Key points
- Reduced revenue forecast from $50-57M to $26-33M
- Adjusted EBITDA guidance lowered from $4-5.5M to $0.8-1.1M
- Abandonment of vape product initiative
Full summary
Althea Group Holdings Limited (ASX:AGH), a global leader in the manufacturing, sales and distribution of cannabis-based medicines and recreational cannabis products, has concluded the previously announced review of its FY25 financial guidance. The company has revised its guidance for the financial year ending 30 June 2025 to reflect the current business environment and operational outlook. AGH now expects revenue in the range of $26 million and $33 million and positive adjusted EBITDA in the range of $0.8 million and $1.1 million, down from the previous projections of revenue between $50 million and $57 million and positive adjusted EBITDA in the range of $4 million to $5.5 million. The key drivers of the revision include a reduction in Althea's medicinal cannabis sales, reflecting ongoing market challenges, prolonged supply chain disruptions, and increasing competitive pressures, as well as the abandonment of the company's planned vape product initiative. While these factors have resulted in a revision of guidance, AGH remains confident in the business's core strengths and future growth drivers, including the restructuring of its pharmaceutical business, the continued performance of its Peak Processing Solutions business in Canada, and the momentum in its Peak USA operations.
Guidance
AGH now expects revenue in the range of $26 million and $33 million and positive adjusted EBITDA in the range of $0.8 million and $1.1 million for the full year ending 30 June 2025.
Outlook
AGH remains confident in the business's core strengths and future growth drivers, including the restructuring of its pharmaceutical business, the continued performance of its Peak Processing Solutions business in Canada, and the momentum in its Peak USA operations.