ECS Botanics recorded positive operating cashflow of A$282,000 during Q1, FY24 with revenue up 78% on the previous corresponding period.
While revenue fell from Q4, FY23’s record $4.8m to A$4.1 million, the firm said this was in line with previous trends.
ECS told the ASX it remains well funded with a cash balance of $2.5m as at September 30, 2023. Its loan facility of $2m with National Australia Bank (NAB) remains undrawn.
A record 106,000 units of medicinal cannabis oils were ordered during the quarter, up 109% on the previous highest volume of 50,624 units ordered in Q2, FY23.
Earlier this month, the firm secured a $24m off-take agreement with Medicann Health to supply medicinal cannabis dried flower over five years, bringing the total of large material off-take agreements executed in the last 10 months to $48.5m.
It has also formalised a partnership agreement with Steritech under which it will be able to offer GMP contract packaging to customers wishing to import medicinal cannabis dried flower.
Meanwhile, ECS said its R&D project to introduce heating and lighting into a protective cropping enclosure to assess the ability to grow over winter is showing “very promising signs”. Harvest will occur in late October when the THC content of the winter grow will be assessed.
The firm added: “The trials of different phenotypes have also highlighted some stand-out genetics that will be developed for use in the December /January plantings.”
Managing director Nan-Maree Schoerie said a 58% increase in cash receipts from customers compared to Q1, FY23 drove another period of positive net operating cashflow, “further demonstrating the robustness of our business model and financial stability”.
She added: “While revenue was slightly down on Q4, FY23, the last quarter of the financial year is traditionally strong due to customer buying patterns.
“We are pleased to see a 78% revenue increase on the previous corresponding period, showing the sustained growth of the business.”
“Additionally, we are experiencing a steep increase in demand for our medicinal cannabis oils with over 100% growth in orders compared with the highest previous quarter, which will be delivered in the second quarter of this financial year.
“We have commenced FY24 with strong momentum and a growing portfolio of off-take agreements and orders, underpinned by a strong financial model.”