- ECS Botanics (ECS) forecasts a fivefold increase in quarterly revenue through to the end of March as it continues to transition to a medicinal cannabis-dominant business
- The company expects to table $2 million in revenue for the March 2022 quarter — up from the December 2021 quarter’s $1.4 million and the March 2021 quarter’s $371,000
- ECS says the increase comes from a strategic shift in its core business from hemp to medicinal cannabis products, which now account for about 80 per cent of sales
- In light of its evolving business, ECS has appointed industry expert Jason Overfors as the Post-Harvest Production Manager of its Victorian facilities
- ECS shares up four per cent to 2.6 cents
Hemp specialist ECS Botanics (ECS) has forecast a fivefold increase in quarterly revenue through to the end of March as it continues to make the shift to a medicinal cannabis-dominant business.
The company said it was on track to table $2 million in total revenue for the March 2022 quarter, a 39 per cent increase on the December 2021 quarter’s $1.4 million in revenue and a 440 per cent rise on the $371,000 in revenue posted in the March 2021 quarter.
ECS said it expected revenue increases to continue beyond March given the ongoing demand for its dried flower and cannabis oil products.
The past 12 months have seen a major step-change in how ECS derives its revenue, with medicinal cannabis products now accounting for about 80 per cent and hemp sales about 20 per cent of group revenues.
The hemp division generated 100 per cent of the company’s sales in the March 2021 quarter.
ECS said the strategic transition in its core business to the medicinal cannabis market reflected greater margins in the sector and “long-term value for shareholders”.
ECS Managing Director Alex Keach said the company’s “seed to good manufacturing practice (GMP)” product business model for the business-to-business (B2B) market was resonating with a range of customers.
“The sector is going through a shake-out and period of consolidation, from which ECS is benefitting with the onboarding of new customers,” he said.
“As sales continue to increase, we remain focussed on cost management, product quality, harvest and production optimisation.”
ECS has appointed industry expert Jason Overfors as Post-Harvest Production Manager of its Victorian facilities.
Mr Overfors has worked for several years in the cannabis space, most recently as the Harvest Manager for Nasdaq-listed Hexo Corp.
“Jason has an extensive skill set, which we look forward to leveraging for our current harvest post-harvest production,” Mr Keach said.
“His knowledge of the cannabis sector will be instrumental in our growth trajectory.”
ECS said Mr Overfors will help the company increase production at scale and support cost management initiatives, implementation of efficient automated technology and sustainable farming protocols.
initiatives to build its sales pipeline.
ECS shares were up four per cent to 2.6 cents at 2:49 pm AEDT.