Althea Group Holdings (ASX:AGH) Revises FY25 Financial Guidance
Financial Guidance Revision
Althea Group Holdings (ASX:AGH) has updated its FY25 revenue forecast to $26 million-$33 million and adjusted EBITDA to $0.8 million-$1.1 million, down from previous projections of $50 million-$57 million in revenue and $4 million-$5.5 million in EBITDA.
Key Drivers of Revision
The revision is driven by a 60% reduction in Althea’s pharmaceutical cannabis sales due to market challenges, supply chain disruptions, and increased competition in Australia and the UK. Additionally, the company has abandoned its vape project, which was expected to contribute up to $8.2 million in revenue and $720,000 in EBITDA for FY25.
Positive Momentum and Strategic Outlook
Despite the revised guidance, AGH is restructuring its pharmaceutical business to enhance efficiency and focus on B2B opportunities. Peak Processing Solutions continues to perform well in Canada, and Peak USA is establishing its presence in the US market.
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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