Business News Australia reports…
With a share price that has doubled since listing on the ASX in March, great expectations have surrounded Australian hemp company Ecofibre (ASX: EOF) ahead of its results announcement today and the numbers are unlikely to disappoint.
Ecofibre’s revenue for FY19 was up 519 per cent at $35.6 million while net profit after tax jumped 170 per cent to $6 million.
This follows on from an announcement earlier this month that the number of US pharmacies stocking the company’s Ananda Professional CBD oil had hit the 3,000 mark, up from just around 500 this time last year.
The surge in value meant the group – which sells hemp-based nutraceuticals in the US and is one of Australia’s largest growers of hemp foods – reached a market capitalisation of around $912 million, far exceeding its ASX peers in the cannabis and hemp space.
But Ecofibre’s rise to fame has almost come out of nowhere. When chairman and major financial backer Barry Lambert (pictured) got involved with Ecofibre in 2015, his main motivation was to find a healthy alternative to treat his granddaughter’s epileptic condition.
The Countplus founder and his wife had already given $33.7 million to the University of Sydney for research into cannabinoid therapeutics; an initiative later replicated at the largest medical university in the US, Thomas Jefferson University in Philadelphia.