Althea's Q1 FY25 performance

Althea Group Holdings (ASX:AGH) has unveiled its business update for the first quarter of fiscal year 2025. The company reported a revenue of $8.3 million, driven by strong sales in the recreational cannabis market. Operating cash flow was positive at $304,000. Althea has set its FY25 revenue guidance between $50 million and $57 million, with an EBITDA forecast ranging from $4 million to $5.5 million.

Overview and future outlook for Althea

Althea Group Holdings has demonstrated strong performance in the first quarter of FY25 with significant revenue contributions from recreational cannabis sales, particularly in Canada. The company is focusing on expanding its US operations by establishing an emulsion lab in Florida in collaboration with Flora Growth. This expansion aligns with Althea's goal to capture the growing US market for cannabis-infused beverages. Additionally, through strategic divestments and cost-cutting measures, Althea aims to enhance operational efficiency and shareholder value. The company's FY25 guidance reflects its ambition to achieve substantial revenue growth and solidify its position in the competitive cannabis market.

Executive insights on Althea's progress

The company aims to build a strong financial base through unique cannabis beverages and targeted growth initiatives, creating a defensible moat for long-term value creation.