Melodiol subsidiary HHI Australia delivers $1 million revenue in October

Melodiol subsidiary Health House International Australia delivers ~$1 million in revenue for October
Strong October performance continues progress from Q3 revenue of ~$3 million
12 month sales are ~$14 million, with EBITDA margin 12.7%

Special Report: Melodiol Global Health says it is delivering on its strategy to bring core operating subsidiaries to profitability with its fully owned subsidiary Health House International (HHI Australia) generating $1 million in October.

Melodiol Global Health (ASX:ME1) says unaudited figures for the Australian division of its HHI show it generated sales of ~$1 million in October with consistent monthly sales of ~$1 million per month during Q3 FY23.

HHI is focused on the international distribution of medicinal cannabis, and possesses several strategic licenses to store, distribute, import, and export-controlled drugs.

ME1 says adjusted for cost of goods sold (COGS) and operating expenses, HHI Australia was EBITDA positive with a healthy margin of 10.1%.

Q3 FY23 represented the first full quarter of integrated operations for HHI within the ME1 portfolio, after it completed the strategic acquisition in May 2023.

ME1 says over the last twelve HHI Australia has generated ~$14million of revenue with an EBITDA margin of 12.7%.

ME1 says HHI Australia’s latest result confirms the strong traction it has established as a leading distributor of medicinal cannabis products through a diversified network of pharmacy customers.

M&A strategy paying off

ME1’s wholly-owned Canadian subsidiary Mernova Medicinal Inc recently achieved its third consecutive quarter of record revenues.

Mernova is a a licensed producer of cannabis products in Canada for sale under the Ritual brand banner.

ME1 has built a diverse portfolio of plant-based brands in high growth market segments and geographies. Its other subsidiaries include:

Sierra Sage Herbs – US based developer of plant based first aid and beauty and personal care brands Green Goo, Southern Butter, and Good Goo.
impactive – CBD topical products for athletes.
Halucenex Life Sciences – Clinical stage psychedelics research and development operation.
Creso Pharma Switzerland – CBD related research, development, and commercialisation.

CEO William Lay says HHI Australia’s and Mernova’s strong performance is the first step of consistent execution toward its strategy to bring core operating subsidiaries to profitability, in turn adding to ME1’s financial profile as time goes on.

“We are pleased to report these unaudited results for HHI Australia,” he says.

“As previously communicated to market, it’s a strategic priority of Melodiol to generate growth through strategic M&A and the acquisition of HHI marks successful execution in that regard.

“We look forward to reporting on further growth going forward, as HHI continues to leverage its established position as a leading distributor of medicinal cannabis products in Australia.”

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.