Melodiol Posts $1.6m in Early Q3 Revenue as Health House Integration Takes Hold

The Cannabis Observer ·
Melodiol Posts $1.6m in Early Q3 Revenue as Health House Integration Takes Hold

Melodiol Global Health has recorded A$1.6 million in unaudited revenue across the opening six weeks of Q3 CY23, with Health House International credited as delivering a "strong contribution" to the result.

The company's share price climbed more than 50% last week after it revealed group revenue had doubled in the April-to-June quarter.

That momentum has carried into Q3, the company said, with healthy revenue figures and fresh purchase orders providing a "solid foundation" heading into the back half of the year.

Year-to-date sales of $8.6m are now just $100,000 short of Melodiol's total revenue figure for the whole of 2022.

Unaudited Q2 sales rose 105% to A$4.7 million, a result that was partly driven by a strong showing from Health House International (HHI).

Melodiol only closed the HHI acquisition in mid-May, meaning the business contributed just six weeks of trading revenue to the Q2 numbers, yet the company said HHI "has materially expanded the scale and market penetration of Melodiol's international operations".

Earlier this month, Melodiol, formerly known as Creso Pharma, disclosed that HHI generated revenue of $9.55m across the five months to May.

The Q2 result helped lift half-year group revenue to $7m, a 64% increase on the same period a year earlier.

Shares jumped 54% late last week, reaching $0.010c before pulling back to $0.009c.

Even after that gain, the stock remains well short of its 52-week high of $0.050c, reached last July.

Melodiol's management expressed confidence in the trajectory suggested by the latest numbers.

Chief executive Will Lay said: "The material uplift in revenues on a quarter-by-quarter basis is further evidence of the group's operating momentum and sets the company up for an exciting second half of the year following the integration of HHI in Q2."

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