ECS Botanics to Boost FY25 Output by 50%, Targets Positive Cash Flow

Record Harvest and Operational Efficiency

ECS Botanics Holdings Ltd (ASX: ECS) has announced a landmark cultivation season for FY25, projecting a 50% increase in production over the previous year. The company expects to harvest more than 9.8 tonnes of medicinal cannabis, with a significant shift towards higher-value A-grade dried flower. This marks a strategic evolution from prior years when outdoor crops were mainly used for biomass and medicinal oils.

The outdoor harvest alone is forecasted at 6 tonnes, including a record 2.6 tonnes of premium dried flower, reflecting ECS’s focus on quality and productivity. Additionally, Protective Cropping Enclosures (PCEs) are delivering exceptional results, with a 40% increase in A-grade flower output compared to last year. These innovations are driving down production costs and improving margins, positioning ECS strongly in a competitive market.

Strategic Expansion with Terphogz Brand

In a significant move to broaden its consumer reach, ECS is launching four premium cannabis strains under the Terphogz brand in Australia this June. The strains, The Original Z, Zruntz, Cherry Rope, and RS-40, are the result of an eight-year licensing and marketing agreement with the renowned Californian breeder group Terphogz. This partnership underscores ECS’s strategic pivot towards expanding its business-to-consumer (B2C) segment.

Beyond Australia, ECS’s UK partner, Hologram, is advancing regulatory approvals to introduce these products to the UK market by August 2025, with Germany expected to follow later in the year. The company is also collaborating with another iconic Californian brand, aiming for further product launches in early FY26, signaling a robust international growth strategy.

Financial Outlook and Infrastructure Investments

ECS remains confident in achieving positive cash flow within calendar year 2025, driven by increased sales across both B2C and business-to-business (B2B) channels. The company is also investing in infrastructure to support quality control and processing efficiency, including refrigerated curing rooms, additional drying space, and clean packaging facilities. These enhancements, funded through existing cash reserves and an expanded loan facility with NAB, are expected to further improve product quality and operational scalability.

Overall, ECS Botanics is capitalizing on its cultivation advancements, premium product launches, and strategic partnerships to solidify its position as a leading medicinal cannabis provider in Australia and beyond.