Ecofibre Limited (ASX: $EOF) 3Q24 Update and 4C Report

Ecofibre Limited (ASX: $EOF) has reported a total cash balance of $10.4m as of 31 March 2024, including $7.1m group funds and $3.3m EOF Bio. The 3Q24 operating cash outflow was $1.9m, with 3Q24 revenue at $8.1m, up 13% from the prior quarter. The unaudited operating costs (excluding EOF Bio) decreased by 6% from the prior quarter. Ecofibre remains focused on returning the business to positive operating cashflows in the short term, reducing financial risk in the medium term, and is delivering on the four key priorities in its Cash Positive Plan.

Ecofibre's Executive Commentary

Ecofibre Chairman Vanessa Wallace stated, 'During the quarter Ecofibre made progress in delivering its Cash Positive Plan. Our two core businesses delivered positive trading results, reflecting revenue growth and continued strong cost control. 4Q24 will be a critical period for the group. For Ecofibre A.T, key steps include finalising the investment and commissioning the second turf line and starting commercial production of NEOLAST™ yarn. Ananda Health has reset its cost base and will gradually begin to increase its investment in sales and marketing in the coming periods as we drive sales growth in non- CBD as well as our traditional CBD products. For the Corporate team, completing the sale of the Greensboro properties is a priority.'

Ecofibre's 3Q24 Performance and Outlook

Ecofibre's 3Q24 update reflects a positive trajectory with revenue up 13% from the prior quarter and unaudited operating costs (excluding EOF Bio) down by 6%. The company remains focused on its Cash Positive Plan, aiming to achieve positive operating cashflows in the short term and reduce financial risk in the medium term. Ecofibre Advanced Technologies and Ananda Health delivered EBITDA-positive results during the quarter. The company is also focused on reducing operating costs and debt, delivering ongoing revenue growth in Ecofibre Advanced Technologies, and realizing value in EOF-Bio. The outlook for Ecofibre includes finalizing investments, commissioning the second turf line, starting commercial production of NEOLAST™ yarn, and gradually increasing investment in sales and marketing for Ananda Health. Additionally, completing the sale of the Greensboro properties is a priority for the Corporate team.