The Advance NanoTek Ltd (ASX: ANO) share price is pushing higher on Friday after the release of a sales update.
At the time of writing, the advanced materials company's shares are up 4% to $4.80.
What did Advance NanoTek announce?
This morning the company revealed that it has experienced an improvement in sales in the US over the last few months.
This follows a difficult period where demand for sunscreen ingredients dropped off a cliff because of the pandemic.
According to the release, the company has been informed by its US distributor that over 50% of its original 180T stock holdings in XP powder has been sold in the past four months.
In addition to this, the distributor intends to start ordering new stocks of dispersions in December.
Things aren't quite as positive in Europe, with new orders down materially compared to a year earlier. For the five months to 30 November, European new orders are down 55% on the prior corresponding period.
Management advised that this is a consequence of restrictions relating to the second and third waves in key markets on the continent.
What about the future?
The company is hoping to get a boost in the second half from manufacturing sunscreens on behalf of companies that lack the necessary equipment to manufacture sunscreens using its ZinClear XP powders and dispersions.
This follows its recent investment in its own manufacturing facility. However, this remains subject to TGA approval, which is expected in February or March.
Outlook.
Management continues to expect its profits to be down significantly in the first half, with only a small profit result being forecast.
However, it remains hopeful for a stronger second half as demand picks up.
It commented: "We are optimistic of a much improved profit result for the second half FY21. ANO already has stock in US and Europe to meet the anticipated increase in demand for products, with further shipments to continue throughout December."
