The Zoono Group Ltd (ASX: ZNO) share price will be on watch when trade opens on the ASX this morning, following the release of its half year earnings for the period ended 31 December 2019 after market close yesterday.
In a separate market release, the global biotech provider also updated the market on its current quarter.
What did Zoono announce for H1 FY20?
The group reported revenue from ordinary activities of NZ$1,714,980, an increase of 144% on the prior corresponding period (pcp). Zoono recorded an after-tax loss of NZ$727,944, compared to an after-tax loss of NZ$1,377,645 in H1 FY19.
Zoono achieved a gross profit of NZ$893,443, which was 52.1% of operating revenue. The group attributes the improved gross profit to higher operating revenues and margins from bulk products sales, compared to the sale of finished product sales.
Operating costs also decreased by NZ$335,184 as a result of a review of all costs across the group.
No final dividend was paid or declared in relation to the year ended 30 June 2019 and no interim dividend will be paid or declared in relation to the half-year ended 31 December 2019.
In terms of operations, Zoono reports that its global offline and online sales continue to increase as brand awareness grows and its new distribution strategy starts to produce results. The group also signed a number of new distributor agreements in the half year in the agriculture, childcare and hotel sectors in China and Vietnam. It also signed an agreement with Apiam Animal Health Ltd (ASX: AHX) (via Zoono Poultry) in Australia and in the United States.
Results for the current quarter
In a separate market release yesterday, Zoono announced revenues (unaudited) for the current quarter (7 weeks only) of NZ$3.5 million, which compares to revenues of NZ$1.715 million for the whole of the first half of FY20.
The company reported that its available cash resources had increased to over NZ$4 million, up more than NZ$1 million since 31 December 2019. Zoono further commented that online sales are now averaging NZ$30,000 to NZ$50,000 per day and the percentage gross margin on sales is also increasing in line with the growth in sales revenues.
Zoono also noted that work is progressing on a number of significant distribution and supply initiatives. Details of these initiatives will be announced to the market once negotiations are concluded.
To keep ahead of the high demand for its products, Zoono is ramping up production and relocating to a substantially larger warehouses and office facilities in early March 2020.
