Elixinol boosts margins and cash flow as Healthy Chef drives growth

An update from Elixinol Wellness ( (AU:EXL) ) is now available.

Elixinol Wellness reported Q1 FY26 revenue of $3.5 million, stable year on year in what it describes as its seasonally weakest quarter, while shifting its mix toward higher-margin products and channels. Gross margin rose to 45% from 37% a year earlier, supported by disciplined portfolio management, reduced exposure to lower-margin contracts, and an increased contribution from e-commerce and core brands.

The company delivered its second consecutive quarter of underlying positive operating cash flow as operating expenses fell 29% year on year, indicating a leaner and more efficient cost base. Strong demand for its Healthy Chef range, including the Metabolic Burn and Protein Water lines, drove a 25% jump in that brand’s revenue and a 36% rise in Australian gross profit, underpinning management’s confidence in a solid Q2 revenue outlook and providing a foundation for organic growth and potential M&A-led scaling.

More about Elixinol Wellness

Elixinol Wellness is an ASX-listed sustainable nutrition and wellness company based in Melbourne, focused on premium functional nutrition products. Its portfolio includes the Healthy Chef brand and hemp-based offerings, with a growing emphasis on e-commerce and higher-margin channels in the Australian market.

Average Trading Volume: 815,673

Technical Sentiment Signal: Sell

Current Market Cap: A$2.9M

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