Hygrovest Ltd (ASX:HGV) investee Weed Me has achieved substantial growth in net sales to CAD45 million in the twelve months ended 31 December 2022, up from CAD23 million in the same period in 2021.
Weed Me has also generated an impressive year-on-year growth in EBITDA to CAD4.9 million from CAD1.4 million.
The Weed Me brand consists of a complete line of dried flowers, pre-rolls, vapes, and gummy products, which have significant market shares in its key Canadian provincial markets.
Weed Me’s growth in terms of net revenue and EBITDA since HGV made its initial investment in 2017 is detailed in the below table:
Hygrovest’s net asset value before provision for deferred tax increased by 6%, from A$24.3 million to A$25 million, over the last six months of 2022.
Net asset value per share grew 3% from A10.6 cents to 10.9 cents and the share price grew 9% from A6.4 to 7 cents while the cash balance was A$4.7 million.
HGV’s profit after tax was A$700,000, compared with the same period in 2021, which saw a loss of A$5.3 million.
The main drivers of the financial performance in the period were a A$4.5 million unrealised gain on HGV’s two main investments, Weed Me Inc and Southern Cannabis Holdings (SCH) from the recovery in listed Australian and Canadian cannabis investment markets and the continued growth in the revenues of Weed Me and SCH.
These gains were partially offset by the A$1.5 million unrealised loss on the investment in the listed Vintage Wine Estates.
Hygrovest will release its audited financial statements for the half year ended 31 December 2022 by 28 February 2023.