Ann: FY2017 Results ASX Announcement, page-23

EXL appears to be a real sleeper and also because it has 3 distinct divisions it can often be a little harder to understand...
The real gem and cashflow generator in this company is the CBD products they sell through their Elixinol brand in the US and into 22 other countries. The beauty of these products is that they are high value ($39 upto $249) high margin (64% as of last report) and mostly direct to consumer through their website so the company is keeping most of the margin. A lot of people have not heard of CBD.
What is CBD Oil?
CBD hemp oil is made from high-CBD, low-THC hemp, unlike medical marijuana products, which are usually made from plants with high concentrations of psychoactive tetrahydrocannabinol (THC). Because hemp contains only trace amounts of THC, these hemp oil products are non-psychoactive.

This more established part of the business for Elixinol grew year in year at 86% to revenue of $13.6m.
This on its own is a remarakable business and these products are now starting to proliferate and gain the attention of larger pharmaceutical companies that want a piece of the action.

The other stream of the business is Hemp foods Australia which is the number one brand in Australia and is exported to 4 different Asian countries. Having only been legal in Australia since November 2017 it is not clear yet in the results how big this market is and also how big it is going to become. But to give you an idea of the pent up demand, they were selling $3m a year before it was even legal, so there were a lot of people buying it when the products were sold as a body scrub or even labelled “not for human consumption” just to comply with the law..
This market is huge and if you go into any health food store right now, just ask them how fast the hemp food products are growing, The good food guide said it was the number 1 trend of 2018..From me talking to health stores the market is growing 30% month on month. These are significant numbers and you will see a lot of stores starting to range the products as we go forward.
The company also sells a lot of product direct to consumers through their website..hempfoodsaustralia.com.au
The benefits of hemp compared to a lot of the other protein powders out their is becoming apparent and a lot of people are looking to get their protein from a plant based product as opposed to meat based. The trend is accelerating and you just need to google hemp to see the benefits from a health as well as environmental point of view..
So the company has 2 well established brands with accelerating sales profiles and in addition are applying for a medical marijuana licence here in Australia. I believe the plans are much greater than just producing product for the domestic market and there is a bigger game plan that has not been revealed. the CEO Paul Benhaim is far too canny to just focus on the Australian market and has global ambitions, so there are a lot more developments in this side still to be revealed.
EXL is the best way to get exposure to the Hemp and CBD growth story globally and as the message gets out there people will see that it is a very tightly held stock (top 20 over over 90%) and will run.
The good thing is the company has under promised and over delivered in its first set of results. Long may it continue.
Good luck