Elixinol Wellness has lifted combined hemp sales 12% to $6.41 million in the first nine months of 2026, while unaudited gross profit rose 41%. Two major grocery programs are now fully supplied through 2027, with Hemp Gold Protein due back at Costco in Australia and New Zealand.
- Combined branded and bulk hemp sales of $6.41 million for nine months to 30 September 2026
- Sales increased 12% and unaudited gross profit rose 41% year on year
- Full supply of two major grocery programs secured through trade partners into 2027
- Hemp Gold Protein expected to return to Costco in Australia and New Zealand in October or November
- Hemp Foods Australia products remain ranged by Coles and Costco
Hemp sales growth outpaces revenue increase
Elixinol Wellness Limited (ASX:EXL) has posted a sharper improvement in gross profit than sales, with combined Hemp Foods Australia branded and Australian Primary Hemp bulk sales reaching $6.41 million for the nine months to 30 September 2026. Sales rose 12% on the prior corresponding period, while unaudited gross profit increased 41%.
The company attributed the margin improvement to greater economies of scale, sourcing and processing efficiency after a period of constrained margins. The announcement does not provide a gross margin percentage or a breakdown between branded and bulk sales, so the extent to which the improvement can be sustained remains untested.
Two grocery programs extend into 2027
Elixinol now says it supplies two major grocery programs in full through trade partners, rather than supplying one in full and sharing the other during 2025. Both programs are continuing into 2027, giving the hemp operation a longer order runway and a larger base over which to spread processing activity.
The update adds to a sequence of margin-focused announcements from the company, including its record quarterly margin gains reported in August. Today’s filing is specific to the hemp business and provides nine-month sales and gross profit figures, but does not state the value or terms of the grocery arrangements.
Costco return creates a branded sales catalyst
Hemp Gold Protein is expected to return to Costco stores in Australia and New Zealand in October or November 2026. The product is also sold through Coles, health retailers and online marketplaces, while Coles moved to a larger 450-gram format in May.
Hemp Foods Australia’s seeds remain ranged by Coles and Costco. The company also points to FODMAP Friendly certification for selected products, including organic hulled seeds and Gold Protein, now in its second year. That certification is presented as a point of differentiation for consumers with dietary sensitivities, rather than as evidence of additional sales on its own.
Margin durability becomes the next test
Elixinol says its supply team’s experience in growing, sourcing and processing has supported consistent supply and improved output as grocery volumes expanded. The figures are unaudited, however, and the announcement offers no earnings guidance or detailed explanation of how much of the 41% gross profit increase came from pricing, product mix, volume or cost efficiencies.
For shareholders, the near-term markers are concrete: confirmation that Gold Protein has returned to Costco, evidence that the two grocery programs continue through 2027, and whether the improved gross profit rate survives as the business scales beyond the current nine-month period.
Bottom Line?
The hemp business is showing encouraging operating leverage, but audited results and the next quarterly update will need to establish whether the 41% gross profit growth is repeatable.
Questions in the middle?
- Will the return of Hemp Gold Protein to Costco translate into a material lift in branded sales during the December quarter?
- How much of the 41% gross profit increase reflects lasting efficiency gains rather than product mix or timing?
- What revenue and margin contribution will the two grocery programs make as their supply arrangements continue through 2027?