Company Interview / ECS's high on cash and planning more B2C

Key points:

ECS Botanics (ASX:ECS) reports cash flow positive quarter and 43% share price risePivot to B2C and in-house brands credited for improved margins and future growthNew AVANI AVA wellness range and THC gummies drive product expansionCompany plans Germany market launch and maintains strong cash reserves

ECS Botanics (ASX:ECS) achieves a second consecutive cash flow positive quarter, boosted by a 43% surge in share price as business-to-consumer (B2C) cannabis sales gain momentum. Nan-Maree Schoerie highlights a significant pivot from a business-to-business (B2B) model to focusing on in-house brands, a move prompted by the influx of imported cannabis products in Australia. This strategic shift is credited with improving margins and providing greater control over product quality and the customer experience.

Schoerie states that cost reduction has been a major focus, with staff and manufacturing expenses trimmed and expansion projects remaining on track. The launch of the new women’s wellness brand, AVANI AVA, is expected to provide additional growth, with strong reception from doctors and potential customers. THC gummies have entered the market, further expanding the company’s product range. Schoerie emphasises that the investments needed to support these initiatives are now complete, and cash reserves—including both debt and equity—are sufficient, with no immediate capital raise planned.

International expansion remains a priority, with plans to launch ECS Botanics’ own brands in the German market. Schoerie indicates that while European competition is increasing, the model proven in Australia is expected to deliver further growth abroad.