• Melodiol revenue for the third quarter up 265% to $7.5m over the PCP
  • Strong sales performance from Australian subsidiary Health House International and Canadian subsidiary Mernova Medicinal the drivers for growth
  • Australian operations deliver net profit of $312,548 during the quarter
  • Company to focus on continuing growth while keeping costs in check during Q4

 

Record sales – particularly from its Canadian operations – have delivered Melodiol revenue of $7.5m for the third quarter, up 58% from the previous quarter. 

It also represents the company’s third straight quarter of strong growth and was underpinned by two of the Company’s divisions – Mernova Medicinal and Health House International.

Earlier this month, the company also noted that its wholly-owned subsidiary Mernova Medicinal had achieved its third consecutive quarter of revenue growth with A$1.85 million in unaudited sales due to large purchase orders from province partners for its dried cannabis flower, pre-roll joints and electronic vaporiser products.

This was up 20% on the previous quarter and 104% on the previous corresponding period.

New branding was also introduced for the company’s Ritual brand during Q3 FY23, which positively impacted consumer behaviour across major Canadian markets.

Canada represents a lucrative market for Melodiol Global Health (ASX:ME1) as cannabis is legalised for both medicinal and recreational use.

Its market is projected to reach US$2.9bn in 2023, and with an expected annual growth rate of 15.4%, its market volume will hit $US7.98bn by 2028.

Image: Supplied

 

Australian operations generating profit

The strong results from Mernova helped the company deliver a revenue of $7.5m in Q3 2023, a 265% increase in revenue PCP and 58% higher than the Q2 revenue of $4.74m.

It also takes year to date revenue up to $14.54m, reflecting the company’s ability to streamline operations and focus on high growth revenue generating opportunities in key international markets.

Besides the contribution from Mernova, Melodiol also recorded revenue of $4.87m from Health House International including $2.99m in net revenue from its Australian operations.

Health House International’s Australian operations also generated an unaudited net profit of $312,548 during the quarter, a reflecting its well-established operating procedures on cost of goods sold and a strong sales network across several leading Australian pharmacies.

“We are very pleased to report these unaudited results for the Melodiol Group of companies, which has highlighted a record quarter of growth,” managing director William Lay said.

“Pleasingly, results are underpinned by very strong growth through wholly-owned subsdiary, Health House International which demonstrates the company’s strategic priority to generate growth through strategic M&A and the acquisition of HHI marks successful execution in that regard.

“As we enter Q4, the company remains focused on continuing its growth trajectory, while maintaining stringent on costs. We look forward to providing additional updates in the coming weeks.”

 

 

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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