Zoono (ASX:ZNO) share price slumps 16% on quarterly update

Despite some positive advancements, shareholders continued the selling pressure on Zoono shares today.

| More on:
A woman wearing glasses peers closely at something, ready to spray antimicrobial treatment.

Image source: Getty Images

The Zoono Group Ltd (ASX: ZNO) share price slipped into the red in today’s session. The dip arrives as Zoono announced its progress for the quarter.

Let’s comb over the company’s results and highlights in finer detail.

Quick refresher on Zoono

Zoono is a biotechnology company that specialises in environmentally-friendly antimicrobial products.

Its mission statement centres on providing non-toxic and sustainable germ protection to individuals across the globe.

Zoono has a market capitalisation of $108 million.

Zoono’s quarterly results

The company has realised $28.8 million in cash receipts for the full year. This includes unaudited sales revenue of $6.6 million for the quarter.

Zoono also announced a suite of new sales and distribution agreements that are now in place. These include sales and distribution agreements in France, Russia, China and India.

For instance, Zoono is now selling to “several French multinational customers,” and it has signed three new distribution agreements in China.

Furthermore, a new distributor in India placed a large 100,000-litre order, and “sales have been particularly strong in the public sector” in Russia.

Zoono exited the quarter with $7.4 million in cash and receivables. All positive signs for the Zoono share price.

Additional takeouts driving the Zoono share price

In addition to these agreements, Zoono announced a selection of “new business opportunities” in the report.

To illustrate, Zoono described advancements in “mould remediation” with a partner in South Africa. This activity aims to “prevent black mould growing on cardboard packaging”.

Moreover, Zoono UK has started a strategic partnership with a third party in order to develop “a unique delivery system” for its Zoono Z-71 microbe shield.

The company is testing this system using “existing air conditioning infrastructure” in large buildings.

The proprietary process, which is owned by the third party, converts Zoono’s solution into a gas.

As per the company, the gas “is then pumped throughout the building” via the air con. Because the “gasified Zoono is heavier than air, it settles on (and treats) the surface” it lands on.

Again on the the Z-71 shield, it displayed a “99.99% efficacy against [preventing] Coronavirus MHV-3 after 30 days” in trials conducted on the product in Brazil.

Despite these advancements, shareholders continued the selling pressure on Zoono shares today.

Zoono shares closed the day at 66 cents apiece, a 15.92% drop into the red from the market open.

Zoono share price snapshot

The Zoono share price has posted a year-to-date loss of nearly 50%, extending the previous 12 month’s loss of 70%.

Both of these returns have lagged the S&P/ASX 200 Index (ASX: XJO) return of ~23% over the past year.

Should you invest $1,000 in Zoono Group right now?

Before you consider Zoono Group, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Zoono Group wasn't one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News