Synbiotic SE
German hashish and hemp group Synbiotic SE has issued a considerable downgrade to each its gross sales and revenue forecasts for the complete yr 2025 as Germany’s quickly inflated medical hashish bubble exhibits the primary indicators it could possibly be about to burst.
In an advert hoc disclosure printed on 10 October, Synbiotic stated it now expects consolidated gross sales of round €17 million and a web lack of roughly €1.5 million for this yr. This represents a considerable downgrade from its August 2024 projection of €30 million in gross sales and €1.7 million in revenue, estimates it says it reaffirmed earlier this yr after a powerful Q1 2025.
In accordance with the corporate, this downgrade is because of three key components. Firstly, and most urgent for firms working on the bottom, the flood of product and new gamers which have entered the market since April 01, 2024 has ‘oversaturated’ the market.
Synbiotic says that its medical hashish section has seen gross sales fall by round 50% in Q2, due to ‘market oversaturation and sell-off strain as a consequence of excessive import volumes’.
Moreover, the looming authorities evaluate into the market, notably ‘uncertainties in on-line gross sales’, have is now not theoretical and is now having an affect on companies.
Thirdly, and extra particularly to Synbiotic which operates throughout each the medical hashish and hemp industries, the Industrial Hemp Liberalization Act (NLG), accredited by the Federal Council on the finish of 2024, is but to applied, leading to ‘lower-than-planned gross sales within the space of industrial hemp merchandise’.
Notably, this week, Synbtiotic welcomed the Inexperienced Occasion’s drive to liberalise industrial hemp in Germany, arguing that clearer guidelines would enhance innovation, competitiveness, and authorized certainty for the sector.
The Greens’ draft to amend the Shopper Hashish Act, tabled on 7 October 2025, would take away the so-called intoxication clause, elevate the commercial hemp THC threshold from 0.3 % to 1 %, and allow indoor cultivation, bringing Germany nearer to regimes in elements of the EU such because the Czech Republic.
The intoxication clause has been a contentious and ‘incomprehensible’ a part of hemp regulation since CanG was applied final yr, which implies that farmers are solely in a position to produce industrial hemp with a THC content material of 0.3% or under if misuse for intoxicating functions is dominated out.
Successfully, misguided fears that hemp could possibly be used for leisure functions have meant it stays strictly regulated, regardless of Germany now permitting the house cultivation of high-THC hashish.
A analysis notice from NuWays AG on October, 20, 2025 echoed these issues, describing the corporate’s state of affairs as a interval of “non permanent regulatory overhang”. Analyst Christian Sandherr maintained a ‘Purchase’ suggestion on the inventory however diminished the 12-month value goal to €6.00 from €12.40, reflecting short-term headwinds and political danger.
The analysis additionally pointed to softer buyer demand, particularly amongst on-line pharmacies, and delays in hemp liberalisation as drivers of the weaker efficiency.
Nonetheless, the agency expects Synbiotic to stay on a progress path from 2026 onward, supported by its diversified portfolio and product innovation pipeline. Its newly developed THC pastille, designed to enhance dosing precision and affected person comfort, is predicted to launch in early 2026 and will strengthen its medical hashish providing.
By 2027, NuWays forecasts that Synbiotic’s income might recuperate to €25 million, implying a 16% compound annual progress fee (CAGR) between 2025 and 2027, alongside a gradual return to profitability.
