Elixinol Wellness Limited

Elixinol reported Q4 revenue of $4.1 million, up 9.5% quarter-on-quarter, and FY25 revenue of $15.5 million, up 3.6% year-on-year. Management said gross margins improved thanks to a better mix of higher-margin products and channels, and Healthy Chef e-commerce sales grew 42% year-on-year in Q4. The company said Q4 EBITDA was slightly better than breakeven, operating costs were down approximately 30% versus Q4 '24, and underlying operating cash flow was positive. For FY26, management pointed to continued margin improvement, a structurally lower OpEx run rate, and strategic optionality around M&A; no specific full-year numeric guidance was given.

Natalie Butler emphasized that Elixinol has been deliberately reset for profitable growth, with capital being directed toward the highest-return parts of the portfolio. She highlighted consumer trends supporting wellness, food-led wellness, clean-label demand, and diversified grocery plus e-commerce channels as the basis for the company’s strategy. Her tone was confident but measured, with a focus on innovation-led growth in Healthy Chef, hemp, and Mt Elephant rather than broad-based expansion.

Adam Dimitropoulos focused on the improvement in revenue quality and the shift away from lower-margin bulk ingredients. He said e-commerce increased from 21% of revenue in 2024 to 38% in 2025, while bulk ingredients fell from 24% to 14%, and noted that Q4 operating costs were down about 30% year on year. He also said the company completed a two-tranche capital raise totaling $2.5 million in the second half, strengthening the balance sheet and supporting both organic growth and selective M&A.

In Q&A, investors asked about supermarket relationships and whether niche brands can succeed at the majors; management said supermarkets are tough but still open to real innovation, and that Elixinol’s smaller, nimble structure helps it respond quickly. They also addressed growth ambitions and said the immediate priority is a market re-rating, noting the company trades at around 0.3x revenue versus peers at 1 to 1.5x revenue, while they look for value-accretive assets to build a premium branded health food platform. On the U.S. CBD business and loan notes, management said the regulatory framework has shifted, clarity may emerge in 2 to 3 months, and they are keeping the business running for contribution while staying open to prospective buyers.