Melodiol Global Health Ltd (ASX:ME1), a health company specialising in medicinal and recreational cannabis products, has recorded what it’s calling a record-breaking financial performance for the quarter, with group sales soaring by 105%.
Surge on last year’s figures
The company reported unaudited net sales of A$4.74 million for the combined Melodiol group, representing a 105% increase compared to the previous quarter and a staggering 202% surge compared to the same period last year.
Strong sales growth in the second quarter has propelled Melodiol's net sales for the first half of the 2023 calendar year to A$7.06 million, marking a 64% increase over the first half of 2022 when A$4.31 million in net sales was recorded.
A contributing factor to Melodiol's revenue surge was the inclusion of Health House International, a leading global supplier of medicinal cannabis, which Melodiol acquired in the middle of the second quarter.
Health House helped
The revenues from Health House International, spanning from May 16 to June 30 this year, significantly boosted Melodiol's overall sales. The company expects further growth from this division in the coming months, as it continues to integrate and leverage Health House International's market presence and distribution channels in Australia and the UK.
Melodiol's subsidiaries also played a pivotal role in driving the company's growth. Mernova Medicinal Inc, a prominent supplier of recreational cannabis products in the Canadian market, achieved a remarkable 42% increase in sales during the quarter, contributing to a record half-year sales figure of A$3.095 million.
The pleasing second-quarter sales result reflects Melodiol's strategic focus on targeted mergers and acquisitions, capitalising on its board and management team's deep understanding of the global cannabis industry.
The integration of Health House International has expanded the company's international operations, while its existing market channels in Australia and the UK have supported strong growth.
Consolidating momentum
Moving forward, Melodiol aims to consolidate its market momentum and drive further revenue and EBITDA growth across its core operating divisions.
The company also remains committed to research and development efforts, exploring novel treatments and regulatory pathways to complement its established revenue channels.
The company recently announced a Letter of Intent to establish an exclusive commercial relationship with Apotheke Dr Hysek AG, a Swiss pharmaceutical company, to supply GMP MDMA and synthetic psilocybin products to the Australian market, highlighting the company's ongoing work in this sector.
CEO William Lay said: “This group revenue result is particularly pleasing for Melodiol and highlights the work carried out by the board and management team to establish itself as 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.
“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.”