Healthy Chef Acquisition Drives Elixinol’s 12.8% Revenue Growth in H1 2025
Elixinol Wellness Limited reported a 12.8% revenue increase in the first half of 2025, driven by strategic acquisitions and a growing e-commerce presence, while targeting profitability by the end of the year.
- 12.8% revenue growth to $7.6 million in H1 2025
- Gross margin improved to 37%, aided by e-commerce expansion
- Adjusted EBITDA loss widened to –$2.2 million due to integration costs
- Healthy Chef acquisition and e-commerce growth key revenue drivers
- Profitability targeted for Q4 2025 with operational efficiencies
Revenue Growth Amid Strategic Shifts
Elixinol Wellness Limited has posted a solid 12.8% increase in revenue for the first half of 2025, reaching $7.6 million. This growth was largely propelled by the acquisition of Healthy Chef and a strategic pivot towards e-commerce, which now accounts for 38% of sales, up from 21% the previous year. The company’s Australian segment led the charge with a $1 million revenue boost, while the Americas segment experienced a slight softening as it transitions to a more digitally focused sales model.
Margin Improvements and Cost Pressures
Gross margins improved to 37% from 35% in the prior corresponding period, supported by a higher mix of e-commerce sales which typically command better margins. However, the company faced cost pressures from ingredient price increases, particularly hemp grain and chocolate, which it expects to have resolved in the second half of the year. Procurement improvements and operational rationalisation are anticipated to further enhance margins moving forward.
Integration Costs Weigh on Profitability
Despite revenue growth, Elixinol’s adjusted EBITDA loss widened to –$2.2 million, compared to –$1.5 million in the first half of 2024. This was primarily due to increased operating expenses linked to the integration of Healthy Chef and the closure of the Ananda NSW facility. The company is actively pursuing cost rationalisation and expects these integration costs to taper off in the second half, paving the way for improved profitability.
Working Capital and Cash Flow Discipline
Elixinol has made notable progress in working capital management, reducing inventory levels and improving receivables collections, which contributed to a better cash conversion cycle. While borrowings increased to $2.5 million following debt funding, the company maintained a neutral net cash flow position in H1 2025. Closing cash stood at $1.1 million, underscoring a focus on cash discipline as it navigates through its operational transition.
Looking Ahead, Profitability and Growth
Looking forward, Elixinol aims to complete business simplification and right-sizing initiatives in the second half of 2025. The company plans to leverage innovative product launches, including Healthy Chef’s protein waters and GLP-1 offerings, to reignite retail growth and further boost e-commerce momentum. With a refreshed US brand and digital strategy underway, Elixinol is targeting profitability by Q4 2025 and a sustainable EBITDA run-rate into 2026.
Bottom Line?
Elixinol’s H1 momentum sets the stage for a critical second half focused on operational efficiency and profitability.
Questions in the middle?
- How quickly will cost rationalisation and integration benefits translate into positive EBITDA?
- What impact will the refreshed US brand and digital strategy have on Americas segment growth?
- Can Elixinol sustain and expand its e-commerce growth amid competitive pressures?
