Althea Group Holdings Ltd (ASX: AGH) shares are soaring higher today following the company's release of its quarterly update. At the time of writing, the Althea share price is trading 8% higher at 54 cents.
Let's take a look and see how Althea performed for the September quarter.
What's driving the Althea share price higher?
The Althea share price is marching higher today after the company delivered a strong result for the period ending 30 September, despite COVID-19 restrictions remaining in place.
Althea highlighted an increase in total group revenue of $2.1 million, up 32% on the prior quarter. The record amount was achieved by the launch of Althea's online platform for medical cannabis products in Australia. In addition, its United Kingdom segment grew by 104% on a month-by-month basis, to record more than $75,000 in revenue.
Cash receipts for the three months came to $2 million, representing a 36% increase from the June period. Althea advised it expects to break-even within the March 2021 quarter.
The company also revealed it added 943 patients in Australia, a 27% jump, bringing the total number of patients to 9,683. The number of healthcare professionals that have prescribed Althea's cannabis products rose to 696, up 18% on the June period.
The company's subsidiary, Peak Processing Solutions, continued to reach company milestones during the reporting period. Customers have committed to sales worth over $650,000 following the grant of its health licence.
Althea disclosed it holds a cash position of $6.98 million and is in a good position to accomplish its growth strategies.
Management commentary
Althea CEO, Josh Fegan, commenting on the robust performance, said:
The September quarter has been an important period for the Company, as we have continued strong quarter on quarter growth, with a 32% increase in revenues from the previous reporting period. With Peak Processing Solutions having received its Standard Processing License from Health Canada last month and already entering into commercial agreements with customers, our shareholders can continue to expect strong revenue growth for the December 2020 quarter.
Our patient numbers have also continued to experience a strong increase in Australia and with revenue more than doubling in the UK in September, we anticipate companywide break-even within the March 2021 quarter.
Should you invest?
The Althea share price has been on the rise over the last three months, outstripping the All Ordinaries Index (ASX: XAO) by over 40%. Of course past performance is no guarantee of future performance. Personally, I'm inclined to sit on the side lines with today's Althea share price as the medical cannabis industry is too volatile for me.
