Key Highlights

  • Operating cash flow was $243K in Q1 FY27, the fifth consecutive positive quarter, or $463K excluding the timing effect of the ATO’s payday super transition.
  • Sales rose 13.1% on the prior quarter to $5.49 million but were 3.5% below the prior corresponding period.
  • Branded B2C sales were $3.91 million, up 23.9% year on year and about 71% of quarterly sales.
  • Quarter-end cash was $1.77 million, with undrawn loan facilities of $2.72 million.

ECS Botanics Holdings Ltd (ASX:ECS), an EU GMP certified medicinal cannabis products company, released its activities and cash flow update for the quarter ended 30 September 2026 (Q1 FY27) on 19 October 2026. The update covered cash flow, sales by channel, new international agreements and funding.

Cash flow and sales

Operating cash flow was $243K from customer receipts of $5.26 million, up 3.1% from $5.10 million in the June quarter and broadly consistent with $5.36 million in the prior corresponding period. Reported operating cash flow rose 71% from $142K in Q1 FY26. Excluding the timing impact of the ATO’s transition to payday super, normalised operating cash flow would have been $463K, a 226% increase on the prior corresponding period.

Total sales were $5.49 million, up 13.1% from $4.85 million in the June quarter and 3.5% below the prior corresponding period. ECS attributed the year-on-year decline to a reduced contribution from lower-margin B2B channels, partly offset by branded B2C growth. The strategy is to raise the contribution from ECS’s own product portfolio, capture a greater share of the downstream value chain and reduce reliance on lower-margin wholesale flower markets.

Branded and product performance

Branded B2C sales were $3.91 million, up 13.5% on the prior quarter and 23.9% on the prior corresponding period, representing about 71% of total sales, and up from $0.36 million in Q1 FY25. B2B sales were $1.58 million, up 12.1% on the prior quarter but 37.7% below the prior corresponding period. ECS maintains established domestic and international B2B relationships, with selected export markets expected to contribute an increasing share of the channel over time. OzSun flower sales rose 44.5% year on year and 18.2% on the prior quarter to $1.33 million. AVANI capsule sales rose 35.7% year on year, with VESIsorb infused products representing 52.6% of those sales.

The company said its tracked sales increased 11.9% on the prior quarter against a 1.9% decline in the broader tracked market, based on industry data, and that branded B2C sales are up 50% over the 12 months to September.

International agreements

ECS executed a Distribution and Manufacturing Agreement with Curaleaf Laboratories to launch six ECS-branded Australian-grown flower products in the UK, with initial supply targeted for November 2026. It also received regulatory approval for its first flower registration in Poland, enabling commercial supply to customer Koyi, with the first supply order expected in Q2 FY27.

Investing, financing and funding position

During the quarter ECS invested $33K in property, plant and equipment. Net financing cash outflow was $141K, made up of $142K of borrowing proceeds and $283K of repayments. Closing cash increased from $1.70 million at 30 June 2026 to $1.77 million at 30 September 2026. With undrawn corporate loan facilities of $2.72 million, total available funding was about $4.49 million.