EQS-News: Revenue expected to triple by 2027: Focus on growth markets for medical cannabis and industrial hemp underscores positive outlook for SYNBIOTIC

Revenue expected to triple by 2027: Focus on growth markets for medical cannabis and industrial hemp underscores positive outlook for SYNBIOTIC

The European company group for medical cannabis and industrial hemp SYNBIOTIC SE (ISIN DE000A3E5A59 | WKN A3E5A5) will focus its strategic expansion even more on the fastest-growing markets for medical cannabis and industrial hemp in the future.

Two fast-growing billion-euro markets create investment opportunities
At the heart of SYNBIOTIC's strategy is a dual market approach that captures long-term value in both the medical cannabis and industrial hemp markets. Daniel Kruse, CEO of the company group, sees this as a clear focus and sustainable positioning for the future: "With our strategy, we enable our investors to benefit from both the positive developments in the medical cannabis market and the strong upturn in the industrial hemp sector. This is a unique opportunity for investors."

Global market for medical cannabis growing by 55 per cent annually
According to forecasts, the global market for medical cannabis will grow at an annual rate of 55 percent from EUR 4.5 billion in 2024 to around EUR 62 billion in 2030. Growth drivers include ongoing legalisation, increasing social acceptance and the integration of cannabis into standard medical care. SYNBIOTIC's extensive range of medical cannabis products includes cannabis flowers, alternative dosage forms (e.g. cannabinoid pastilles), high-purity extracts and dronabinol.
The subsidiary WEECO Pharma GmbH has global import licences (e.g. Canada, South America and Thailand) and, together with GOC NEXUS as a cooperation partner, uses cold plasma technology to guarantee GMP (Good Manufacturing Practice) quality standards for cannabis flowers.

Excellent positioning with regard to German draft legislation
The current draft bill to amend the Medical Cannabis Act (MedCanG) aims to restrict the prescription of cannabis to personal doctor-patient contact and exclude mail order sales. The German Cannabis Industry Association (BvCW), SYNBIOTIC as a member company of the BvCW and other professional market participants reject some of the proposed amendments to the draft as incorrect, excessive and unnecessary. In view of its own corporate strategy, SYNBIOTIC sees a significant opportunity in a moderate adjustment of the current legal situation. "Our business model is designed in such a way that, in parallel with our distribution strategy incorporating telemedicine aspects, there is a strong focus on personal care and advice from local pharmacies. This means that even if the current draft law is implemented, the potential restrictions will be significantly less severe for our operational business than for many of our competitors," says Tony Schröter, co-managing director of WEECO Pharma, a subsidiary of SYNBIOTIC. In fact, the draft law confirms the Group's strategic direction: distribution via physical pharmacies, which will continue to be authorised to dispense prescription drugs even after a possible change in the law, is and will remain an integral part of the business model.

Growth market for industrial hemp with regulatory tailwind
The second pillar of growth is the market for industrial hemp, whose global turnover is forecast to reach EUR 15 billion by 2030 according to a UNCTAD report. This corresponds to a tripling of the market. In the areas of import, export and production of hemp foods, extraction, cosmetics and CBD products, experienced companies in the SYNBIOTIC Group (e.g. Hempro International and Solidmind Group) have established themselves as pioneers in the rapidly emerging European hemp industry. Regulatory advances, such as the expected German industrial hemp liberalisation act and the EU approval of CBD as a novel food, are opening up enormous commercial potential. Currently, demand for hemp food and hemp feed alone is showing an increase of 300 to 400 per cent this year compared to last year.

Sustainable growth determines the financial outlook
Consolidated revenue of around EUR 26 million is expected for the 2025 financial year. SYNBIOTIC plans to generate total revenue of EUR 48 million by 2027. This corresponds to a threefold increase compared to 2024. Average annual growth of over 22 percent is expected until 2029, with revenue likely to rise to EUR 58 million by then. The company is aiming for positive EBITDA by the first half of 2026 at the latest and expects an EBITDA margin of over ten percent by 2028. This positive development is driven by an expected disproportionate increase in demand for medical cannabis products, the enormous excess demand for hemp food and hemp feed, the commercial scaling of CBD preparations and innovative cannabis dosage formats, and long-term vertical integration into hemp-based value chains.

With its clear focus on two forward-looking markets, regulatory foresight and strong operational positioning, SYNBIOTIC is excellently positioned to sustainably implement its planned growth and establish itself as the leading investment platform in the European cannabis and hemp industry.

Publisher
SYNBIOTIC SE
Daniel Kruse
CEO
Münsterstraße 336
40470 Düsseldorf
Germany
www.synbiotic.com

Media Contact
Rüdiger Tillmann
SYNBIOTIC Public Relations Manager
Email ruediger.tillmann@synbiotic.com
Mobile +49 170 9651451
c/o JOLE.group

About SYNBIOTIC
SYNBIOTIC is a listed group of companies in the medical cannabis and industrial hemp sector with a buy-and-build investment strategy focussed on Europe. The Group covers the entire value chain from cultivation to production and retail - from the field to the shelf. The subsidiaries' core businesses are research and development, production and the commercialisation of medical cannabis, industrial hemp and CBD products.
SYNBIOTIC is pursuing a clear pan-European strategy of further expanding its business areas in order to cover the relevant growth markets while minimising risks and increasing opportunities for investors through diversification.