Althea has reaffirmed its goal of reaching operating profitability and cashflow break-even in March, even as losses deepened through the first half of the financial year.
Revenue grew 26% to just under A$12 million, but after-tax losses still climbed 32% to $9.4m.
On a more encouraging note, the net cash used in operating activities between July and December narrowed from $5.54m to $5.37m, which the company attributed to the revenue growth and "tight financial controls".
Althea held $3m in cash and cash equivalents at the close of the period, down from $6.2m at the end of June.
Despite the headline loss widening, chief executive Josh Fegan described the company as being in a "solid financial position" and told shareholders they could expect "significant upside" in the near term.
Australian revenue reached $6.2m, while Peak, the company's Canada-based recreational division, generated $4.5m. Both figures were roughly 25% higher than the prior corresponding period.
Oil products continued to drive the bulk of Australian revenue, though Fegan noted that flower sales were climbing at a rapid pace. Over a longer horizon, he said softgel capsules — introduced by Althea in September — are expected to surpass oil "given its superior performance and ease of use".
Revenue from the UK slipped to $955,000, a shortfall the company linked to stock disruptions caused by an industry-wide product review conducted by the Medicines and Healthcare Regulatory Agency (MHRA).
"As a result of the review, a number of suppliers in the UK had products removed from sale due to a lack of conformity, a situation Althea intends to take full advantage of," the company said, noting that its own products had passed the MHRA review.
In Germany, sales reached $40,000 and were described as "continuing to build at a steady rate".
Althea said it expects 2023 to be a "breakout year [in Germany] as smaller brands retreat and Althea's medical education program begins to bear fruit".
Fegan said: "The company continued to grow revenue during the first half of FY23 despite encountering some transitory headwinds and supply chain issues in the second quarter.
"Althea is in a very solid financial position, is fast approaching cashflow positivity with improved margins, and envisions significant upside for shareholders in the short term and beyond."
Gross profit margins for the period reached a record 61%, a result the company credited to declining flower prices and its increased "buying power".
