Melodiol’s FY23 revenue exceeds $20m as acquisition strategy proves successful

Q4 sales to date take total FY23 revenue to over ~$20 million, a 130% increase on total FY22 revenues of $8.69m
Growth underpinned by ongoing sales momentum across global network of fully-owned subsidiaries, in particular Mernova Medicinal Inc. and Health House International

Special Report: Christmas has come for the acquisitive Melodiol Global Health with unaudited revenue of ~$5.942 million generated so far in Q4 FY23, underlining its continued strong progress.

Cannabis play Melodiol Global Health (ASX:ME1) says preliminary revenue in the 4th quarter to date already take FY23 revenue to ~$20m, already up 130% on FY22.

Growth driven by subsidiaries

Q4 FY23 growth has been driven by sales from ME1’s wholly-owned Canadian subsidiary, Mernova Medicinal Inc along with its 100%-owned operating division Health House International (HHI).

Mernova is a licensed producer of cannabis products in Canada for sale under the Ritual brand banner and its year-to-date revenue is now more than $4.95 million for FY23.

Cannabis is legalised in Canada for both medicinal and recreational use with ME1 saying Mernova has further growth potential.

ME1 recently announced unaudited figures for the Australian division of HHI showing it generated sales of ~$1 million in October with consistent monthly sales of ~$1 million per month during Q3 FY23.

When adjusted for cost of goods sold (COGS) and operating expenses, HHI Australia was EBITDA positive and over the last 12 months has generated ~$14 million of revenue with an EBITDA margin of 12.7%.

Result validates growth-by-acquisition strategy

CEO and Managing Director William Lay says Q4 FY23 revenue to date and the projected annual revenue result further validates ME1’s growth-by-acquisition strategy, with both Mernova and HHI delivering the group a material uplift in sales, cash flow and net earnings.

Lay is confident each division will continue to generate consistent sales through the course of December 2023.

“Over the course of FY23, the company has been focused on optimising operations to deliver high revenue opportunities, while maintaining a focus on costs,” he says.

“During Q4 FY23, Melodiol delivered on this goal, which lays a strong foundation for FY24.

“We look forward to providing further updates on Q4 FY23 sales over the coming weeks as additional revenue materialises.”

Lay says ME1 remains increasingly focused on its stated strategy of maintaining high revenue growth across the group, with an emphasis on cost management as it targets a cash-flow breakeven position.

This article was developed in collaboration with Melodiol Global Health, a Stockhead advertiser at the time of publishing.  

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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