Synbiotic SE
German cannabis and hemp group Synbiotic SE has issued a substantial downgrade to both its sales and profit forecasts for the full year 2025 as Germany’s rapidly inflated medical cannabis bubble shows the first signs it could be about to burst.
In an ad hoc disclosure published on 10 October, Synbiotic said it now expects consolidated sales of around €17 million and a net loss of approximately €1.5 million for this year. This represents a substantial downgrade from its August 2024 projection of €30 million in sales and €1.7 million in profit, estimates it says it reaffirmed earlier this year after a strong Q1 2025.
According to the company, this downgrade is due to three key factors. Firstly, and most pressing for companies operating on the ground, the flood of product and new players that have entered the market since April 01, 2024 has ‘oversaturated’ the market.
Synbiotic says that its medical cannabis segment has seen sales fall by around 50% in Q2, thanks to ‘market oversaturation and sell-off pressure due to high import volumes’.
Furthermore, the looming government review into the market, particularly ‘uncertainties in online sales’, have is no longer theoretical and is now having an impact on businesses.
Thirdly, and more specifically to Synbiotic which operates across both the medical cannabis and hemp industries, the Industrial Hemp Liberalization Act (NLG), approved by the Federal Council at the end of 2024, is yet to implemented, resulting in ‘lower-than-planned sales in the area of industrial hemp products’.
Notably, this week, Synbtiotic welcomed the Green Party’s drive to liberalise industrial hemp in Germany, arguing that clearer rules would boost innovation, competitiveness, and legal certainty for the sector.
The Greens’ draft to amend the Consumer Cannabis Act, tabled on 7 October 2025, would remove the so-called intoxication clause, raise the industrial hemp THC threshold from 0.3 percent to 1 percent, and permit indoor cultivation, bringing Germany closer to regimes in parts of the EU such as the Czech Republic.
The intoxication clause has been a contentious and ‘incomprehensible’ part of hemp regulation since CanG was implemented last year, which means that farmers are only able to produce industrial hemp with a THC content of 0.3% or below if misuse for intoxicating purposes is ruled out.
Effectively, misguided fears that hemp could be used for recreational purposes have meant it remains strictly regulated, despite Germany now allowing the home cultivation of high-THC cannabis.
A research note from NuWays AG on October, 20, 2025 echoed these concerns, describing the company’s situation as a period of “temporary regulatory overhang”. Analyst Christian Sandherr maintained a ‘Buy’ recommendation on the stock but reduced the 12-month price target to €6.00 from €12.40, reflecting short-term headwinds and political risk.
The research also pointed to softer customer demand, especially among online pharmacies, and delays in hemp liberalisation as drivers of the weaker performance.
Nonetheless, the firm expects Synbiotic to remain on a growth path from 2026 onward, supported by its diversified portfolio and product innovation pipeline. Its newly developed THC pastille, designed to improve dosing precision and patient convenience, is expected to launch in early 2026 and could strengthen its medical cannabis offering.
By 2027, NuWays forecasts that Synbiotic’s revenue could recover to €25 million, implying a 16% compound annual growth rate (CAGR) between 2025 and 2027, alongside a gradual return to profitability.
Chill Brands
Chill Brands Group PLC has reached a settlement with a former professional adviser in connection with a series of disputes that disrupted the company in 2024, marking another step in its efforts to resolve legacy governance issues and restore stability.
Meanwhile, the CBD retailer said that it has completed its transition from an own-brand consumer products business to a diversified distribution and services group, as it prepares to launch a new online wholesale platform and expand its portfolio of partner brands.
In a brief statement, the consumer packaged-goods distributor said the amicable settlement provides for a £210,000 cash payment to Chill Brands. Both parties agreed to treat the matter as fully resolved, with no further comment on the specifics.
The company did not name the adviser involved. However, the announcement is likely in relation to the legal and professional disputes that followed the internal investigation into former executives Antonio Russo and Trevor Taylor, who were accused in mid-2024 of transferring company assets and funds without board approval. That episode coincided with the suspension of Chief Executive Callum Sommerton over insider trading allegations that were later found to be unsubstantiated.
The governance turmoil contributed to significant delays in financial reporting, which led to Chill Brands’ shares being suspended on the London Stock Exchange for several months earlier this year. The company has since filed its outstanding annual and interim accounts and resumed trading.
While the £210,000 payment is modest in financial terms, it represents a symbolic step in clearing legacy liabilities and refocusing management attention on the company’s new UK- and Europe-centred distribution strategy.
With this in mind, in a strategy update published on Monday, the company described itself as a ‘very different business’ from the one it was at the start of 2024, with a scalable, distribution-led model designed to connect consumer brands with retailers and consumers in the UK and Europe. Chief Executive Callum Sommerton said the shift positions the firm for ‘long-term, sustainable growth’.
Chill Brands said it is now actively engaged in discussions with additional brand owners seeking entry into the UK market and expects to announce new distribution partnerships as the business expands.
A central part of the company’s growth strategy is the launch of an online wholesale platform in the final quarter of 2025. The digital service will allow independent convenience retailers to order directly from Chill Connect for delivery, improving accessibility and efficiency in the supply chain.
As part of the restructuring, Chill Brands has substantially eliminated costs associated with its former US operations, which historically incurred annual expenses of over USD 650,000. The company said the closure of the US division ‘marks a decisive step toward a leaner and more efficient operating structure’.
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Wellnex Life
Australian operator Wellnex Life said it will fully exit the medicinal cannabis segment after just over a year, as part of an ongoing internal review aimed at improving operational efficiency and strengthening its balance sheet. The decision follows a weaker September quarter in which delayed licensing income and higher manufacturing costs weighed on results.
The consumer healthcare and wellness group reported sales of A$5.4 million for the three months to 30 September 2025 (Q1 FY26), down 18.2 per cent from the previous quarter’s A$6.6 million. The decline was largely attributed to an 82 per cent fall in IP licensing revenue, which is now expected to be invoiced in the coming months. By contrast, branded product sales rose 4.1 per cent to A$5.1 million.
Gross profit fell to A$1.8 million (35.2 per cent margin) from A$2.5 million (37.9 per cent) in Q4 FY25. Cash receipts totalled A$4.5 million, while net operating cash outflow was A$2.9 million, reflecting increased manufacturing costs, repayments of long-term liabilities, and a one-off raw-material purchase for its Pain Away brand intended to improve future margins.
As part of the review, Wellnex confirmed that it will cease all operations under the Wellness Life medicinal cannabis brand, including closing related joint ventures. Management said that while the Australian medicinal cannabis market still presents opportunities, it requires heavy investment and has become increasingly competitive.
The segment contributed less than 1 per cent of group revenue in FY25 and is not expected to have a material financial impact going forward. The exit will allow Wellnex to concentrate resources on core consumer health and wellness brands and its intellectual-property licensing platform, which the company expects to drive medium-term growth.
