ECS Botanics (ASX:ECS) shares move up on revenue update

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ECS Botanics (ASX:ECS) shares move up on revenue update

Representative image of medicinal hemp

Highlights

  • ECS Botanics share price has moved up on ASX.
  • ASX:ECS has hit a record quarterly revenue number.
  • Here’s why its upward trajectory is to continue in FY-22.

Industrial Hemp and medicinal cannabis company ECS Botanics Holdings Ltd (ASX:ECS) has reported significant growth of 123% in quarterly revenue for the quarter ending September 2021. The  growth trend in revenues is underpinned by a demand surge and converted into several supply agreements for ECS.

What does ECS Botanics do?

It is a medicinal hemp business-owning farms and medicinal cannabis facility in Tasmania and Victoria. It is into cultivation, processing, manufacturing and sale of medicinal cannabis and hemp. It follows the EU GMP standards of production and has the necessary licences for wholesale extract, final dose and premium dry flower markets. ECS focuses on scale and low-cost production while maintaining product quality.

More on ECS’s quarterly revenue trend

  • ECS’s revenue for the September quarter is up 123% on the previous quarter (Q4 FY2021).
  • It is also a 616% growth over revenue of Q1 FY2021.
  • The significant rise is driven by medicinal cannabis and hemp product sales in the domestic market.
  • ECS Botanics has also recently secured several supply agreements with local and international medicinal cannabis companies.
  • It plans to plant 4,000 kilograms of medicinal cannabis in the coming months, to meet increased demand.
  • ECS is also working on cultivation activities in Tasmania and Victoria.
  • It is thus, confident of maintaining the upward trajectory in revenue in the coming quarters.
  • Meanwhile, the current sales are being filled by the company’s existing medicinal cannabis stock.

On ASX, ECS shares have moved up today and are trading at AU$0.041 per share.

Bottom line

ECS aims to make medicinal cannabis affordable to patients; a ramping up of operations to meet demand is to drive further sales growth. With a focus on revenue growth, ECS seems to be moving towards achieving a bigger production scale.

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