Blis reports first-half net loss as revenues tumble

Blis Technologies reported a net loss in the first half as trading revenue tumbled, in particular in its North American market, but is optimistic of an improvement in the second half as sales normalise.

Blis reported a deficit of $1.2 million in the six months ended Sept. 30, from a profit of $428,000 a year earlier. Sales at the Dunedin-based company fell 46 percent to $2.1 million as several customers opted to run down stock levels through northern hemisphere summer months and because of long lead times with new customer initiatives, delays in regulatory approval and limited resources for targeting accelerated growth opportunities, Blis said in a statement.

Blis, set up to commercialise probiotic bacteria for use in consumer products for oral health, colds and flu, operates in Australasia, Asia, Europe and North America. Its Australasian sales of $484,000 were $193,000 lower on the year while sales in Europe were $33,000 higher at $1 million. Sales in Asia fell $716,000 to $220,000 on the year, largely due to a run-down of stock following a pipeline build for a new product launch in Japan in the first half of the prior year, it said.

However, "North American ingredients sales is where the greatest impact is seen" with an $863,000 decrease in sales during the first half of the current financial year to $310,000 due to a change in buying patterns and the rundown of stock levels over the northern hemisphere summer, it said. In that market, however, "we have seen recent confirmation of new product launch plans which are indicative of a recovery in the second half of the current financial year," it said.

In July it said it was expecting to report a maiden profit in the current financial year. It offered no full-year guidance in today's report but said while the first half was below expectations "the board anticipates an improvement in the second half of the financial year ending March 31, 2018." It said contributors include a move into the peak sales period for its BLIS K12-based products over the northern hemisphere winter, new market and new customer launches in several markets and a return to normal ordering patterns following a correction in stock holding within the supply chain.

The stock last traded at 2 cents and is down 57 percent over the past 12 months.

(BusinessDesk)