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One of Australia's leading medicinal cannabis companies is counting the cost of a depressed market that was exacerbated by shutdowns and civil unrest in the US during FY21, although its hemp textiles and foods businesses have shown green shoots.
In its preliminary financial report released today, Sydney-headquartered Ecofibre (ASX: EOF) revealed a 43 per cent drop in revenue to $28.8 million, with a drastic change in fortunes for its bottom line that went from a $13.2 million profit in FY20 to a $7 million loss.
The lower earnings were driven by impacts on the group's Ananda Health division which sells a variety of cannabidiol (CBD) oil-based health, wellness and skincare solutions to pharmacies across the US.
The segment went from a $20.8 million profit before tax in the previous year to just $289,000 in the recent period, following a 69 per cent drop in sales.
On a more positive note, sales from its hemp-based textiles company Hemp Black almost quintupled to hit $11.9 million, while Ecofibre's Ananda Food division - which sells flour, seed, protein and oil manufactured from Tasmanian-grown hemp to the likes of Woolworths, Coles and IGA - recorded a 78 per cent uptick in sales to $2.67 million.
Neither the textile nor the food business managed to turn a profit however, with losses before tax of around $1 million and $1.5 million respectively.
Related story: Australia's top 20 cannabis companies
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