ECS Botanics Holdings, an Australian medical marijuana cultivator in Victoria, reported a significant jump in revenue to 7.3 million Australian dollars ($6.5 million) in its second fiscal quarter ending Dec. 31.
The company reported revenue in the October-December quarter was a 78% increase over the same three months one year earlier, when sales were AU$4.1 million, according to a news release.
ECS Botanics credited the growth in sales to increased revenue from both oils and flower from existing medical cannabis customers along with the addition of new “key customers.”
Some highlights for the quarter include:
- Sending a trial shipment to Ilios Santé, a pharmaceutical company in Frankfurt, Germany.
- Expanding the company’s outdoor cultivation area by 60%.
- Positive operating cash flow of AU$321,000.
“We continue to build on our strong start to the financial year, harnessing our strategic positioning as Australia’s lowest-cost medicinal cannabis cultivator and manufacturer,” Managing Director Nan-Maree Schoerie said in a statement.
“The expansion of our cultivation areas and the incorporation of findings from our R&D project are crucial in meeting the increasing demand for ECS’ products and will allow us to substantially increase production.”
In the previous quarter, ECS said it signed a binding offtake agreement worth AU$24 million with Medicann Heath Pty, a medical cannabis company based in Perth.
Under the deal, which begins this month, ECS said it will supply 4 tonnes (4.4 U.S. tons) of pharmaceutical-grade dried cannabis flower over five years to MediCann.
ECS said it had AU$2.6 million in cash.
