Elixinol Wellness has confirmed Ron Dufficy as its new global CEO and plans to reduce its reliance on its CBD portfolio in favour of plant-based wellness products.
Dufficy has been interim global CEO since the departure of Oliver Horn in April and was previously the group’s global chief financial officer.
Elixinol has now completed a strategic review resulting in a reduced cost base and confirmation of its strategy to diversify further towards natural/plant-based wellness products and away from its CBD portfolio.
It also confirmed that “the core assets of Hemp Foods Australia (HFA) and Elixinol America are both well positioned with strong brands, occupying positions of strategic value as the industry continues to evolve”.
Elixinol added it was “continuing to consider and evaluate options for shareholder value creation when opportunities arise”, having said during the review process that it it was considering a “merger, sale or other options for the company as a whole or its business units”.
The company reported Q2 FY22 revenue of A$1.7m, up 13% on the previous quarter, while operating cash used was down 36% to $2.1m. It finished the quarter with $8.5m in funds, including $6.9m in cash and an additional $1.6m expected from US Covid-19 relief measures.
HFA’s revenue was up 8% on Q1 to $877k, driven by increased sales to Costco and strong consumer uptake of its new flavoured protein powder range. During the quarter, HFA also confirmed that Coles will be stocking its new Seed Mix in 830 stores nationwide by the end of September.
Dufficy said: “Following the strategic review process, we are excited to confirm our strategy to further reposition ourselves as a natural wellness business with a heritage in hemp to unlock opportunities in the fast-growing natural and plant-based wellness space.
“I am confident that our continued focus on driving efficiencies will contribute to further improvement in cashflow and business profitability in the coming quarters; and we expect the upcoming launches of new products will help drive further revenue growth.”