Elixinol’s Revenue Climbs 12.8% as Margins Reach 37% in H1 2025
Elixinol Wellness Limited reported a 12.8% increase in revenue to $7.6 million for the first half of 2025, driven by Healthy Chef and Hemp Foods Australia, alongside improved gross margins. However, integration expenses weighed on profitability, resulting in an adjusted EBITDA loss of $2.2 million.
- 12.8% revenue growth to $7.6 million in H1 2025
- Gross margin expanded to 37%, supported by e-commerce and Healthy Chef
- Operating expenses rose due to acquisition and facility closure
- Adjusted EBITDA loss widened to $2.2 million amid integration
- Cash outflows reduced; net cashflow neutral with $1.1 million closing cash
Revenue Growth Amid Strategic Integration
Elixinol Wellness Limited, a key player in the sustainable nutrition and wellness sector, has delivered a solid revenue increase of 12.8% year-on-year for the six months ending June 30, 2025. The company’s total revenue rose to $7.6 million, buoyed primarily by strong performances from its Healthy Chef brand and a rebound in Hemp Foods Australia. This growth underscores Elixinol’s ability to expand its market presence even while navigating the complexities of integrating recent acquisitions.
Margin Expansion and E-Commerce Momentum
Alongside top-line growth, Elixinol achieved a notable improvement in gross margins, which climbed to 37% from 35% in the previous corresponding period. This margin expansion was driven by Healthy Chef’s higher-margin product portfolio and a growing e-commerce channel, which now plays a more significant role in the company’s revenue mix. The second quarter saw margins stabilise at 38%, with procurement initiatives expected to further enhance profitability in the latter half of the year.
Integration Costs Impact Profitability
Despite these positive trends, Elixinol’s operating expenses increased substantially to $5.7 million, up from $4.1 million in H1 2024. This rise reflects costs associated with the Healthy Chef acquisition and the closure of the Ananda facility at the end of the first quarter. Consequently, the company reported an adjusted EBITDA loss of $2.2 million, wider than the $1.5 million loss recorded in the prior year. Management remains confident that ongoing cost rationalisation and synergy realisation will improve profitability in the second half of 2025.
Cash Flow and Balance Sheet Discipline
Elixinol demonstrated improved cash discipline, reducing operating cash outflows to $1.4 million from $2.1 million a year earlier. Net cashflow was effectively neutral, supported by financing inflows that offset operating outflows, leaving the company with $1.1 million in closing cash. The balance sheet showed net assets of $7.0 million, down from $10.0 million at the end of 2024, reflecting a deliberate focus on working capital reduction as part of the integration strategy.
Looking Ahead
Elixinol’s strategic focus remains on driving top-line growth through its diversified portfolio, particularly leveraging e-commerce and the Healthy Chef brand. While integration costs have weighed on near-term profitability, the company is actively pursuing cost optimisation and operational efficiencies. Investors will be watching closely for signs of margin improvement and EBITDA turnaround in the second half of 2025 as these initiatives take effect.
Bottom Line?
Elixinol’s H1 results set the stage for a critical second half where integration success will be key to unlocking profitability.
Questions in the middle?
- How quickly will cost rationalisation translate into positive EBITDA?
- What is the outlook for Elixinol America’s revenue and margin trajectory?
- Can e-commerce growth sustain margin expansion amid competitive pressures?
