Melodiol Global Health Ltd (ASX:ME1)'s Canadian subsidiary Mernova Medicinal Inc has delivered record half-yearly sales of A$3.095 million in the first half of 2023 following continued demand for its leading range of recreational cannabis products in the Canadian market.
During the June quarter, Mernova registered unaudited sales of A$1.547 million, marking a 42% surge compared to the previous corresponding period in 2022.
The subsidiary's overall unaudited sales for the first half stood at A$3.095 million, indicating a 20% increase over the prior corresponding period.
The company also highlighted a robust start to the September quarter, with confirmed purchase orders amounting to A$298,000 as of July to-date.
This promising figure underscores the company's successful sales and distribution strategies, which are geared towards stimulating growth in the upcoming months.
Accelerated sales trajectory
Melodiol CEO and managing director William Lay said: "This sales result is further evidence that Mernova is establishing strong momentum in the Canadian market and the group's accelerated sales trajectory over the first half of the year validates its ongoing strategy of seeking revenue growth with a disciplined focus on cost management.
"The group has a number of product development initiatives underway, as well as product ranging opportunities in discussion with several large distribution partners which have the potential to underpin ongoing growth."
Enviable position
The ongoing growth in revenue is underpinned by Mernova's enviable position in the Canadian recreational cannabis market.
Mernova is selling its range of dried flower, pre-roll joint and electronic vaporiser products in many of the country's major provinces.
Expansion on the cards
The division has also kicked off its international expansion efforts alongside leading North American regulatory and scientific cannabis consulting agency, CannDelta Inc., in a push to fast-track cannabis exports to Australia and Europe.
As part of that process, Mernova has initiated an application to obtain a European Good Manufacturing Practice licensing process for its Canadian manufacturing facility in Nova Scotia, with work well underway on this project.