Over the last fiscal year, Montu has continued its growth trajectory with preliminary FY2023 revenues of $98m, representing an increase of close to 480% compared to last year. Despite the significant growth and investments into future scalability, we recorded a preliminary FY2023 profit margin (before tax) of 7%, compared to a breakeven result in FY2022. Our view is that profit margins will grow in line with increasing economies of scale throughout the business. Having said that, we will continue to utilise available profits wherever growth opportunities arise with a view to maximise market share and scale for the business. Next to the clinic offering, our product portfolio is expanding rapidly. With our Circle, Sundaze, Upstate, and Greena brands well established in market and growing, we are able to better than ever service the needs of patients and doctors. Our ability to source high quality products at competitive pricing and having the data to back up dedicated large investments serves as a key competitive advantage. Similarly, an increasing number of partner brands in combination with our robust and reliable logistic infrastructure, enabled us to swiftly grow the Leafio B2B business. Our focus on superior service and efficient distribution led us to work with some of the leading pharmacies in the Australian medical cannabis market. Despite our stellar performance and strong track record, we foresee ongoing challenges to remain, such as increasing competition, commoditisation of parts of the value chain, margin pressure, regulatory uncertainty and other growing pains internally and across the industry. In FY2024, we will continue to focus on positioning the business for success in an increasingly competitive landscape. HELD.
IHL Price at posting:
6.0¢ Sentiment: None Disclosure: Held
