Elixinol Wellness advised the Australian Securities Exchange that it is exploring multiple possibilities, including potential mergers and acquisitions, as part of an ongoing strategic review.
Although revenues dropped by 38% from A$15m to A$9.3m during FY21, the company cut expenses effectively, resulting in losses falling by half from A$23.2m in FY20 to A$11.5m in FY21.
Hemp Foods Australia contributed A$4.1m in revenue, down A$100k compared with FY20, while achieving a 33% reduction in losses to A$200k.
Management attributed margin improvement—rising from 45% to 52%—to its strategic emphasis on branded products and direct e-commerce distribution.
Global CEO Oliver Horn said: "Overall, we are pleased with the progress made on our transformation through FY21. We have created a leaner consumer products wellness company with leading brands that are strongly positioned [for] long-term growth.
"Our FY22 priorities reflect our focus on delivering value to shareholders. Through our previously announced strategic review, we are taking the natural next step toward improving shareholder returns.
"We are considering all options, including merger, sale or other options for the company as a whole or as business units."
During FY21, Elixinol allocated significant resources to building an international research and development function focused on producing innovative nutritional supplements and functional food solutions, achieving substantial progress.
The company has brought to market an Elixinol CBD product line for animals and Hemp Foods Australia's hemp-based paste product.
