Melodiol’s Health House International delivers strong financial result to validate growth strategy
Health & Biotech
Health & Biotech
Health House Australia and UK operating units have become the second and third Melodiol Global Health subsidiaries to achieve a cash flow or adjusted EBITDA positive result.
Melodiol Global Health Limited (ASX:ME1) has announced recent financial results of its wholly-owned Australian subsidiary Health House International (HHI), which highlight consistently strong 2023 growth in revenue and adjusted EBITDA across its operating divisions in Australia and the UK.
For the five-month period ended May 31 2023, HHI generated combined currency-adjusted unaudited revenues of $9.55 million.
Top-line revenue growth flowed through to unaudited adjusted EBITDA in operating units for the period of $897k reflecting an adjusted EBITDA margin of 9.3%.
Health House Australia and UK operating units have now become the second and third ME1 business units to achieve a cash flow or adjusted EBITDA positive result.
ME1’s wholly-owned Canadian subsidiary Mernova Medicinal Inc achieved a cash flow positive Q1 FY23.
Health House is an international pharmaceutical distributor, specialising in the distribution of medicinal cannabis products in Australia and medical products in the UK.
ME1 completed the acquisition of HHI in May 2023 and has been assisting its management drive sales growth and operating efficiencies several months prior to the acquisition.
The company said recent results from both Health House and Mernova provide considerable validation of its strategy to grow revenue with a strategic focus on cost management at the business group level to achieve cash flow breakeven.
ME1 said it’s confident that it will continue this trajectory across other business units in the coming quarters.
“The company is very pleased to have delivered such strong results on behalf of Health House’s Australian and UK operating businesses, which are now the second and third Melodiol business divisions to achieve a quarter of cash flow or adjusted EBITDA break even position,” CEO William Lay said.
“The results follow a considerable amount of hard work from the existing HHI management team, and I would like to congratulate them for their persistence and determination since joining the Melodiol group of companies.
“HHI continues to witness very strong demand for its medicinal cannabis products in Australia and the UK and we are confident that the company’s growth trajectory will continue over the coming months.”
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.