ECS Botanics has announced record consolidated revenue of A$15.6 million for FY23, more than doubling the A$7.2 million recorded in FY22, while delivering EBITDA from continuing operations of $1.6 million at a 10% margin.
Throughout the year, the company generated positive net operating cashflow, which it attributed to strong product demand and cost-effective cultivation practices. Production reached a record 4.2 tonnes — a 51% increase compared to the 2022/23 growing season.
In its ASX filing, ECS Botanics said it remains well capitalised, holding a cash balance of $2.5 million as at June 30, 2023, alongside access to a recently expanded National Australia Bank loan facility of $2 million that has not been drawn upon.
Managing director Nan-Maree Schoerie described FY23 as a "transformational year" in which ECS became a profitable business "producing pharmaceutical-grade medicinal cannabis" and "Australia's lowest cost and most sustainable cultivator and manufacturer".
Looking to the year ahead, she said: "Several multi-year contracts signed with domestic and international customers will start in earnest in FY24, while our partnership with Sunpharma for advanced resin extraction promises increased profitability for our oil products.
"The Office of Drug Control approved the expansion of our pharmacy-grade manufacturing facility which will allow an increase to 15 acres with 26 protective cropping enclosures, lifting our potential annual production capacity to 13.7 tonnes of medicinal cannabis products to EU-GMP standards.
"Harnessing ECS's pharmaceutical GMP facilities and continuing to evolve our intellectual property remains pivotal in our pursuit of a differentiated strategy."
In June, ECS entered into a 10-year licence agreement with Geocann to use its VESIsorb technology — a deal Schoerie said would position the company as a technology leader in pharmaceutical-grade medicinal cannabis oils.
She added: "VESIsorb increases the bioavailability of cannabinoids by 400%, making it substantially more cost-effective, and is uniquely absorbed by the user three-times faster than current methods.
"We have built a strong foundation as our core underlying business generates cash and we have a capital-light business model that allows us to grow and manage scale as demand dictates.
"Investing in pharmaceutical biotechnology will allow us to manufacture an increasing number of products to EU-GMP standards, selling pharmaceutical-grade products to customers in Australia and a growing number of overseas markets."
ECS Botanics was a three-time winner at the The Cannabis Observer Awards 2023.
