Cilo Cybin Holdings' interim losses mainly the result of corporate initiatives

Cilo Cybin Holdings’ share price fell sharply by 7.1% on Friday after its interim results showed a taxed loss of R212.2 million versus a R6m profit previously - the losses were mainly driven by accounting listing charges.

“Excluding the once-off IFRS 2 (listing) charge, the group would have ended on a profit of R5m,” the interim results said on Friday. The share price ended at R2.85 when the market closed.

A non-cash IFRS 2 listing expense of R217.5m was recognised, arising from the reverse acquisition and the issue of shares to acquire the listing status of Cilo Cybin.

Cilo Cybin is South Africa’s first licensed medical cannabis cultivator and remains one of the few vertically integrated players with both cultivation and manufacturing licences. It operates as a contract manufacturer for the cannabis industry, supplying GMP bulk APIs (active pharmaceutical ingredients) to both local and international markets.

The results reflected its performance following the completion of the acquisition of Cilo Cybin Pharmaceutical, the effective date of which was September 30, 2025.

Cilo Cybin transferred from the JSE's AltX to the Main Board, under the general segment, on September 29, 2025, less than 15 months after the initial listing onto the AltX, “which represents a significant achievement for the team,” the directors said.

These changes meant that the comparative numbers reflected those of CC Pharmaceutical and not those of Cilo Cybin, as previously presented in the audited annual financial statements for the year ended March 31, 2023.

Profit for the period was subdued due to delays in regulatory approvals, which hindered expansion into new product offerings. In the current financial period, the product mix had been changed to optimise profitability and operating efficiencies.

Revenue increased to R18.6m from R16.2m, driven by growth in the pharmaceutical and cannabis-derived product lines.

“Significant costs were incurred to complete the acquisition of CC Pharmaceutical, which negatively impacted profit; however, now that the acquisition has been completed, operating expenses are expected to normalise,” directors said.

The company ended the period with R58.3m cash versus R1.27m at the end of March, primarily due to the acquisition and consolidation of cash held by Cilo Cybin and CC Pharmaceutical.

Cilo Cybin implemented the acquisition by issuing 153.64 million consideration ordinary shares, 5.82 million loan settlement shares, and 57.61 million Class A unlisted ordinary shares.

Total assets increased to R108.9m from R46.6m at March 2025. The headline loss per share decreased to 285.98 cents compared with a 62.51 cents loss per share at the same time in 2024.

On future prospects, the directors said they expect continued growth in revenue as production expands, new product lines enter the market, and strategic partnerships mature.

They said the group was now positioned as a unified biotech and pharmaceutical operator, with enhanced access to capital markets.

The focus for the next period would include scaling manufacturing capacity, expanding export markets, optimising cultivation efficiencies, and advancing the group's wellness and biotechnology product pipeline.

“During the interim period, the company continued its evaluation and due diligence of potential acquisition targets aligned with its investment strategy,” the directors said.

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