- Elixinol Global (EXL) said it's on track to post a 10 to 15 per cent growth in revenue in the September quarter
- The increase comes despite the effects COVID-19 is having on the business, forcing Elixinol to reduce its cost base by 45 per cent
- The company has also managed to expand its Wells Pharmacy partnership to eight products across over 500 U.K. stores
- It also conducted a review of its Australian Hemp Foods business and decided to retain the brand
- Following today's quarterly update, shares closed up 3.33 per cent at 15.5 cents each
Health and wellness company Elixinol Global (EXL) is on track to post a 10 to 15 per cent growth in revenue over the September quarter.
The forecast revenue growth comes despite the effects the COVID-19 pandemic is having on the business.
Elixinol has had to reduce its cost base by 45 per cent to withstand the challenging trading conditions.
Despite the reduction, all regions of the business reported growth over Q3 after the business changed leadership.
New CEO Oliver Horn was only recently appointed to the role, and the September quarter was his first full quarter with the company.
"We are delighted to be seeing very encouraging results across all our key reporting metrics and through each business unit as a result of the decisive repositioning efforts implemented through H1 FY20," he said.
"Our strategy to focus on Elixinol branded consumer goods and higher-margin consumer channels, such as eCommerce, is translating to revenue growth and margin improvement," he added.
Pleasingly, the September quarter also marked an expansion of the company's partnership with U.K. pharmacy chain Wells Pharmacy.
Elixinol initially launched five of their CBD cosmetic products within the pharmacy's stores in August.
It now plans to launch an additional three products and expand its distribution to over 512 Well's stores across the U.K.
The company also signed an agreement with Boots Pharmacy to sell its eight cosmetic products throughout its 74 stores in Ireland.
Finally, Elixinol recently conducted a review of its Hemp Foods Australia business and decided to keep the company in its portfolio after it recorded improvements in its performance margins across Q3.
It also rebranded some of its hemp products and moved towards selling them online in the U.S., which has lead to improved performance quarter-on-quarter.
"I'm now confident that we have made the right strategic choices to create a sustainable growth business and we're looking forward to leveraging the solid foundations we've built as we approach key seasonal trading periods," Oliver said.
Shares in Elixinol Global ended the day trading up 3.33 per cent at 15.5 cents per share.