ECS Botanics recorded revenue of A$5 million in the first quarter of FY25, a 22% increase year-on-year and 11% above the prior quarter, driven by growing export activity and stronger sales of the company's own-brand products.
The company said its B2C division, launched in May, is "growing strongly", supported by a targeted approach of marketing products directly to prescribing doctors.
"Introducing a B2C strategy has provided a valuable diversification in the business, particularly as B2B sales continue to come under pressure due to large volumes of product in the market," the firm said.
ECS anticipates further sales growth following the introduction of flower products within its Avani range and soft-gel capsules produced using its licensed VESIsorb technology.
However, investment in expanded operations and the development of its retail brand pushed operating costs up 28% compared to Q1 FY24 and 1.5% above the preceding quarter.
The net result was a cash operating deficit of $774,000.
ECS said it is adequately funded, holding a cash balance of $2.7m alongside an undrawn NAB facility of $2m. As at September 30, the company had drawn $2.17m from a $4.4m asset finance facility.
Work on new protective cropping enclosures (PCEs) is continuing to advance. Two additional enclosures due to be completed this month have come "at a slightly higher cost" than earlier PCEs, the company said, owing to the inclusion of sloping concrete floors fitted with underfloor heating.
"These upgrades provide enhanced environmental control, improved worker ergonomics and enhanced cleanliness," ECS said.
