Bioxyne Surges to $4.9M Profit on Medicinal Cannabis Boom

A Breakthrough Year for Bioxyne

Bioxyne Limited (ASX – BXN) has delivered a striking turnaround in its financial performance for the year ended 30 June 2025. The company reported revenue of $29.6 million, a 217% increase over the prior year, driven primarily by medicinal cannabis sales in Australia following the launch of in-house manufacturing operations in August 2024. This surge translated into the company’s first significant profit of $4.9 million, a remarkable shift from a loss exceeding $13 million the previous year.

Positive operating cash flow was sustained throughout the year, totaling $6.3 million, reflecting improved operational efficiency and strong demand. Bioxyne also invested $2.4 million in plant and machinery to scale manufacturing capacity, positioning itself to meet rapidly growing market needs.

Strategic Growth and Market Expansion

Key to Bioxyne’s success was the signing of several major supply contracts, including a €3.2 million (A$5.8 million) agreement with Germany’s Farmakem d.o.o. and Adrex Pharmaceuticals GmbH, set to commence in FY2026. The company also secured Good Manufacturing Practice (GMP) compliance certificates under Mutual Recognition Agreements for Europe, Canada, Singapore, and the UK, enhancing its credibility and market access.

While overseas markets in the UK, Europe, and Japan underperformed due to regulatory changes, Bioxyne anticipates a substantial rebound in FY2026. The company has begun groundwork to establish GMP-certified medicinal cannabis manufacturing operations in the UK and Czechia, signaling a strategic push into key international markets.

Financial Position and Capital Management

Shareholder equity rose sharply to $11.4 million from $3.3 million, bolstered by the improved profit and a successful $3 million capital raise through the issuance of 120 million shares at $0.025 each, accompanied by 60 million free attaching options. The group’s cash balance at year-end stood at $7.7 million, up from just over $1 million, providing a solid liquidity buffer for ongoing expansion.

Despite the profitability, the company did not reverse the $11.6 million goodwill impairment recorded in the prior year, reflecting a cautious approach to asset valuation. No dividends were declared or proposed, consistent with the company’s focus on reinvestment and growth.

Diverse Business Segments and Future Outlook

Bioxyne operates across three core segments – pharmaceutical manufacture and wholesale supply of novel medicines including medicinal cannabis and psychedelics; consumer health and novel food products under the Dr Watson® brand in the UK, Europe, and Japan; and wholesale probiotics primarily to the USA. The company aims to solidify its position as Australia’s leading medicinal cannabis manufacturer and expand its footprint in Europe and the UK through new manufacturing facilities.

Looking ahead, Bioxyne’s management is optimistic about capitalizing on high-growth health and wellness markets, with plans to broaden its customer base and leverage regulatory certifications to accelerate international sales. The company’s strategic investments and contract wins set a promising stage for FY2026.