ECS Botanics (ASX:ECS) reports 94pc increase in Dec quarterly revenue

• ECS Botanics (ECS) reports significant growth in its December quarter, achieving its key milestone of positive quarterly cashflow
• The company recognised quarterly revenues of $4.56 million in the December quarter, a 94 per cent increase from the $2.35 million in the September quarter
• This brings the 2023 half year revenues equating to 96 per cent of prior full year revenues at $7.18 million in FY2022
• The company concluded its Tasmanian business and assets sale for $3 million as part of its strategy to invest for growth and focus on the Victorian medicinal cannabis operation
• At market close, shares in ECS Botanics traded at 2.5 cents

ECS Botanics (ECS) has reported significant growth in its December quarter, achieving its key milestone of positive quarterly cashflow.

The company recognised quarterly revenues of $4.56 million in the December quarter, a 94 per cent increase from the $2.35 million in the September quarter.

This brings the 2023 half year revenues equating to 96 per cent of prior full year revenues at $7.18 million in FY2022.

ECS record $3.86 million in customer receipts, which is a 51 per cent quarter-on-quarter increase and a 159 per cent increase on the prior corresponding period.

Despite costs incurred by the recent flooding, the company was able to generate net cash from operating activities of around $170,000.

The company said this is a significant milestone and represents a $460,000 increase from the previous quarter.

On the investment side, the company is continuing to invest in expanding and enhancing its cultivation and manufacturing facilities to meet ongoing demand for quality dried flower.

The company also installed and commissioned two new protective cropping enclosures and commenced construction of another four enclosures which are scheduled to be completed in February.

“It is pleasing to see the high levels of demand for medicinal cannabis products that the Company has been experiencing begin to translate to financial performance,” Chair Jeremy King said.

“Having successfully refocussed and streamlined the business over the last 6 months, we look forward to continued growth and expansion.”

The company concluded the sale of the Tasmanian business and assets for $3 million and finalised all activities relating to the food and wellness business as part of its strategy to invest for growth using non-dilutive funding and focussing on the Victorian medicinal cannabis operation.

At market close, shares in ECS Botanics traded at 2.5 cents.

Written by: Desiree Durrani

Originally published in The Market Herald — 16 January 2023