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.
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.
