Australian medical cannabis company ECS Botanics Holdings Ltd (ASX: ECS) has announced its unaudited financial results for the 12 months ending 30 June 2024 (FY24) – and seems pretty pleased with the results.
ECS Botanics once had interests spread across a number of cannabis sectors – from hemp foods to wellness through to medicinal applications. In mid-2022, the company announced it would focus on medical cannabis and it appears to have paid off.
For the 12 months ending June 30, the company posted total revenue of $20.5 million, which was up 31% on the prior corresponding period. It achieved a net profit after tax of $2.0 million, up a whopping 305% on the prior corresponding period.
ECS also had a record harvest – 6.6 tonnes, up 57%. This will be sold as dried flower or extracted to manufacture cannabis oil products
ECS Managing Director Nan-Maree Schoerie said the harvest exceed expectations for quantity and quality through the company’s expertise in organic cannabis agriculture
“Recent feedback from German customer Ilios Santé states our first shipment sold out within 10 days – a testament to the quality of our organic, pharmaceutical-grade cannabis.”
To meet growing demand, the company invested in outdoor crop expansions and kicked off the procurement process for the construction of nine additional PCEs and upgraded four existing PCEs with heating and lighting. The first of these new PCE’s are expected to commence production early next month, with ECS aiming to have all nine completed by April 2025.
The company invested $2.4 million throughout the year into plant and equipment, which also include new genetics and propagation rooms. ECS says the upgrades put the firm on track to expand production to 13 tonnes by FY26.
Among its other activities during the period, ECS launched direct-to-consumer (B2C) sales of medicinal cannabis products through a 12 month agreement with Elite Medical Solutions.
Since the end of the period, NAB increased ECS’s asset finance facility from $1 million to $4.4 million; giving the company more flexibility to invest in tech and infrastructure. The firm also scored a $118,000 manufacturing grant from the Victorian State Government, which will be used to fund part of ECS’s expansion into production of live rosin cartridges for its own-brand and white label products.
The full report can be accessed here.
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