Elixinol Wellness Limited

Elixinol reported Q4 FY25 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 due to higher-margin products and channels, Healthy Chef e-commerce sales grew 42% year-on-year in Q4, and Q4 EBITDA was slightly better than breakeven. Operating cost base in Q4 FY25 was reduced by approximately 30% versus Q4 FY24, and the company delivered positive underlying operating cash flow for the quarter. The company also completed a two-tranche capital raise totaling $2.5 million in the second half. For FY26, management said the outlook is anchored on operational momentum, cost efficiency, building a growth foundation, and strategic opportunities, with continued focus on stronger margins and disciplined M&A.

Natalie Butler framed FY26 as a year to convert wellness-market tailwinds into revenue growth while keeping capital discipline tight. She emphasized the company’s focus on higher-return areas such as Healthy Chef e-commerce, a rollout of the Elixinol U.S. brand refresh, and innovation in retail where products must ‘earn that shelf space.’ Her tone was constructive and selective: grow where returns are strongest, keep costs controlled, and use the company’s diversified portfolio and vertical integration as a platform for sustainable growth.

Adam Dimitropoulos focused on the improvement in revenue quality and the reset in the cost base. He said revenue was $4.1 million in Q4, $15.5 million for FY25, e-commerce rose to 38% of revenue from 21% the prior year, and lower-margin bulk ingredients fell to 14% from 24%. He also pointed to about a 30% reduction in the Q4 operating cost base versus Q4 FY24, positive underlying operating cash flow in the quarter, and the $2.5 million two-tranche capital raise, arguing that the business now has a leaner, more resilient financial structure.

In Q&A, investors asked about supermarket pressures, the company’s growth strategy, and the U.S. business/loan notes. Management said supermarkets are ‘tough right now’ and especially challenging for niche brands like Mt Elephant, but buyers are still open to genuine innovation; they also said e-commerce and hemp supply-chain positioning help offset retail range rationalization. On M&A, Gavin Evans said the first priority is a market re-rating tied to improved operating performance, noting FY25 revenue of roughly $16 million versus a market-cap-to-revenue multiple around 0.3x compared with listed peers at 1 to 1.5x. On the U.S. CBD business, he said the regulatory framework shifted late last year, more clarity may emerge in 2 to 3 months, and the company will keep running the business while staying open to buyers if the situation clears.