• Mernova Medicinal has achieved its highest ever monthly revenue of nearly $900k in October
  • Company has already received more than $600k of product orders for November providing a bumper start to the quarter
  • ME1 reports ~$7.5 million in unaudited revenue across group in Q3 FY23, a 265% increase on the prior corresponding period
  • Net cash used in operations during Q3 FY23 was $0.34m vs. $2.37m in Q2 FY23

 

Melodiol Global Health’s Canadian subsidiary Mernova Medicinal has achieved its highest ever monthly revenue of nearly $900k in October with already purchase orders of over $600k in November.

Melodiol Global Health (ASX:ME1) says its wholly-owned Canadian subsidiary Mernova Medicinal has received $899,512 (C$782,184) of purchase orders for its dried cannabis flower, pre-roll joints and electronic vaporiser products.

The products were sold under Mernova’s established Ritual brand with the record-setting month of sales including an order of A$573,873 (C$499,020) from the Nova Scotia Liquor Corporation (NSLC).

ME1’s wholly-owned recreational cannabis division, Mernova is gaining increasing momentum in Nova Scotia, which is currently the company’s largest sales generating province in Canada.

The company is undertaking work to replicate the strong growth and traction in Nova Scotia through other Canadian provinces, with revenue growth anticipated to continue over coming months.

 

Bumper November forecast 

October’s strong performance is forecast to replicated in November, with $602,836 (C$524,205) worth of product orders already received for the month.

Record October revenues follow strong sales growth for Mernova during Q3 FY23 of ~$1.85m (C$1,58 million), which was a 104% YoY increase on the same period last year.

Mernova managing director Micheline Mackay says its pleasing to see ongoing increases in purchase orders and record monthly sales.

“Our current inventory is moving very quickly,” she says.

She says the positive data provides shareholders a strong confidence that revenue will continue to grow in Q4 FY2023, which will result in a record year for this division.”

 

Strong Q3 FY23 for ME1

ME1 reported ~$7.5 million in unaudited revenue across its group of companies in Q3 FY23, a 265% increase on pcp and a 58% rise on last quarter.

Net cash used in operations was $340k in Q3 FY23 versus $2.37 million in Q2 FY23 with total unaudited FY23 revenue generated to date now more than $14.54 million – a record for the company.

Consistent revenue growth was underpinned by Mernova, which delivered $1.85 million in revenue for the quarter.

ME1’s recently acquired subsidiary Health House International (HHI) generated unaudited revenue of $4.85 million, including $2.99 million in net revenue from its Australian operations.

HHI’s Australian operations delivered an unaudited net profit of $312,548 during the quarter.

ME1 says HHI’s 10% profit margin reflects well-established operating procedures on costs of goods sold and a strong sales network across several leading Australian pharmacies.

Record cash receipts from customers during the quarter of $8.27 million was up 60% on the prior quarter.

CEO and managing director William Lay says its Q3 FY23 results showcase ME1’s ability to continues to deliver on its stated strategy of driving revenue growth through optimised operations and strategic M&A, while maintaining a stringent focus on costs.

“Pleasingly, both Mernova and Health House International have made strong revenue contributions at the group level, with HHI’s Australian division also achieving profitability,” he says.

 

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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