Germany's Medical Marijuana Market Is Booming, Says Cannabis Producer Reporting Record Quarter

Benzinga · 10/18 16:16

Cantourage Group SE reported its financial results for the period from July 1 to September 30 revealing a new record quarter in the company's history. The Berlin-headquartered cannabis company posted revenue of EUR 13.2 million ($14.32 million).

Last month, the company announced that it had exceeded its total annual revenue for 2023 (EUR 23.6 million) from Jan.1 to August 30, 2024, by posting revenue of EUR 24.9 million. Another positive EBITDA, between EUR 900,000 and EUR 1.1 million in the third quarter of 2024, suggests Cantourage can convert current developments in European medical cannabis markets into sustainable, profitable growth. Revenue of at least EUR 40 million is expected for the full year of 2024.

"It is important for investors to realize that the only areas in Germany and Europe in which truly profitable and growing business models can be established and monetized are those related to medical cannabis," stated Philip Schetter, CEO of Cantourage, according to translation. "I am not aware of any German company that is growing significantly and operating profitably with seeds, cuttings and non-commercial association structures."

Read Also: German Medical Marijuana Sales To Reach $1.09B By 2028, New Report

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Partial cannabis legalization took effect in Germany on April 1, allowing people over 18 to legally possess up to 25 grams of dried cannabis and cultivate up to three plants at home. One of the biggest breakthroughs under the law is that medical cannabis is essentially regulated like ibuprofen.

Cannabis clubs became legal on July 1, 2024, and the first such marijuana social clubs opened their doors on July 8 in Lower Saxony. However, across many other states, applications for cannabis cultivation associations face multiple setbacks. In August, Berlin granted its first permission for cannabis cultivation.

"The real legalization of recreational cannabis that contains THC, as is the case in North America, for example, is off the table here for the time being," added Schetter. "Nevertheless, medical cannabis is here to stay and will continue to grow. We are pleased that so many people in Germany have found their way to cannabis therapy in the past few months. This development will definitely continue in the future. Millions of cannabis users who have so far treated themselves for sleep disorders, pain or other widespread diseases – and have often resorted to unsafe products from the black market for this purpose – can now access safe preparations in pharmaceutical quality. We deliver these products through our flexible and efficient sourcing model, which we can and will continue to scale up in the months ahead. One thing is clear to us: regardless of what happens in the recreational market, the medical market will play the leading role in the years to come in ensuring that people in Germany and other European countries have access to safe, tested cannabis."

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