Althea Group Holdings reports a significant reduction in losses for FY25, driven by asset sales and strategic refocus on North American THC beverages. The company completed a $4 million capital raise and navigated leadership changes amid subsidiary liquidations.
- Loss after tax narrowed 74% to $8.35 million
- Revenue from continuing operations rose to $15.56 million
- Sale and wind-up of UK and Australian medicinal cannabis businesses
- Secured $4 million funding via share and loan note placements
- Focus sharpened on North American THC beverage joint venture
Financial Turnaround Amid Strategic Divestments
Althea Group Holdings Limited has reported a markedly improved financial performance for the year ended 30 June 2025, with its loss after tax shrinking by 74% to $8.35 million from $32.06 million the prior year. This improvement was underpinned by a 23% increase in revenue from continuing operations to $15.56 million, reflecting a more streamlined business model following significant asset sales.
The company’s results were heavily influenced by the classification of its UK and Australian medicinal cannabis distribution businesses as discontinued operations. The sale of MyAccess Clinics assets in the UK and Ireland, completed in October 2024, and the divestment of Althea Company Pty Ltd assets in Australia, finalized in May 2025, marked a decisive exit from these markets. These moves have allowed Althea to reduce ongoing losses and focus resources on its core growth areas.
Capital Raising and Operational Focus
During the year, Althea successfully raised $4 million AUD through a combination of share placements and loan notes, with shares issued at 2 cents each. This capital injection was critical in supporting the company’s transition and funding its ongoing operations, particularly in North America. The loan notes issued may convert into ordinary shares subject to shareholder approval, a factor that investors will watch closely for potential dilution effects.
Strategically, Althea has pivoted towards the North American THC beverage market, leveraging its wholly owned subsidiary Peak USA Inc. and a 50 – 50 joint venture with Flora Growth Corporation, Peak USA JV LLC. The joint venture has commenced production runs in Florida, targeting a niche in THC-infused beverages, and secured a multi-year manufacturing agreement with The Boston Beer Company, a notable player in the US beverage industry. This partnership signals Althea’s intent to capitalize on the growing cannabis-infused product segment in the US.
Leadership Changes and Corporate Governance
The company underwent significant leadership changes during the year. Chairman Andrew Newbold resigned in August 2024, succeeded by Vaughan Webber, while CEO and Managing Director Joshua Fegan stepped down in July 2025, with Barry Katzman appointed as interim CEO. These changes reflect a period of corporate restructuring aimed at stabilizing the company and steering it through its strategic refocus.
Additionally, Althea’s subsidiaries in the UK entered liquidation, and the Australian subsidiary entered voluntary administration with a Deed of Company Arrangement (DOCA) executed. While these developments introduce some uncertainty, the parent company has indicated that these arrangements are not expected to materially impact its ongoing operations or financial position.
Balance Sheet and Outlook
Althea’s balance sheet shows net tangible liabilities of 33 cents per share, an improvement from 66 cents the previous year, reflecting the impact of asset disposals and capital raises. The company’s EBITDA loss from continuing operations narrowed to $2.34 million, and adjusted EBITDA loss after excluding non-recurring items improved to $1.69 million, signaling a leaner cost structure.
Despite the progress, the company remains in a loss-making position and faces challenges related to subsidiary wind-ups and the successful scaling of its North American operations. The upcoming period will be critical in demonstrating the viability of its THC beverage strategy and the ability to generate sustainable profits.
Bottom Line?
Althea’s FY25 results mark a turning point, but the path to profitability hinges on execution in the US THC beverage market and managing legacy subsidiary closures.
Questions in the middle?
- How will the potential conversion of loan notes into shares affect shareholder dilution?
- What are the growth prospects and timelines for Peak USA JV LLC’s THC beverage products?
- What financial impact will the DOCA and liquidation of subsidiaries have on Althea’s cash flow and risk profile?