Little Green Pharma Reports Record Revenue, Fueled by European Growth and French Market Potential
Australia-based cannabis grower and producer, Little Green Pharma (LPG), has announced record revenue for the quarter ending September 30, 2023. The company reported unaudited revenue of AU$10.2 million (approximately $6.85 million), marking a 40% increase from the previous quarter and a nearly 60% jump from the same period last year.
This impressive growth is attributed to robust demand in European markets, particularly France, where the company anticipates full legalization of medical marijuana by 2025. This shift in regulatory landscape could significantly impact the French market, potentially transitioning millions of individuals who currently consume cannabis illegally to medical use.
Product Category Performance
Little Green Pharma’s success is reflected in its product category performance. Oil sales witnessed a 45% increase, driven by growth in both France and Australia. Flower sales also saw a significant surge, exceeding 35%, driven by both the company’s own brands and white-label sales. However, vaporizer sales declined by 20% during the quarter.
Financial Highlights
Beyond revenue, the company also reported positive financial indicators:
* Cash receipts of AU$10.8 million, representing a more than 30% increase from the previous quarter.
* Net operating cash inflow exceeding AU$1.0 million, resulting in a cash-flow-positive quarter of AU$600,000.
* Anticipated annual cost savings of AU$500,000 through subcontracting Australian cultivation operations.
* Cash on hand increased from AU$4.3 million to AU$4.8 million.
European Market Potential
The company highlights the German, U.K., and French cannabis markets as key drivers of growth in European demand. During the reporting quarter, Little Green Pharma experienced a 60% increase in flower sales to Europe, with a remarkable 110% surge in French oil sales.
Paul Long, the company’s chief executive, believes that the legalization of medical marijuana in France could significantly impact the market, potentially shifting the majority of French cannabis consumers from the illicit to the medical market. The United Nations estimates that approximately 6.8 million French people use marijuana illegally.
Global Cannabis Market Outlook
According to the Office of Drug Control, Australia produced 23 tons of cannabis for its domestic market in 2022, with an additional 1,500 kg exported overseas. Industry experts anticipate significant growth in these figures as European countries continue to update their cannabis laws.
Little Green Pharma’s strong financial performance and the expanding European cannabis market present a promising future for the company. The company’s focus on high-quality products and strategic market positioning seem to be driving its success, positioning it as a key player in the growing global medical cannabis industry.