Cann Group (ASX:CAN) Posts $3.45m Quarterly Revenue as Export Sales Grow

Sonal Goyal

30 October 2026 05:27 PM AEDT

Cann Group (ASX:CAN) Posts $3.45m Quarterly Revenue as Export Sales Grow

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Highlights

Unaudited revenue for the quarter was $3.45m, about 70% above the H2 FY2026 quarterly average.
Export sales made up about 40% of revenue, up from 16% in FY2026.
Inventory fell by $1.2m, or 23%, to $4.2m.
The company redeemed its Obsidian convertible notes and increased its Private Credit Loan Facility by $2m.

Cann Group Limited (ASX:CAN) has released its quarterly activities report and Appendix 4C for the quarter ended 30 September 2026. The medicinal cannabis producer, which operates a large-scale GMP facility near Mildura in Victoria, reported higher revenue led by export demand.

Revenue Growth Led by Exports

Unaudited revenue for the quarter was $3.45m, equal to about 40% of the company's total FY2026 revenue. Exports accounted for about 40% of revenue, compared with 16% in FY2026, and the company said further orders were in hand for December.

European demand, led by Germany, continues to grow for GMP-certified supply. The Mildura facility is TGA-GMP licensed with an A1 good compliance rating and is recognised under mutual recognition arrangements with the EU and UK. Domestic prices remain under pressure from imports.

Cost Reduction and Cash Flow

Over the past two years, cash costs have fallen 59% while receipts declined 20%. The six-month operating outflow excluding grants was $0.9m, compared with $2.9m in each of the two prior periods.

Net operating cash outflow for the quarter was $0.73m, reflecting a $0.89m increase in receivables as invoicing was weighted to September. The company expects these receivables to be collected in the December quarter. Inventory was reduced by $1.2m to $4.2m, and the migration from Sage to Elevated Signals and Xero was completed alongside new in-house AI planning tools.

Funding and Industry Outlook

Cash at quarter end was $0.05m. The Private Credit Loan Facility had a total commitment of $17.356m, of which $16.73m was drawn. The company received a formal lender waiver for covenant breaches, and the Appendix 4C estimates 0.9 quarters of funding. Directors expect the company can continue operating, citing receivables collection, an expected R&D tax incentive refund and facility headroom.

Cann Group also outlined its view that the cannabis sector would benefit from consolidation and said it is engaging with industry participants, although no binding agreements exist. FY2027 priorities include converting export opportunities, growing domestic sales and maintaining cost discipline.

Key Takeaways

Quarterly revenue rose sharply, with exports now a much larger share of sales.
The cost base has been reduced significantly over two years.
Operating cash outflow reflected a temporary build in receivables expected to unwind in the December quarter.
Funding remains tight, with a short estimated runway and a lender covenant waiver in place.

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