Elixinol Wellness has completed the sale of its US business and reported a narrowed first half loss, with revenue up 5.8 per cent to $7.2 million and gross margin close to 10 per cent higher as the group concentrates on its Australian food and wellness brands.
The ASX-listed company reported gross margin of 43.2 per cent for the half to 30 June 2026, up from 33.5 per cent, which it attributed to a greater contribution from higher margin brands and an improved product and channel mix. Operating expenses fell $1.1 million or 25 per cent to $3.3 million on lower employee, marketing, distribution and administration costs.
Adjusted EBITDA loss narrowed by $2.0 million to $0.1 million, and the statutory net loss after tax halved to $1.1 million, including a $0.1 million loss from the discontinued US business. Net operating cash outflow reduced 49 per cent to $0.7 million, without the benefit of the $0.5 million insurance recovery booked in the prior corresponding half.
|
H1 FY26 snapshot |
H1 FY26 |
H1 FY25 |
|
Revenue (continuing operations) |
$7.2m |
$6.8m |
|
Gross margin |
43.2% |
33.5% |
|
Operating expenses |
$3.3m |
$4.4m |
|
Adjusted EBITDA |
$(0.1)m |
$(2.1)m |
|
Statutory net loss after tax |
$(1.1)m |
$(3.1)m |
|
Net operating cash outflow |
$(0.7)m |
$(1.4)m |
|
Cash at period end |
$1.0m |
$1.1m |
Revenue growth came from three Australian brands. Hemp Foods Australia lifted revenue 14.1 per cent to $2.87 million with gross margin improving to 48 per cent. The Healthy Chef, acquired in 2024, grew 22.2 per cent to $2.07 million on ecommerce and a Priceline Pharmacy rollout. Hemp Ingredients rose 16.4 per cent to $1.33 million with gross margin improving to 38 per cent.
Those gains were partly offset by a $0.5 million decline attributed to retailer consolidation at Mt Elephant and the discontinuation of duplicate hemp brands. Australian segment revenue totalled $7.19 million.
US divestment completed
The sale of Elixinol LLC to Ananda Health, Inc. completed on 4 September 2026, under an asset purchase agreement. Headline consideration is approximately $465,000, comprising $250,000 upfront, released from escrow and expected to be received on 7 September, and up to $215,000 in deferred and contingent proceeds, including a regulatory contingent payment and a revenue-based earn-out.
The US business was classified as held for sale and discontinued at 30 June 2026, carrying $181,000 in assets and $354,000 in liabilities. Its loss narrowed to $98,000 from $152,000. Transitional operational, customer service and marketing support runs for up to six weeks from completion. Elixinol retains the Elixinol brand outside the US.
The company said the divestment reduces its exposure to the US regulatory environment for hemp-derived products and concentrates resources on the Australian portfolio.
Ananda Health is the US nutraceutical business of ASX-listed hemp group Ecofibre, which engaged HighBank Advisors in 2025 to explore a sale of all or part of that business. Elixinol acquired Ananda Food from Ecofibre in 2024 for $3.16 million.
H2 priorities
Elixinol said second half priorities are sustaining the operating cash flow improvement and driving growth through new retail distribution, product launches and additional B2B contracts. The Healthy Chef is in a stage one rollout across approximately 410 Priceline stores, Mt Elephant is targeting national grocery expansion, and the hemp ingredients business supplies two major grocery retailers under contracts extending to 2027. The group said it continues to assess acquisitions that use its existing infrastructure and distribution.
