Australia’s ECS Botanics reports record first-half cannabis revenue of AU$11.3M

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(The headline has been updated to correct the dollar figure.)

Australia-based ECS Botanics Holdings reported profitable operations for the six months ended Dec. 31, 2023, on increased medical cannabis revenue.

The company’s net profit after tax (NPAT) amounted to 1.2 million Australian dollars ($780,000) in the first six months of the fiscal year, a substantial improvement over the AU$1.4 million loss in the same period one year earlier, according to a news release.

Revenue in the same period increased to a record AU$11.3 million, a 66% increase over the previous first-half sales of AU$6.8 million.

Free cash flow was AU$400,000.

In the release, the company attributed the accelerated growth rate to substantial increases in local and international contract agreements.

“ECS is now seeing the benefits of our capital light-business model and our ability to effectively build scale into our operations,” ECS Managing Director Nan-Maree Schoerie said in a statement.

Schoerie said strong sales of cannabis oil and flower and an expansion of the company’s white-label product range underscored the demand for their products both within Australia and overseas.

“Recent capacity upgrades to our pharmaceutical-grade production facility are allowing us to service our offtake agreements, increase volumes to white label supply partners as demand for ECS medicinal cannabis builds,” she said.

Earnings before interest, taxes, depreciation and amortization (EBITDA) in the first half almost doubled compared to a year ago, to AU$1.9 million, reflecting increased sales and focus on profitable growth, the company said.

“ECS is focused on continuing to build scale in its operations and broadening our customer base globally,” Schoerie said.

“The expansion of our outdoor cultivation space, coupled with the commercial integration of our successful R&D, positions us well to increase production and optimise quality of our EU-GMP standard products.”

ECS said it had AU$2.6 million in cash.

Shares of the company trade on the Australian Securities Exchange as ECS.