Melodial Global Health delivers record revenue quarter with 105pc uptick in group sales
Health & Biotech
Health & Biotech
Melodial’s targeted M&A strategy is starting to pay off as its subsidiaries Heart Health International and Mernova boost revenue across the group to deliver a record quarter.
Melodiol Global Health (ASX:ME1) has reported a material acceleration in group revenues in the June quarter with strong quarterly growth across the company’s two fully-owned subsidiaries.
For the June quarter, ME1 reported preliminary net sales of $4.74 million, up 105% from the previous quarter and 202% higher than the prior year comparative period.
The increase in net sales takes unaudited sales for the first half of CY23 to $7.05 million, which marks a 64% uplift on H1 CY22.
Group revenues in Q2 were boosted by the strong contribution from its subsidiary Health House International (HHI), a medicinal cannabis distributor which ME1 acquired in May.
Revenue contributions for the quarter from HHI to ME1 were from May 16 to June 30, 2023 following closure of the acquisition.
ME1 said the acquisition and smooth integration of HHI has materially expanded the scale and market penetration of its international operations.
Leveraging its established market channels in Australia and the UK, HHI reported strong top-line growth in Q2 and the company is expected to underpin further operating momentum in the second half of the year.
ME1’s other subsidiary Mernova also helped boost group sales, delivering a 42% increase in sales on PCP to round-out record half-year sales of $3.095 million.
Mernova is a leading supplier of recreational cannabis products in the Canadian market.
ME1 said the Q2 sales result represents another key milestone and validates the company’s strategy of seeking growth through targeted M&A capitalising on the leadership team’s unique understanding of market forces underpinning the global cannabis industry.
With a record Q2 sales result, ME1 is focused on consolidating its market momentum following successful integration of HHI, and driving further growth in revenue and EBITDA across its core operating divisions.
Concurrently, ME1 is maintaining a strategic focus on R&D and regulatory pathways for the application of novel treatments to complement its established revenue channels.
Ongoing work in this market was highlighted by a recent Letter of Intent (LOI) to enter an exclusive commercial relationship with Swiss pharmaceutical company Apotheke Dr. Hysek AG for the supply of GMP MDMA and synthetic psilocybin products to the Australian market.
CEO William Lay said the group revenue result is pleasing and highlights the work carried out by the board and management team to establish a diversified supplier of best-in-class cannabis products across global markets.
“The material uplift in revenues on a quarter-on-quarter basis is further evidence of the group’s operating momentum and sets the company up for an exciting second half of the year following the integration of HHI in Q2,” he said.
“With revenue momentum now established, we look forward to providing more updates on both our trading operations along with our work as a first mover in the market for novel treatment therapies that currently have an untapped addressable market.”
This article was developed in collaboration with Melodial 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.