Cannabis oil with leaf

Cannabis company BOD Australia paves the way for future growth

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BOD Australia (ASX:BDA) has had an exciting year for shareholders, increasing nearly 300% over the past 52 weeks on the back of strong local, and international operations.

The rise in share price hasn’t just been hype either, with the company delivering record sales and revenue across the multiple industries they operate in. Their CBD and hemp product sales grew a whopping 1,040% in the first half of FY21 to reach $1.45 million, while revenue from medical cannabis prescriptions grew to $679,894 – an increase of 85% from the previous corresponding period.

BOD’s strong company growth lines up perfectly with steps forwards in cannabis-related regulations around the world.

BOD Australia Logo 1

Locally, the TGA recently moved CBD products to Schedule 3 – meaning patients are now able to purchase CBD products over the counter without a doctor’s prescription. While pharmacies across Australia saw droves of patients looking to buy the medicines and seek more information, unfortunately, it’s unlikely any products will be available for at least a couple of years.

Globally, the UN voted to remove cannabis from Schedule IV of the Single Convention on Narcotic Drugs, whilst the US is likely set to decriminalise cannabis on a federal level, and Mexico is poised to become the world’s largest legal cannabis market.

BOD’s product offerings

Focusing on two main areas, medical cannabis and CBD/hemp consumer products, BOD’s partnership with the Health & Happiness Group (H&H) – the parent company of Swisse – has allowed them to now sell hemp seed products across more than 2,000 locations around the world under the Swisse brand. Countries include the UK, the Netherlands, and Italy, with further expansion across Europe and the US planned.

In Italy alone, BOD and H&H will launch hemp products in more than 4,000 pharmacies around the country as well as selling through various Ecommerce platforms. H&H have also signed a $200,000 binding purchase order for hemp seed oil to be sold in France.

Locally, you can find BOD’s hemp products sold in pharmacies such as Chemist Warehouse, Coles, and Priceline.

Their hemp products aren’t the only ones doing well, with BOD filling 3,941 MediCabilis™ prescriptions, increasing 114% on the previous period. Both patients and doctors seem to be highly satisfied with the medicine, as 64% of those were repeat prescriptions.

USA expansion

The US continues to be the market maker when it comes to recreational and medical cannabis – which is where BOD plans on heading soon.

In 2020, BOD’s hemp oil and CBD products received the Generally Recognised as Safe (GRAS) registration, meaning they can be used in various food products in accordance with FDA guidelines.

BOD Australia products under Swisse

Although no sales have been made yet, the potential is vast. And with H&H already having an established presence in the US, BOD could be set to see a large new source of revenue. Similar to other countries, they plan to launch their products directly to customers as well as through recognised retailers.

BOD’s future

Despite total revenue already increasing 62% to $3.3 million in the first half of FY21, strong growth in both the local and global demand for BOD’s products should see their revenue continue to grow even more.

On top of their plans to expand into more pharmacies and the American food industry, BOD has also reached an agreement with LYPHE Group – a leading medical cannabis service provider and distribution company. This will see LYPHE become BOD’s preferred dispensary for Project 21, Europe’s largest medical cannabis registry.

Should BOD continue on its current path and further expand its operations, they will likely expand their market share of Australia’s full plant, high CBD products – of which they already claim 57% of.

BOD shareholders and stakeholders should be quite excited where the company is heading. Especially when their CEO, Joanne Patterson, owns more than 6.5 million shares in the company.

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Stay informed with the latest cannabis news in Australia.

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