investors, it has also drained their bank account. As of December 31st, the company had a cash balance of $8,644,000 – down from $22,361,000 the year before.
According to Althea’s CEO Joshua Fegan, however, the company is “on track” to deliver its corporate objectives.
I am very proud of our Australian and UK teams for producing record revenue in the second half of 2020.
Althea’s share price has risen by nearly 100% in the past year – making them one of the most prominent cannabis stocks on the ASX.