Little Green Pharma reported a robust June 2025 quarter with record cash receipts and expanding European footprint, highlighted by a new production capacity in Denmark and the launch of its CherryCo brand in Germany.
- Record cash receipts of $12 million, up nearly 50% year-on-year
- Revenue of $9.1 million, a 20% increase compared to prior corresponding period
- 70% surge in Danish facility sales into Germany amid record German cannabis imports
- Commissioning of new 2.4 tonnes per annum production room in Denmark, expanding total capacity to 8.5 tpa
- Launch of CherryCo brand in Germany as a high-value, low-cost flower offering
Strong Financial Performance Amidst Market Dynamics
Little Green Pharma (ASX – LGP) closed the June 2025 quarter with encouraging financial results, reporting $9.1 million in revenue; up over 20% compared to the same period last year; and record cash receipts of $12 million, a near 50% increase year-on-year. Operating cash flow turned positive at $0.5 million, reversing a prior quarter outflow, signaling improved operational efficiency despite some short-term regulatory and delivery timing challenges.
The company’s full year FY25 audited financials revealed a 52% compound annual growth rate in revenue since FY22, culminating in $36.8 million total revenue, adjusted EBITDA of $2.9 million, and a net profit after tax of $3.3 million. These figures underscore Little Green Pharma’s steady progression in the competitive medicinal cannabis sector.
European Expansion and Capacity Growth
European sales continue to be a key growth driver, with a notable 70% increase in sales from Little Green Pharma’s Danish facility into Germany. This surge aligns with a record 37.2 tonnes of cannabis imported into Germany in the first quarter of calendar year 2025, reflecting the rapid expansion of the German medicinal cannabis market following its partial legalization in mid-2024.
To support this demand, Little Green Pharma commissioned a new 2.4 tonnes per annum production room at its Danish facility, increasing total capacity to 8.5 tonnes per annum, with another 2.4 tpa room currently being fitted out. This positions the Danish site as the largest medicinal cannabis production facility in Europe and a strategic hub for serving Germany, the UK, and broader European markets.
Strategic Brand Launch and Market Positioning
In a significant commercial development, Little Green Pharma launched its first branded products in Germany under the CherryCo line. Positioned as a high-value, low-cost flower offering, CherryCo aims to capture the growing German patient base and compete effectively in a market experiencing increased imports and evolving regulatory frameworks.
While European operations gained momentum, the Australian market presented mixed results. Budget flower sales declined by 35% due to heightened competition, though this was partially offset by a 10% increase in oil sales and a 5% rise in vaporiser sales. Regulatory delays affected shipments, including a $0.5 million Australian flower shipment to Germany, highlighting ongoing challenges in cross-border logistics.
Financial Position and Outlook
Little Green Pharma ended the quarter with $2.5 million in cash and over $5 million in unused financing facilities, maintaining a strong balance sheet with minimal long-term debt of $3 million. The company’s net tangible assets significantly exceed its enterprise value, suggesting undervaluation relative to its asset base and growth potential.
Looking ahead, new Danish legislation effective January 2026 will enable the facility to act as a cannabis import, packing, and distribution hub, further enhancing its strategic role in Europe. Meanwhile, the company plans to launch three new oil products under its Indicare brand in the current quarter, aiming to diversify and strengthen its product portfolio.
Bottom Line?
With European markets accelerating and strategic capacity expansions underway, Little Green Pharma is poised for scalable growth, though competitive pressures and regulatory complexities remain key watchpoints.
Questions in the middle?
- How will Little Green Pharma navigate increasing competition in the Australian budget flower segment?
- What impact will the new Danish cannabis import and distribution laws have on LGP’s European supply chain efficiency?
- Can the CherryCo brand gain significant market share in Germany’s rapidly evolving medicinal cannabis market?