Mernova Medicinal Inc, the Canadian subsidiary of Melodiol Global Health Ltd (ASX:ME1), has achieved its third consecutive quarter of growth, delivering A$1.85 million in unaudited revenue for the three-month period ending on September 30, 2023.
This compares to the previous quarter's revenue of $1.55 million and $907,042 a year ago, representing growth of 20% and 104%, respectively and brings the total year-to-date revenue to more than $4.95 million, underscoring the division's consistent and robust growth trajectory.
The higher sales can be attributed to several factors, including substantial purchase orders from provincial partners for Mernova's dried cannabis flower, pre-roll joints and electronic vaporizer products, all of which fall under the Ritual brand.
Furthermore, the introduction of new branding for Ritual during the third quarter had a positive impact on consumer behaviour in major Canadian markets.
Looking ahead
The company anticipates further growth during the fourth quarter, fuelled by a slew of purchase orders totalling about $869,699, which will be fulfilled in the coming weeks.
This includes a $573,873 order from the Nova Scotia Liquor Corporation, signalling Mernova's continued momentum in Canada and particularly in Nova Scotia, its largest sales-generating province.
Commanding market share
“Mernova has delivered another strong quarter of revenue growth,” ME1 chief executive officer and managing director William Lay said.
“It is also particularly pleasing to have doubled sales generated during the previous corresponding period.
“These results, coupled with the purchase orders the company has received for Q4 FY23, highlight the dominant footprint that the division is building across Canada.
“During the period, the board and management undertook a number of steps to drive sales growth.
“These included the introduction of new branding for the Ritual range, as well as increased engagement with province partners.
“We are very confident that these initiatives have laid a strong foundation for future increases in sales and I look forward to providing further updates as they materialise.”