Ecofibre has indicated it may put its cannabinoid health arm, Ananda Health, up for sale.
The US-based division produces CBD products sold in Australia and the United States, targeting conditions including sleep disorders, anxiety, pain and gynaecological health under the Ananda Professional and Ananda Hemp brands.
Ananda Hemp's origins trace back to Katelyn Lambert — the granddaughter of former Ecofibre chairman Barry Lambert — who was diagnosed with Dravet Syndrome at age eight and experienced a dramatic improvement in her health after using a cannabis extract.
Despite that history, the division's sales have struggled, with revenue coming in at A$1.7 million for the three months to March — a significant drop from $2.7m in the same quarter a year earlier.
Ecofibre has brought on US financial advisory firm HighBank Advisors to assess options for a full or partial sale of Ananda Health.
"The value of the business is expected to be maximised in combination with a strategic partner in a similar industry, such as CBD, plant extracts or nutraceuticals," the company said. "There is also an expectation that the significant production capacity available in the business will be attractive to industry participants looking to onshore production in the US."
Ecofibre's total quarterly revenue reached $5.4m, a decline of 8% on Q2 and 33% below the equivalent period the prior year.
Elixinol
Elixinol posted revenues of A$3.5 million in the March quarter, nearly 14% higher than the same period last year but down 19% from the record $4.3m recorded in the final quarter of 2024.
The company pointed to delayed new product launches across Hemp Foods Australia (HFA), The Healthy Chef and Mt Elephant, alongside the phase-out of the Hemp Gold Protein line at CostCo and promotional rebates, as the reasons behind the decline.
HFA brought in $1.03m for the quarter, a fall of $520,000 from Q4, while The Healthy Chef recorded sales of $738,000.
Mt Elephant and Aust Superfoods contributed $233,000 and $330,000 respectively, and Elixinol's US operations generated $451,000 in sales.
The company reported a net cash operational deficit of $626,000.
