Elixinol Global Releases Chairman’s 2019 AGM Address

  • May 24, 2019 AEST
  • Team Kalkine
Elixinol Global Releases Chairman’s 2019 AGM Address

Elixinol Global Limited (ASX: EXL) is engaged in the manufacturing and distribution of industrial hemp, CBD and THC products. It was officially listed on ASX in January 2018.

The Chairman of the company, Andrew Duff, addressed the shareholders at the company’s AGM. The AGM was held on 23rd May 2019, the company released the chairman’s letter to the exchange along with FY18 performance.

Mr Duff stated that looking back at the accomplishments in FY18, ELX made significant progress in its first year as a listed company. In FY18, the company undertook various steps towards its goals of being a market leader in the hemp and the rising cannabis sectors. Elixinol, a top performing business of the company, was accounted for ~87% of Elixinol Global Sales and demonstrated sustained Q-o-Q growth during FY18. The strong performance was supported by the company’s strategy to grow its share in the rapidly growing CBD dietary supplement and wellness products market.

EXL made multiple vital investments during or post the period. The company invested in farming venture with Kersey Ag, (the Northern Colorado High Plains Producers joint venture) to back its hemp supply in April 2018. This puts the company in a good position to meet raw material needs for 2019. The company acquired 25% holding in a market leading US-based CBD pet products company, namely Pet Releaf in April 2019.

Elixinol Global Limited has the opportunity to leverage its strong brand and reputation with respect to quality in a fast-growing industry. For building scale and focus its attention on growth, the company will continue to re-invest its profits.

In another update, the company released its CEO Presentation for the investors on 23rd May 2019, which included key growth drivers, such as new ongoing product developments comprising skincare and pet health-related products. The first large retail distribution agreement was signed in the US and Europe in April 2019, with further agreements expected in the remainder of FY19.

Separately, turning to the financial part of the business. EXL witnessed a rise of 121% to $37.1 million in group revenue, which was driven by the continued strong sales by Elixinol. The company closed FY18 with a strong balance sheet and net cash of $42.7 million to drive international growth. The underlying EBITDA stood at $0.7 million in FY18 compared to a loss of $0.02 million loss in FY17 on a pro forma basis. Furthermore, Hemp Foods Australia had invested for top line growth during FY18, which resulted in revenue to jump to $4.9 million, an increase of 51% on FY17.

Looking at the strategic outlook of the company. EXL intends to capture the substantial global growth opportunity in the hemp, CBD and medical cannabis market and to become one of the top-five CBD businesses in Europe. The company plans to roll-out five plus new products through the group in FY19.

On the stock performance front. At the time of writing (on 24 May 2019, AEST 01:30 PM), the stock of EXL was trading at $5.200, with a market capitalisation of $666.64 million.


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