Cann Group expects record revenue growth of 111% in FY23

Image credit: Cann Group Limited

Pharmaceutical company Cann Group Limited announced its FY23 unaudited results, with its operating revenue expected to be approximately $13.5 million, representing growth of 111 per cent or 2.1 times compared to the prior year revenue.

In particular, sales of dried flower products experienced a revenue rise of around 500 per cent over FY22 due to the strong market demand, and this is the foundation for future development as the firm increases production.

In a press release, the ASX-listed company said the domestic market was the main driver of this development, and multiple repeat businesses from existing customers helped to sustain the strong sales momentum.

Cann’s capacity to offer consistent quality, GMP products from its flagship plant in Mildura, accomplished via cutting-edge cultivation and production techniques, has aided in customer acquisition. 

According to the company, Mildura’s production output in FY23 was 2.2 tonnes. 

The greatest crop in the history of the company, representing an annualised yield of 8 tonnes, was planted by Cann in May 2023, and in July 2023, this crop will be harvested.

Cann Group CEO, Peter Koetsier said, “The growth in revenue shows that we are building sales momentum that helps underpin the confidence we have in our ambitious growth targets.”

He added that the company’s approach is based on scaling production to meet consumer demand. 

With manufacturing output expanding at an astonishing rate, Koetsier added that Australia has the unique capacity to scale to large levels right now and leverage on the fast-growing demand for quality, locally grown and made products. 

“As we continue to accelerate the scale-up of production over the next 18 months, we expect to gain substantial efficiencies, improved margins and strong operating leverage and these elements are expected to provide a path to EBITDA profitability,” the CEO noted. 

Founded in 2014, Cann Group is the first Australian company to secure the necessary licences to undertake research and cultivate cannabis for human medicinal and research purposes.

The company has research facilities and corporate headquarters in Melbourne and operates a state-of-the-art large-scale cultivation and GMP manufacturing facility near Mildura, Victoria. 

Cann Group supplies a range of dried flower and oil products, as well as active pharmaceutical ingredients and extracts, to customers in Australia and around the world.