Australian Cannabis Producer Little Green Pharma Reports Record Revenue, 80% Increase In European Sales QoQ

Australia-based cannabis grower and producer Little Green Pharma LPG reported its financial results for the quarter ended Sep 30, revealing unaudited record revenue of AU$10.2 million ($6.85 million). This marks a 40% increase from the prior quarter and nearly 60% from the corresponding quarter last year.

By product category, the company saw a 45% increase in oil sales, driven by growth in both France and Australia, and over a 35% increase in flower sales, driven by both the company’s brands and white-label sales. At the same time, vaporizer sales declined 20%.

Quarterly Financial Highlights

• Cash receipts of AU$10.8 million, up more than 30% from the prior quarter;
• Net operating cash inflow of more than AU$1.0 million, resulting in a cash-flow-positive quarter of AU$600,000;
• Cost savings of AU$500,000 per year expected from subcontracting Australian cultivation operations;
• Cash in bank of AU$4.8 million up from AU$4.3 million.

Read Also: Cannabis Earnings Update: Marijuana Lenders And Top Operator To Report Results, Here’s What Investors Need To Know

• Get Benzinga’s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. If you’re serious about the business, you can’t afford to miss out.

European Potential

The company noted that the German, U.K. and French cannabis markets are driving strong growth in European industry demand. In the reporting quarter, the company had a 60% increase in flower sales to Europe, with more than a 110% increase in French oil sales.

The company recently revealed it expects France to fully legalize medical marijuana in 2025. According to the company’s chief executive Paul Long, this could shift the majority of French people, who consume cannabis illegally, to medical use. According to the United Nations, some 6.8 million French people use marijuana illegally.

“People have this preconceived idea that cannabis is … just chasing a high,” Long previously said. “What we’ve seen [with] the patients coming from the illicit market to the medical [is] the lion’s share — 70 to 80% — have actually been self-prescribed.”

According to data from the Office of Drug Control, Australia produced 23 tons for the domestic market in 2022, with some 1,500 kg exported overseas. The industry contends that these figures will grow significantly as Europe updates its laws.

Read Next:

• France’s Cannabis Plans Face Delays, Israel’s Secret Weed Lab And More Global Updates

Photo: Courtesy of Branding Pot via Shutterstock