Elixinol Reports 71% Jump in Q4 Cash Receipts, Edges Toward EBITDA Break-even

Strong Q4 Performance Amid Strategic Growth

Elixinol Wellness Limited (ASX: EXL) has reported a robust finish to FY24, posting record quarterly revenue and cash receipts that underscore the success of its recent strategic acquisitions and operational improvements. The company’s Q4 cash receipts surged 71% year-on-year to $4.4 million, while quarterly revenue climbed 64% to $4.3 million, marking the best quarter in four years.

This growth was fuelled by a combination of organic momentum and the integration of acquisitions, notably The Healthy Chef brand, which added $668,000 to Q4 revenue. This acquisition has not only bolstered Elixinol’s direct-to-consumer e-commerce strategy but also opened new avenues for scaling in both Australia and the United States in 2025.

FY24 Revenue and Margin Expansion

For the full fiscal year, Elixinol reported unaudited revenue of $15 million, exceeding FY23 by $6.5 million. When including full-year contributions from FY24 acquisitions, proforma revenue reached $17.7 million, slightly below the company’s $16 million to $20 million target but still a significant achievement given challenging market conditions.

Importantly, the company achieved margin expansion, with group gross margins rising to 40% from 38% a year earlier. Australian portfolio margins improved from 34% in Q3 to 37% in Q4, reflecting enhanced operational efficiencies and the positive impact of higher-margin products like Healthy Chef.

Operational Efficiency and Cash Position

Elixinol’s operational discipline is evident in its cost management, with operating costs (excluding marketing) falling as a percentage of revenue. The company reported a positive EBITDA contribution from both Healthy Chef and Elixinol USA in Q4 and across FY24, edging closer to EBITDA break-even by the end of the quarter.

Financially, Elixinol strengthened its cash position with $1.3 million in available cash and short-term funding. Excluding one-off acquisition and restructuring costs, the company’s cash runway extends beyond five quarters, providing a solid foundation for continued growth and investment.

Channel and Brand Highlights

E-commerce revenue accelerated dramatically, surging 246% compared with Q3 FY24 and 333% year-on-year, driven largely by The Healthy Chef and other consumer brands. This shift reduces reliance on grocery channels and aligns with Elixinol’s direct-to-consumer growth strategy.

Distributor channels and grocery sales also showed strong growth, with Hemp Foods Australia leading the charge. The company’s flagship brand expanded its footprint with new seed mix SKUs launched in Coles, and Costco achieved record hemp seed sales in Q4.

Looking Ahead: Strategic Imperatives for FY25

Elixinol’s FY25 strategy focuses on driving growth through new product development in ready-to-eat health segments and supplements, accelerating Healthy Chef’s expansion, and optimising margins across its portfolio. The company also plans to revitalise its U.S. market presence with targeted marketing efforts.

Operational efficiencies and integration synergies from recent acquisitions are expected to further enhance profitability, positioning Elixinol Wellness for sustained growth in the competitive health and wellness sector.