Record Harvest and Expansion of Premium B2C Product Line

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Stock ECS Botanics Holdings Ltd (ECS.ASX)
Release Time 16 May 2025, 9:53 a.m.
Price Sensitive Yes
 Record Harvest and Expansion of Premium B2C Product Line
Key Points
  • ECS set to exceed FY24 production by 50% in FY25, with annual output expected to exceed 9.8 tonnes
  • FY25 outdoor harvest expected to reach 6 tonnes, including a record 2.6 tonnes of higher-value premium dried flower
  • Protective Cropping Enclosures (PCEs) forecast to deliver a record 3.8 tonnes, including over 2.5 tonnes of A-grade trimmed dried flower
Full Summary

ECS Botanics Holdings Ltd (ASX: ECS), a leading medicinal cannabis company, is poised to deliver a record-breaking harvest and is pleased to reaffirm confidence in its strategic direction, following a year of rapid operational progress and strong market demand. The Company notes recent market volatility and reaffirms that there have been no material developments not previously disclosed. With record production, new product launches and expanding global distribution, ECS is well-positioned to continue its growth trajectory and deliver value to shareholders. FY25 marks ECS's most successful cultivation season to date, both in volume and quality. The 6-tonne outdoor harvest (a 50% increase on FY24) is primarily A-grade dried flower, with minimal biomass. This shift reflects ECS's ongoing productivity gains and strategic quality focus. The remaining B-grade flower will be sold under ECS's OzSun value brand. Production costs are significantly lower than in prior years, reinforcing the season's strong performance and the benefit of the Company's ongoing productivity focus. The new PCEs are delivering exceptional results, with A-grade output expected to be 40% higher than last year. To enhance quality control and processing efficiency, ECS is investing in a refrigerated curing room, additional drying space, and a clean room for packaging. In June 2025, ECS will release four premium Terphogz strains in Australia, supporting the Company's strategic shift towards expanding B2C sales. ECS is also collaborating with a second iconic Californian brand with a plan to launch into the same markets in Q1 FY26.

Guidance

ECS is set to exceed FY24 production by 50% in FY25, with annual output expected to exceed 9.8 tonnes at significantly lower production costs. The FY25 outdoor harvest is expected to reach 6 tonnes, including a record 2.6 tonnes of higher-value premium dried flower. The Protective Cropping Enclosures (PCEs) are forecast to deliver a record 3.8 tonnes, including over 2.5 tonnes of A-grade trimmed dried flower by 30 June 2025.

Outlook

Sales and cash receipts are forecast to continue to increase steadily this quarter on the back of continued growth in B2C sales, the release of additional VESIsorb® products, as well as an increase in B2B sales achieved through ECS's ability to provide premium flower to the market. The Company remains on track to return to cash flow positive status during calendar year 2025, with production, sales and strategic partnerships advancing strongly.