ECS Botanics generated revenue of A$5 million in the first quarter of FY25, up 22% on last year and 11% on the prior quarter, as exports and sales of in-house products began to take off.
The company said its B2C business, launched in May, is “growing strongly”, underpinned by a strategy to market products directly to prescribing doctors.
“Introducing a B2C strategy has provided a valuable diversification in the business, particularly as B2B sales continue to come under pressure due to large volumes of product in the market,” the firm said.
ECS said it expects sales to rise further following the launch of flower products in its Avani range and soft-gel capsules using its licenced VESIsorb technology.
But the investment in larger scale operations and in its retail brand strategy saw operating costs spike 28% on Q1 FY24 and 1.5% on the previous quarter.
It resulted in a net cash operating deficit of $774,000.
ECS said it remains well-funded with a cash balance of $2.7m and an undrawn NAB facility of $2m. As at September 30, the company had used $2.17m of a $4.4m asset finance facility.
The company said the construction of new protective cropping enclosures (PCEs) continues to progress. Two new enclosures set to be added this month have come “at a slightly higher cost” than previous PCEs , it said, due to the addition of sloping concrete floors with underfloor heating.
“These upgrades provide enhanced environmental control, improved worker ergonomics and enhanced cleanliness,” ECS said.
