ECS Botanics records six-fold revenue increase as global demand for its sustainably grown cannabis soars
Health & Biotech
Health & Biotech
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ECS Botanics is experiencing rapid revenue growth as it gains a reputation globally as a leader in the sustainable production of medicinal cannabis and hemp products.
Leading medicinal cannabis and hemp company ECS Botanics has reported record revenue of ~$900,000 for the quarter ended 30 September 2021 as the company continues to experience high demand for its products.
The revenue is a 123% increase on the previous quarter Q4 FY21 of $403,000 and a 616% increase on the previous corresponding period Q1 FY21, which recorded $146,000.
The upward trajectory for Q1 FY22 was underpinned by significant demand that ECS continues to achieve for its GMP manufactured medicinal cannabis products, as well as sales of its hemp products.
ECS is gaining traction as the supplier of choice for a range of local and international clients, securing a long line of new revenue-generative supply deals to underpin the company’s strong top-line growth.
ECS is confident that the upward trajectory in revenue and sales will continue to increase over the coming quarters as demand for medicinal cannabis soars both in Australia and overseas.
SAS-B approvals for medicinal cannabis by the Therapeutics Goods Administration rose sharply to 13,666 in September, outstripping the record high set in August by more than 25%.
It takes the 12-month rolling total of SAS-B approvals to 104,374, according to data from the TGA.
The regulator revealed there were 1,016 total prescribers in September, with chronic pain accounting for more than half the conditions for which medicinal cannabis was prescribed.
Anxiety accounted for nearly 4,000, followed by sleep disorder, cancer pain and symptom management.
Almost 7,700 prescriptions in September were for oil, representing a 56% share with dry flower for inhalation taking a 40% share with 5,480 prescriptions.
ECS Botanics managing director Alex Keach told Stockhead to meet increased demand, ECS plans on planting 4,000kg of medicinal cannabis in the this year with cultivation activities and preparation underway at its facilities in Tasmania and Victoria. Sales are currently being filled via the company’s existing medicinal cannabis storage.
“We are doubling our production of dry flower this year as demand increases,” Keach said.
“It’s like the stars are aligning for us with the dry flower for inhalation market as we see prescriptions rising substantially to that 40% share and expected to grow.”
Keach, who grew up on the land, has an agricultural and capital markets background, while executive general manager Nan-Maree Schoerie has been a country manager for multinational firms and has a pharmaceutical background. Its this combination of skill sets which has allowed ECS to execute its Farm to Pharma business model in record time.
He said when medicinal cannabis became legalised, cultivation practices were reflective of non-traditional black-market production.
“Cannabis was originally grown indoors so it was away from the police, howeverwhen medicinal cannabis became legal in Australia this indoor phenomenon continued – under lights, heat, humidity systems etc” he said.
“But cannabis is just another plant at the end of the day, and our team has developed practical cultivation methods for dry flower, while for our oils and biomass business we are leading the way in agriculturalizing and commoditising the industry.”
For cannabis regulators in Australia, the focus has been on the controlled cropping, manufacturing, and sale of medicinal cannabis, rather than the recreational (THC) sector.
Keach said that regulatory backdrop has created clear parameters around how the market operates along with improving production methods.
One of the ECS facilities is along the banks of the Murray River in northwestern Victoria. With its hot and sunny weather, the region has had a long history of illegal cultivation of cannabis
“We grow on the banks of the Murray River near Swan Hill in Victoria and Tasmania which is like an epicentre for plant-based pharmaceuticals and high-quality produce,” he said.
“We have outdoor and semi-protected crops with good soil and even in Tasmania over summer our crops are just growing so well.”
“The quality of the product is similar if not better than these controlled environments because we’re growing it as nature intended. We keep improving by continuing to research and implement the best genetics.
ECS’s Tasmanian production facility is going into its maiden planting this year.
Keach said the company has a strong sales team in both Australia and Europe to capitalise on growing demand.
“We have a very capable sales team both in Australia and Europe who are reaching all our key milestones,” he said.
He said the company was gaining a reputation for providing quality medicinal cannabis and hemp products at affordable prices.
“At ECS we are passionate about bringing affordable medicinal cannabis products to patients and develop valuable low-cost production IP for this purpose,” he said.
“We haven’t reinvented the wheel and are just doing it in a very considered way to become a global leader in the production of medicinal cannabis and hemp products.”
Supermarket giants Coles and Woolworths are also stocking ECS’s Extra Virgin Tasmanian Hemp Seed Oil in their supermarkets.
Hemp seed oil is becoming popular amongst consumers as a more environmentally and ecologically sustainable source of Omega 3.
Designed to be used as a healthy, versatile oil for cooking, baking salads and smoothies, it has also been recognised for its anti-inflammatory and anti-aging properties
At the time of writing the ECS share price was up 2.5% to 4 cents.
This article was developed in collaboration with ECS Botanics, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.