ASX cannabis share Althea Group Holdings Ltd (ASX: AGH) leapt by as much as 27% this morning after the company revealed record quarterly sales of $9.24 million.
The company also achieved its maiden monthly operating profit in March, and now expects its first quarter of profit in June.
Althea manufactures, sells, and distributes cannabis-based medicines and recreational products globally.
Shares in Althea are currently changing hands for 5.1 cents, 13.3% up on yesterday's close of 4.5 cents.
In earlier trading, they hit an intraday high of 5.7 cents, up 26.6%.
Let's look at the detail in the report.
Althea share price soars on 68% increase in sales
The company reported the following results for the three months to 31 March:
- $9.24 million in cash receipts, up 68% on the prior corresponding period (pcp)
- Net cash outflows of $1.63 million, down 24% pcp
- Cash and cash equivalents of $5.3 million as of 31 March
What happened to this ASX cannabis share in March?
Althea has two business divisions — recreational cannabis and pharmaceutical cannabis.
The company reported a record $5.15 million in receipts for recreational cannabis during the March quarter, up 57% compared to the December 2022 quarter.
It also reported a record $3.75 million in receipts for medicinal cannabis, up 11% on December.
Althea recorded its maiden monthly operating profit in the month of March.
The ASX cannabis share is flying today on this news and may get a further boost if the company makes good on its expectations of a maiden quarterly profit in June.
Althea also said operating expenses fell during the March quarter as a result of cost-cutting programs.
In other news during the quarter, Althea announced it had secured a CAD$2 million loan facility from lenders in Canada.
In addition, the company announced a further $2.2 million of convertible debt funding. This was provided by an institutional investor in the United States.
The ASX cannabis share fell by 16.7% between 1 January and 31 March.
The S&P/ASX All Ordinaries Index (ASX: XAO) rose by 2.1% over the same time frame.
'A landmark turning point' says CEO
Althea CEO Joshua Fegan said:
March 2023 was a landmark turning point for the Company as we achieved record monthly cash receipts and a maiden monthly operating profit.
To close out the Quarter with such a strong month (March) sets us up well for an expected substantial improvement in cash flow position, and a quarterly operating profit, for the final quarter of FY23.
