Althea Group Holdings (AGH) has posted total revenue of A$25.09 million for FY23, a 22% increase on FY22, with its Australian division achieving its highest sales on record.
Australian customer revenue reached $12.18m across the financial year, representing a nearly 17% rise compared to the same period the prior year.
AGH stated that the bulk of its sales came from the cannabis extracts category, where it said it holds "the dominant market share in Australia".
Group losses grew to $13.73m, a 13% increase on the prior corresponding period. The company closed the year with cash and cash equivalents of $3.88m, down from $6.21m at the close of FY22.
Net cash used in operating activities came to $6.29 million, a 31% reduction on the prior year, which AGH credited to cost-cutting measures introduced during FY23 that it expects to "flow through to statutory financial reporting in the first half of FY24".
Throughout the year, the group raised $2.2m in capital and secured an additional $4.32 million in funding to support its growth plans.
CEO Josh Fegan told shareholders that the company's high-THC flower product, launched in Australia in Q2 FY23, had delivered "rapid sales growth", becoming its top-selling product by the end of the financial year.
He added: "The company expects sales to continue to grow strongly in FY24, as existing cannabis dried flower prescribers migrate customers to Althea, given our outstanding reputation in the medical community along with our ethical approach to the sale and distribution of cannabis-based medicines."
Althea also introduced its first 25mg CBD soft-gel capsule in September 2022, developed in partnership with FoliuMed. Fegan predicted that sales of the format would surpass oils (tinctures) over time "given its familiarity and ease of use".
The company is also working on an expanded range of dried flower products, with the launch expected to occur in the first half of FY24.
"New product development remains critical to sustaining market leadership in a competitive and dynamic industry," Fegan said.
In the company's annual financial report, Fegan repeated claims first made in July that $3.2m in sales were lost as a result of supply chain disruptions triggered by TGO93 reforms, which took effect that month.
He wrote: "Announced by the TGA in 2022 and providing less than 15 months lead time, the new regulations relating to product conformity resulted in the company having to review and pivot many aspects of its supply chain, including but not limited to product specifications, packaging and labelling.
"As part of the supply chain transition, the company experienced multiple delays which resulted in several high-selling products being temporarily out of stock during the reporting period.
"It is estimated that the stock outages resulted in a loss of sales of approximately $3.2m. The Australian sales team have a solid strategy in place to regain lost sales in the first half of FY24. Product supply to the Australian market, along with all international markets, has returned to normal and no further disruptions are anticipated."
