Australia Primary Hemp Limited (ASX:APH) published its quarterly report last week – and the market indicated things were looking pretty good.
The company kicked off in August 2016 and today handles everything from seed selection, cultivation and processing to packaging under contract, bulk and retail sales. Its products are made exclusively with Australian hemp seed. On the retail side of things, the firm offers hulled hemp seeds, hemp seed oil and various other related food products.
APH is another of Australian quiet cannabis achievers. While a publicly listed company, news in recent months has been scant – in fact, apart from an announcement regarding a change of Chief Executive Officer and Board in March, the previous ASX announcement was back in December last year when it inked a deal with Freshwater Brands concerning an exclusive supply agreement.
In the recently released quarterly report, the company says it recorded quarterly revenue of $0.45 million for Q3 2020, which was up 25% on the previous quarter and up 748% (not a typo) on the same quarter last year.
March was particularly good, which would have pleased freshly-minted CEO Neale Joseph ,who assumed the position last month following his appointment in January as Head of Product and Strategy. The report also notes several new products are ready for launch, without going into detail as to what those are.
As for the impacts of COVID-19, the company advises it isn’t experiencing any problems, but is monitoring the situation closely. It’s an ill wind that blows nobody any good, with Australian Primary Hemp stating it will benefit from Australian Government programs assisting businesses during the COVID-19 pandemic.
Regarding the road ahead, Australian Primary Hemp seems very positive, stating:
“A strengthened sales team and new leadership should enable APH to capitalise upon its substantial pipeline of sales and business development opportunities … With a cash balance of $2.9m at 31 March, together with projected revenue progress and a significantly reduced burn rate, the business is well positioned for growth during 2020.”
The market was obviously pleased with the company’s report, with share value doubling on the news, ending a trend of decline since listing on the ASX in October last year.
It seems APH has been a bit like a duck – seemingly not much happening above the waterline, but paddling flat out below it.