Melodiol record unaudited Q1 FY24 revenue of $4.1m, a 79% increase on Q1 FY23
Result follows strong FY23 revenue of $21.6m, an increase of 148% on FY22
Subsidiary Mernova Medicinal the main driver – generating $1.7m in sales for Q1 FY24
Special Report: Melodiol Global Health has generated $4.1 million in unaudited revenues for Q1 FY24, a 79% increase on the prior corresponding period, providing what it says is a ‘strong foundation for the remainder of FY24’.
Melodiol Global Health’s (ASX: ME1) wholly-owned recreational cannabis subsidiary Mernova Medicinal was the main driver, recording $1.7 million in revenue for Q1 FY24 to build on the strong momentum generating by the division in FY23.
Mernova’s high-quality recreational cannabis products, sold under the Ritual brand, continues to experience robust demand across major Canadian provincial markets.
ME1 recently announced recent approvals for the listing of new stock keeping units (SKUs) across existing markets have bolstered Mernova’s prospects further.
Mernova already has more than $550k worth of purchase orders secured for delivery in the Q2 FY24, providing considerable potential upside to round out H1 CY24.
Health House Australia poised for growth
ME1 says its wholly-owned subsidiary Health House Australia (HHA) also contributed significantly to the Q1 FY24 revenues, generating $1.8 million.
The company says leveraging its position as a trusted supplier in the burgeoning Australian medical cannabis landscape HHA has solidified its presence and positioned it for further growth.
The Health House Wellness Clinic is due to be launched in Q2 FY24 and is further expected to amplify its contributions, laying a robust foundation for sustained sales growth.
ME1 announced in April the launch of the Health House Wellness Clinic, which is expected to attract and add new suppliers to the group’s portfolio.
HHA has added several new suppliers to its existing base including Botanitech, Chemovar, Endoca, Quantum.
MedTEC Pharma has also chosen HHA as its lead launch partner for the introduction of their Australian-grown flower and oil medicines, slated for Q2 of CY24.
The continued addition of new suppliers to its portfolio is a core strategic objective of HHA.
CEO and managing director William Lay says since being Australia’s first company to import medicinal cannabis in 2017, HHA’s unwavering commitment to great service and integrity has led to it becoming one of the trusted names within the distribution of medical cannabis in Australia.
Health House UK sees strong demand
Meanwhile, Health House UK delivered $647,000 in revenue during the quarter, reflecting strong demand.
Combined, Health House Australia and UK contributed $11.4 million in revenue to ME1’s group results during FY23. Group revenue of $21.6 million in FY23, a 148% increase on FY22.
ME1 acquired Heart Health International, which was previously listed on the ASX, in May 2023 as part of its strategy to build a diverse portfolio of plant-based brands in high growth market segments and geographies.
The company specialises in the distribution of medicinal cannabis products in Australia and other international markets.
“I am very proud of our global teams for the strong start they have delivered to FY24,” Lay says.
“We continue to see strong demand and engagement from customers across our business units and are working diligently towards growing our substantial revenue base.”
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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