Greenfern Industries Limited Analysis

Overview

Greenfern is a New Zealand based cannabis, therapeutics and wellness company which was incorporated in 2018. The Company’s primary focus to date has been on research, harvesting and selling its hemp crops for industrial use and as ingredients for foods used in the fast-moving goods market, and establishing commercial relationships with local and overseas parties, as well as preparing to seek approvals and licenses to produce and distribute medicinal cannabis products.

Performance

The following information has been extracted from Greenfern Industries Limited's full year results, released 30 May 2024

Financial Performance:

Despite the ongoing uncertainty in the global economic landscape, I am pleased to report that Greenfern Industries NZ has maintained its resilience and achieved progress in a number of areas during the period.

Our financial performance remained in line for an industry startup and generally in line with our original expectations. We have seen revenue growth commencing in our core cultivation business. We have sold a number of harvest batches post reporting date and continue to see solid demand for our premium, wholly indoor grown medicinal cannabis flower into the coming financial year and beyond.

In contrast our Australian partnership with Cannvalate has continued to wind down to the point that continued revenue from this relationship is unlikely. While our agreement with Cannvalate remains in place, they have continued to pivot in business model from a prescriber, doctor, and patient acquisition business to a Contract Research Organisation (CRO) in the medicinal cannabis and psychedelic research space, In addition the Australian company that manufactured our GFI Pharma branded medicines entered into administration prior to Christmas 2023. While we have been working to explore and secure alternative relationships within the Australian market, this has not yet been successful and has meant we have had to reign back and re-evaluate our position and focus in this area. However, Australia and the Australian market remain a key focus for growth of our business moving forward.

Accordingly, GFI's financial results in the past year declined, with a revenue of $0.3M, representing a decrease of 40% over the previous year. Our net loss after tax was $1.5 million, a 23% decrease compared to last year’s net loss of $2 million which was an improvement and heading towards our breakeven goal in FY25 and profitability in FY26.

Generally prudent financial management and strategic decision making have not only sustained our operations in a difficult economic environment but also strengthened our future position. As we continue to successfully cultivate, harvest and sell medicinal cannabis harvests from our new facility to both local and international markets, we expect consistent growth and increased revenues in the next financial year as our business model normalises.