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Sativa expects full-year profits to be ahead of guidance

Chief executive Henry Lees-Buckley said 2020 will be a “breakout” year after the group built a “solid platform for growth” in 2019

Sativa Group PLC - Sativa expects full-year profits to be ahead of guidance
Goodbody Wellness is Sativa's brand for the health and beauty industry

Sativa Group PLC (LON:SATI) expects gross profit and underlying earnings (EBITDA) for the year to 31 December to be ahead of guidance.

Revenue will come in more than five times higher than 2018, but it is set to be “marginally” lower than forecast, the medicinal cannabis company said.

READ: Sativa inks deal to distribute Goodbody Botanicals range to UK pharmacies

Chief executive Henry Lees-Buckley, appointed in August, said 2020 will be a “breakout” year after the group built a “solid platform for growth” last year.

Flagship brand Goodbody Botanicals, which was created and launched in the second half, “is already bearing fruit”.

This CBD oil products range has attracted “strong interest” from high street retailers while it is being sold in independent UK pharmacies.

Sister brand Goodbody Wellness is set to launch in health and beauty locations such as high-end retail, spas, health and wellness centres.

The company also ran three pilot retail stores to test the potential for a franchising system.

While the pilot scheme did not deliver to the group’s expectations, Sativa said it had learnt from this and “now plan on modifying the model to introduce smaller and lower cost concession locations, while expanding our product range”.

The NEX-listed company added that direct selling platform Tessellate Collective and PhytoVista Laboratories started the new year well.

First cannabis was also harvested this month as part of a collaboration with King's College London to cultivate cannabis for research.

Quick facts: Sativa Group PLC

Price: 3.88 GBX

NEX:SATI
Market: NEX
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