Althea Group Holdings (ASX:AGH) Reports Quarterly Results
Financial Performance
Althea Group Holdings (AGH) reported $9.01 million in receipts from customers for the quarter ending 31 December 2024, reflecting a 20% increase from the previous quarter. However, AGH’s sales have fallen short of budget expectations, prompting a revision of the FY25 market guidance. Net cash used in operating activities for the quarter was $1.19 million, with a total of $16.53 million in cash receipts recorded for the first half of FY25.
In December 2024, AGH secured $2 million funding through an unsecured loan notes placement, which will aid operational activities. The company has also navigated challenges related to corporate governance, leading to a temporary suspension of trading.
Operational Highlights
The recreational cannabis division, Peak Processing Solutions, achieved $6.25 million in receipts for the quarter, also up 20% year-on-year. The business completed its inaugural commercial manufacturing run in the US, signalling a promising entry into the THC beverages market. Traditional seasonal trends are noted, with expectations for stronger sales in the upcoming warmer months.
In the pharmaceutical sector, Althea reported cash receipts of $2.75 million but continues to recover from stock outages stemming from supply chain issues since late 2023. Following a comprehensive review, leadership changes and cost-reduction strategies were implemented, delivering $1.4 million in annualised savings starting January 2025.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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