ECS Botanics cut its losses in half and grew revenue by close to 200% over the six months to December, all while contending with floodwaters that threatened to engulf its facility.
Sales jumped from A$2.3 million to $7m on the back of strong demand from domestic and international markets, pushing after-tax losses down from $2.7m to $1.4m.
A $500,000 reduction in labour costs also supported the improved result, though the cost of goods sold rose from $1.7m to $6.3m as the company scaled up production.
To support that expansion, two of six additional cropping enclosures were constructed during the period, with the remaining four expected to be finished shortly.
Chief executive Nan-Maree Schoerie credited her team for delivering such positive results while floodwaters continued rising around the Murray River site.
With roads cut off, staff had to commute to and from the facility by boat throughout the second quarter. At the height of the flooding in November, members of the surrounding community stepped in to help shield the site from the encroaching water.
"The last six months have been unusually challenging as we continued operations while being surrounded by flood waters because of the Victorian floods," Schoerie said. "The resilience and engagement of our employees meant we were able to fulfil orders despite the logistical challenges.
"It is therefore even more pleasing that the company was able to achieve record revenue growth and the significant milestone of being cashflow positive for the December quarter."
After three growing seasons, ECS also announced it had developed its own proprietary strain called "Murray Pineapple," which the company anticipates harvesting and bringing to market within the next three months.
During the same period, ECS signed an agreement to import and supply a volume-managed vaporiser that will be filled with ECS flower and made available to customers "soon".
The company held cash and cash equivalents of nearly $3m at the close of the period.
