• Consolidated net loss reduced by 90.8% to $1.5 million
• Peak Processing Solutions revenue up 57.9% to $8.2 million
• Completed sale of MyAccess Clinics, reducing annual costs by $1.5 million

Althea Group Holdings Limited reported a significant improvement in its financial performance for the first half of the 2025 financial year. The company's consolidated net loss was reduced by 90.8% to $1.5 million, compared to $16.6 million in the previous corresponding period. This was largely attributable to cost reduction measures, improved working capital management, and a more streamlined operational focus following the divestment of non-core assets. The company's recreational cannabis business, Peak Processing Solutions, continued to deliver strong growth, with revenue rising 57.9% to $8.2 million. Peak's Q2 cash receipts were up 20% year-on-year, confirming strong demand for its THC beverages. Peak USA also successfully completed its first commercial production run at its Florida-based emulsion facility, marking an important step in establishing a presence in the U.S. market.In contrast, the pharmaceutical cannabis division, Althea, faced supply challenges, leading to a revenue decline. However, the company has implemented operational cost reduction strategies, generating $1.4 million in annualized cost savings. Leadership changes and a strategic review have also been undertaken to realign Althea's market strategy with a focus on operational efficiency and sustainable growth.During the period, the company announced the completion of the sale of its MyAccess Clinics business in the UK and Ireland. This led to a $1.5 million reduction in annual operating expenses and a sharpened strategic focus on the group's core business areas.The directors remain confident in the group's ability to execute its operational strategy, with a clear focus on scaling THC beverage production, driving cost efficiencies, and positioning the business for sustainable growth in the second half of the financial year.

The company has secured $4 million in new funding commitments, which will be used to support ongoing growth initiatives, particularly in expanding Peak Processing Solutions' production capacity and reinforcing Althea's operational stability.

The company's key priorities for the second half of FY2025 include scaling Peak's THC beverage production to meet rising demand, driving further operational efficiencies to improve profitability and cash flow, and continuing Althea's stabilisation strategy with a focus on inventory reliability, cost control, and targeted market growth.