nal use only

1H22 Results

Eric Wang, CEO

Jonathan Brown, CFO

24 February 2022

1

Disclaimer

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nal use only

Agenda

1H22 results

Item

Presenter

Overview

Eric Wang

Result

Jonathan Brown

Strategy

Eric Wang

Outlook

Eric Wang

3

Hemp Black solid client pipeline at different stages of development across multiple segments
Ananda Health clinical research progressing well and growth in ecommerce
Ananda Food expands client base via position as lowest cost / highest quality producer of 100% Australian hemp food
continued growth in Hemp Black & Ananda Food revenue
core independent pharmacy channel flat on last half, lower vs pcp

1H22 overview

Losses increased as challenging environment impacts margins. Continuing to invest behind high conviction in our portfolio

  • Revenue growth of 5% despite difficult US CBD market

!

!

• Continued tight management of operating costs in the face of significant inflation across wages and supply chain disruption

• Margins impacted in 1H22

only•

full period impact of CBD price reduction implemented at end of 1H21

•

CBD inventory provision from over production 2 years ago. Current

use

production levels balanced with sales demand

polymer price increases in Hemp Black. Pricing being renegotiated

•

• High conviction in commercial opportunity across the portfolio supports continued investment

!

!

nal!

Revenue

up from

$14.7m to

$15.5m

Capital

investment

$1.5m

Cash ($5.9m)

+$6.6m grants

$12.5m

NPAT

down from

$-5.5m to

-$6.7m

R&D

investment

$2.9m

EPS (diluted)

-2.03cps

4

1H22 overview

Business portfolio result

Revenue Gross margin

onlyOther Income Operating Expenses I terest Expense

PBT Income Tax

NPAT

Investments

R&D (included in opex) useCapex

nal

1H22 1H21

6.6 7.5

  1. 5.7
  1. -

(8.4)

(8.0)

-

-

(4.0)

(2.3))

1.60.7

  • 0.10.3

  • Pharmacy segment revenues stabilised
  • Lower revenue in non- professional channels.
  • Margins reflect price reduction and $0.6m in provisions
  • Opex increase driven by marketing as sales conferences re-open

1H22 1H21

6.8 6.0

  1. 3.8
  1. -

(5.5)

(4.2)

-

-

(1.3)

(0.4))

    1. 0.1
    2. 0.9
  • Solid underlying growth. Full period for acquisition (+$1.6m) offset by one- off mask revenue (-$1.9m)
  • Margins impacted by higher in polymer costs
  • Opex includes annualised acquisition (+$1.0m) and client development costs

1H22

1H21

1H22

1H21

2.1

1.2

-

-

0.6

-

-

-

-

0.1

0.2

(0.2)

(1.1)

(1.0)

(3.4)

(3.3)

-

-

(0.6)

(0.5)

(0.4)

(0.9)

(3.9)

(4.0)

2.9

2.0

(1.0)

(2.0)

-

-

-

0.3

-

-

-

3.0

• Steady growth in food

•

Other income includes

and $0.6m in seasonal

FX movement

planting seed sales

•

Corporate operating

• Margins up from -3% to

costs flat

31% as a result of

reduced seed costs, scale benefits and higher margin seed sales

  • Operating costs flat

5

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Ecofibre Ltd. published this content on 23 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 February 2022 21:58:20 UTC.