The market for medicinal cannabis is growing in Europe, says Paul Naske of Rua Bioscience. Photo / Dean Purcell
Expansion into another country, a significant increase in customer revenue, and a much smaller loss in the most recent financial year are signs Rua Bioscience is moving in the right direction, according to its chief executive.
This week, the company released its unaudited annual results for the 2025 financial year ended June 30, 2025.
It showed revenue from customers was $1,511,282, just over 17 times the company’s audited 2024 financial year revenue of $85,837.
Total revenue and other income for FY25 were $1,899,733 (unaudited), while it was $321,678 (audited) in the 2024 financial year.
Overall, the company still makes a loss. However, the figure has dropped significantly year-on-year.
Loss before tax in FY25 was $3,455,661 (unaudited), down from $13,718,754 in the previous year (audited).
Audited financial statements for FY25 are expected to come with the company’s annual report by the end of this month.
Chief executive (kaiwhakahaere) Paul Naske told the Gisborne Herald the results were pleasing.
“Revenue from customers is up and on an upward trajectory, and the loss is much reduced and moving in the right direction,” he said.
“It is reflecting our strategy and our plans, and it’s definitely moving in the right direction ... where we need it to head.”
Naske said the business was moving forward in the Czech Republic following a September launch into the market with distribution company Motagon.
Rua Bioscience was already established in Germany, Britain, Australia and New Zealand.
“Through FY26, we are continuing the trajectory to get more products into the key markets that we’re operating in and grow our market share and revenue in each of the key markets.”
Rua Bioscience had established its base in Germany – the largest medicinal cannabis market in Europe – through its relationship with health provider Nimbus Health since 2019.
European markets liked Rua Bioscience’s backstory, Naske said.
“The fact that we’re from New Zealand, and, in particular, the far East Coast of the North Island.”
The company has an office in Gisborne, but its focus is Ruatōria.
“Our heartland is Ruatōria,” said Naske, who has been with the company since 2019.
“That’s where we’re from, and that’s where the founders started this business on the basis of creating health and wealth for the community up there ... we’re just continuing on that sort of growth path.”
Rua Bioscience has five staff in Ruatōria, two in Gisborne and four who work remotely around New Zealand.
The FY25 revenue figure fell about $1.1m short of a forecast of $3m, made by Rua Bioscience during the last financial year.
When asked about this, Naske said the market was growing more slowly than many had thought it would.
“Like a lot of companies in medicinal cannabis in the early days, we thought the industry would play out differently than what it has,” Naske said.
“It’s been a lot tougher and harder than a lot of people expected ... to manufacture and cultivate commercial products in New Zealand is extremely tough, and there’s not many people doing it in New Zealand.”
Naske said a combination of regulations by the Government on manufacturing products for export and the supply of products from overseas had made it challenging.
The “billions that were forecasted” had not yet eventuated, but the markets were “definitely growing”.
Naske said the company had stuck to its founding purpose, but it had changed its strategy to become sustainable.
The company did not do commercial manufacturing and cultivation.
“The team [in Ruatōria] do selecting and breeding and crossing and finding good varieties of cannabis,” he said.
“We take those varieties and we work with other people to outsource cultivation and manufacture of products from our varieties.”
Changes to Government regulations in mid-2024 had made it easier to export products from New Zealand, he said.
Before that, Rua Bioscience had to meet two sets of regulations – New Zealand’s and the country being exported to.
The changes meant the company now only had to meet the regulations of the country where the product was going.
In New Zealand, the company had three approved medicinal cannabis products and a “Compassionate Access Programme” for people facing financial constraints.
Naske said patients in New Zealand had it much easier than they did five years ago.
“Five years ago, you couldn’t really access the medicine ... it was largely illegal, largely criminalised. You had to go to the Minister of Health to get approval ... and the major change was that it’s now available under prescription from any doctor.”
There had been “a massive uptake” by Kiwi patients, but it was costly, he said.
“On the one hand, legal access to cannabis is significantly up and it’s been a major success for many patients ... on the other hand, that medicine is not subsidised in any way by the Government, by Pharmac ... it’s expensive.
Naske is supportive of more research into medical cannabis and backs decriminalising personal consumption of cannabis, calling the current law “out of step with what is actually happening in New Zealand”.
“A lot of money gets spent by the justice system around prosecutions for small amounts of cannabis,” he said.
“If you’ve got a medical concern, you should talk to a doctor and cannabis should be part of that discussion, alongside other medications that may be appropriate. It should be one tool in the toolbox for doctors.
“But for people who ... grow cannabis, two plants in the backyard, they shouldn’t be criminalised for that.”
Rua Bioscience was listed on the NZ Stock Exchange in 2020, debuting at 70c a share. The current stock price is about 6c a share.