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Creso delivers robust year-on-year revenue growth
4 minute read
Shares in Creso Pharma Limited (ASX:CPH, FRA:1X8) soared 20% on Friday after the company released its quarterly report for the three months to 31 December, 2019.
Momentum has been building since early December as the company outlined its strategy for generating substantial growth in 2020.
This has triggered a share price increase of 50% since early December.
The quarterly report featured strong revenue growth, as well as highlighting promising operational developments within the group.
Unaudited consolidated group revenues grew very strongly in the December quarter, reaching nearly $2 million, and bringing full year revenues to $3.6 million for 2019.
Year-on-year revenue boosted by Creso Pharma’s European nutraceutical and animal health product sales during the December quarter was nearly $1.6 million.
Equivalent unaudited revenues from nutraceutical and animal health product sales for the full year 2019 were nearly $2.8 million, up from about $550,000 for the full year 2018.
cannaQIX® 50 launched in Australia
Creso Pharma also made substantial ground on the operational front with its broad range of products.
The company delivered its first orders of medicinal 10% CBD oil in New Zealand.
There was also good news in relation to the group’s flagship medical cannabis product cannaQIX® 50 with sales commencing in Australia and the launch of the cannaQIX® range in South Africa anticipated in April 2020.
The company has partnered with leading South African pharmaceutical company Pharma Dynamics in South Africa, and it has placed two initial orders for cannaQIX® Regular, totalling approximately AU$300,000.
The partnership will also pursue commercialisation of Creso Pharma’s products in other African countries, including Angola, Botswana, Lesotho, Namibia, Mozambique, Swaziland, Uganda and Zimbabwe.
Mernova ramping up to full production
The 24,000 square foot world-class, revenue generating Mernova Cultivation Facility is in the advanced stages of securing European Union GMP certification, which will allow the export of its GMP medicinal cannabis products to Europe.
Upon receiving this certification, Mernova will be one of few Canadian companies with a licence to export to the EU.
Mernova’s unaudited revenues for the full year 2019 were $877,000 in its first year of production.
The facility commenced production midway through 2019 and has been scaling up. The facility is not yet at full production capacity, which is anticipated to occur during 2020.
The granting of a licence in February to cultivate at Creso Pharma’s “Mernova Medical” facility in Nova Scotia made Creso the only ASX listed company that has 100% ownership of a Canadian licensed producer.
Creso Pharma currently has a portfolio of 13 products which have been developed with standardised dosing and formulations through the application of pharmaceutical rigour, GMP standards and innovative delivery technologies.
Of the 13, four have been commercialised, with nine pending commercialisation.
During the December quarter, Creso Pharma continued the protection of its sustainable competitive advantage with the conclusion of the international phase of the PCT and the commencement of national filing in all European countries, Australia, New Zealand, South Africa and selected North and South American countries for both the human health and the animal health delivery systems.
The company is well-positioned to fund its growth initiatives in 2020 with $2.8 million in cash as at 31 December, 2019.
Management also noted that the company has undrawn debt facilities of $4.2 million.
Commenting on Creso Pharma’s outlook, chief executive and co-founder Dr Miri Halperin Wernli, said, ‘’Creso Pharma has an expanding portfolio of innovative products and a leadership team with vast experience in the pharmaceutical industry.
"The company’s products are now sold across Europe and Oceania, and will soon be available in South Africa.
‘’We are confident in our ability to successfully commercialise our new and existing products, and we look forward to updating shareholders on our continuing progress and growth.”