Greenfern Industries (GFI) H2 2024 earnings summary

Executive summary

• Achieved first export of medicinal cannabis to the EU, expanding international reach and validating quality standards.

• Revenue declined 40% year-over-year to $0.3M, but net loss after tax improved by 23% to $1.5M, moving closer to breakeven.

• Expanded production with a new GACP-certified facility, enabling up to 11 harvests per year and forecast output of 350-450kg.

• Australian partnership with Cannvalate wound down, impacting revenue, but Australia remains a key growth focus.

• Continued investment in R&D, including a world-first water-soluble hemp protein isolate nearing commercialisation.

Financial highlights

• Operating revenue fell to $327,894 from $550,876 year-over-year.

• Net loss after tax improved to $1,572,706 from $2,021,542 year-over-year.

• Gross profit was $230,302, down from $487,365 year-over-year.

• Cash and cash equivalents decreased to $185,808 from $922,607 year-over-year.

• No dividends declared or paid for the year.

Outlook and guidance

• Anticipates consistent growth and increased revenues in FY25 as business model normalises and production scales.

• Plans to expand market presence in the EU and Australia, with GMP certification under consideration to access higher-value markets.

• Expects regulatory relaxation in NZ medicinal cannabis scheme, potentially easing market access.

• Targeting breakeven in FY25 and profitability in FY26.