Blis Technologies narrowed its first-half loss and continues to expect a pre-tax profit for the full year as revenue ticks higher.
The Dunedin-based company, set up to commercialise probiotic bacteria for use in consumer products for oral health, colds and flu, reported a pre-tax loss of $500,000 in the six months to Sept .30, versus a loss of $1.2 million in the same period a year earlier. Its loss before interest, tax, depreciation and amortization was $248,000.
Revenues, however, lifted 47 percent to $3.1 million, with all regions and channels reporting growth. No tax was payable and no dividend will be paid, it said.
“The first half year has seen good growth in revenue across all regions compared with the same period last year. With the second half year of sales aligning with the northern hemisphere winter and new customer/ market opportunities, including the first supply for an expanded Australia launch, we reaffirm our existing market guidance,” it said.
The company is expecting revenue “in excess” of $7 million, ebitda of more than $600,000 and a “small net surplus before tax” for the year ending March 31.
The company noted Australasian sales grew by 44 percent to $697,000. The new relationship with Radiant Health as the distributor within the New Zealand pharmacy channel has been in operation since March with positive results in sales growth. New Zealand-based web sales have also increased. Its Australia sales have been relatively small while it prepares for an expanded complementary medicine launch in the Australian market with its distribution partner iNova late in this financial year.
In Europe, sales rose 28 percent to $1.3 million, partly due to a recovery of sales in Poland. Products were also launched in Denmark, Belgium and the Netherlands. North American ingredients sales increased 41 percent to $437,000, it said.
In Asia, sales more than doubled to $487,000, largely due to a return to regular ordering in Japan.
“China remains challenging and we are focusing our attention towards establishing cross-border e-commerce opportunities for our Blis-branded product range to complement future China domestic opportunities,” it said.
The stock last traded at 1.6 cents and has fallen about 6 percent this year.