ECS Botanics reported a sharp rise in customer receipts in the three months to March as the company revealed it was exploring ways to extend the growing season.
Quarterly receipts hit almost A$4.4 million, up 265% on the previous corresponding period and 13% higher than the second quarter of FY23.
Revenues climbed 86% from last year to $3.8m, but were down 17% compared to the previous quarter, a decline blamed primarily on the impact of recent floods.
Record monthly sales of $2.4m were achieved in March, 36% higher than any previous month, the firm said.
“ECS continues to experience substantial and growing demand for its products,” the company said in a quarterly update to the ASX. “As a result, ECS will be trialling ways to extend the growing season, during the current off season.
“Indications are that, if the trials prove successful, ECS will also be able to achieve even higher yields.”
Cannabiz has approached ECS for further details.
The net loss used in operating activities for the period was $470,000, taking the nine-month figure to $759,000.
ECS had cash at bank at the end of the quarter of $2.11m.
During the period, ECS struck a three-year deal to send a minimum $9.9m worth of GMP-manufactured products to German operator Ilios Sante.
It has also announced plans to launch its own medicinal cannabis range, RAP Med, for military veterans at discounted prices.
Meanwhile, the firm’s flower packaging is to be undertaken by a Melbourne-based contract manufacturer in a move ECS said will lower costs as products will be shipped directly from the packaging facility to customers.
“As a result, our partner is investing in packaging automation thereby further lowering the cost of packaging as well as reducing logistics time and costs for ECS and our customers,” it said.
ECS shares climbed almost 5.3% to $0.02 in this morning’s trading.
