Vitura Health's share price dropped 10% on Thursday despite the company reporting an after-tax profit of A$13.8 million for the financial year — more than twice what it earned the year prior.
Revenue grew 75% to $117.3 million, with medicinal cannabis product sales accounting for $115 million of that total, a 65% increase on FY22.
The company moved 945,000 units — a 94% jump on FY22 — while its clinic division, which covers the now telehealth-only CDA Clinics and Cannadoc, brought in $1.6 million in consultation fees.
Vitura has confirmed it will pay a dividend of one cent per ordinary share, making this the second consecutive year shareholders receive a return.
Despite net profit after tax climbing 128% compared to FY22, shares closed 10% lower at $0.39, placing the company's market value at $217 million.
Some observers attributed the share price decline to a 2.5 percentage point drop in gross product margin to 33.7%, though the company pushed back on that interpretation.
Chief executive Rodney Cocks said: "We don't think [the share price fall] has got anything to do with the margin. The market is looking for a reason but we don't think that is it. The selling was too ferocious for that to be the case.
"We think there may be former insiders who took an opportunity to sell shares on market. But it's pure speculation."
Vitura attributed the margin contraction to a higher share of sales coming from third-party brands "which typically result in a lower gross margin."
The company said the decline was "more than offset by operating efficiencies" with expenses as a percentage of gross revenue falling from 24% to 18%.
"As a result, the net profit before tax margin of 17% was a material improvement from less than 15% in the prior year," Vitura said.
Cocks said: "We are incredibly proud of Vitura's record growth during the 2023 financial year and it is gratifying that the company can share its success with its shareholders in a very tangible way.
"We've achieved significant revenue growth over the financial year, while at the same time increasing our NPAT [net profit after tax], demonstrating achievement of significant operational leverage and sound cost containment."
He outlined that the "immediate strategic priorities" for the coming financial year include deploying its expanded medical service liaison team to bring more prescribers onto the CanView platform and rolling out "a data-driven engagement strategy across Australia."
During FY23, Vitura added 257 doctors to CanView, bringing the total to 978, and the platform gained 841 new pharmacy accounts, with the overall count now exceeding 4,000.
On the subject of the dividend, Cocks said: "Vitura remains the first and only ASX-listed company operating in the medicinal cannabis space to report a profit and, for a second time, the only one to declare a dividend.
"Based on the hard work of the Vitura team, it is gratifying that the company can share its success with its shareholders in such a very tangible way – and we thank our loyal shareholders for their continued support."
