Althea Group Holdings (ASX: AGH) has revised its financial guidance for the year ending 30 June 2025, citing a weaker operating environment and strategic business adjustments. The company now expects revenue in the range of $26 million to $33 million, a significant reduction from its previous forecast of $50 million to $57 million. Positive adjusted EBITDA guidance has also been lowered to between $0.8 million and $1.1 million, down from the previous estimate of $4 million to $5.5 million.
The revision is primarily driven by a 60 percent reduction in projected sales for Althea’s pharmaceutical cannabis division, reflecting prolonged supply chain disruptions for high-turnover products and increased competition in Australia and the UK.
Additionally, Althea has abandoned its planned vape product initiative, which was expected to generate up to $8.2 million in revenue and $720,000 in EBITDA. The company stated that the decision was made to improve capital efficiency, mitigate regulatory risks, and focus on high-growth market segments.
Despite the revised outlook, Althea remains optimistic about its long-term strategy. The company is restructuring its pharmaceutical business to enhance efficiency, with a shift towards business-to-business commercial opportunities. It is also assessing strategic alternatives to maximise shareholder value.
Althea’s North American operations continue to perform well. Peak Processing Solutions (Peak Canada) maintains strong demand for its THC beverage products, while Peak USA has completed its first THC beverage production run and is now establishing a foothold in the emerging US market.
The company reiterated its commitment to disciplined capital allocation and strategic opportunities aimed at improving cash flow and long-term profitability.
