Melodiol Global Health Limited (ASX:ME1) (‘Melodiol’ or ‘the Company’) is pleased to provide the following update on progress for the three month period ended 31 March 2024 (the ‘quarter’), as well as its Appendix 4C. All financial results are in Australian dollars and unaudited (unless otherwise stated).
Highlights:
- Q1 FY24 unaudited revenue of $4.4m – marks a 91% increase on the prior corresponding period (‘PCP’)
- Results underpinned by Mernova Medicinal Inc., which delivered $1.6m in revenue during Q1 FY24
- Wholly-owned operating division Health House International generated $2.4m in revenue during the quarter – highlighting the Company’s ability to deliver growth through strategic M&A
- Non HHI European operations also contributed $380k in revenue, more than 30x Q1 FY23 revenues, highlighting a good uptick on these operations
- Board and management remain committed to ongoing efforts to further reduce operating expenditure
- Follows total FY23 record revenues of $21.6m – a 148% rise on the PCP
Financial performance:
During Q1 FY24, Melodiol delivered $4.4m in unaudited revenue, which was a 91% increase on the previous corresponding period (‘PCP’) (Q1 FY23: $2.3m). The results follow record group revenues of $21.6m in FY23 and highlight the Company’s ability to identify high growth opportunities and capitalise.
Q1 FY24 revenue was underpinned by Melodiol’s 100%-owned Canadian subsidiary, Mernova Medicinal Inc. (‘Mernova’) which generated $1.6m in revenue for the period. Pleasingly, Mernova’s revenue continued was up 6% on the PCP (Q1 FY2024 revenue: $1.5m).
Further, wholly-owned operating division Health House International (‘HHI’ or ‘HHI International’) also contributed $2.4m in revenue. HHI’s ongoing contribution to the Company’s revenue since its acquisition has further underpinned Melodiol’s stated strategy of leveraging strategic M&A to bolster operations.
Receipts from customers for the period totalled $5m, a 94% rise on the PCP. Net cash used in operating activities was also reduced by 50% from $2.2m in Q4 FY23 to $1.1m in Q1 FY24.
Cash used in operating activities comprised mainly of product manufacturing and operating costs ($3.2m), advertising and marketing ($0.1m), staff costs ($1.5m), and administration and corporate costs ($1.1m).
At quarter end, the Company has cash at bank if $0.6m. Payments to related parties and their associates as detailed in section six of the attached Appendix 4C relates entirely to Directors Fees / expenses of $0.1m.
Melodiol remains resolutely focused on continuing to reduce operating costs, while pursuing high growth revenue opportunities to push towards profitability. The Company also continues to take active steps to refocus its efforts and resources into higher performing business units, whilst exploring opportunities to undertake a strategic divestment or closures of non performing business units.
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