Blis Technologies says customer changes still impacting orders

Blis Technologies says regulatory processes surrounding ownership changes in a key customer are continuing to impact orders but it remains upbeat about its market opportunities, particularly in China, and expects to deliver a profit this year.

Earlier this month the Dunedin-based company reported a net loss of $24,000 in the 12 months ended March 31, narrowing from a loss of $816,000 a year earlier when changes to key customer buying patterns impacted sales in the final quarter. The company had forecast a maiden profit. "Reporting a further annual net deficit is disappointing and is the result of lost revenue from delayed orders from key overseas customers," it said.

For two of its customers, this was due to changes in ownership. While it expects these changes to be positive "regulatory processes are delaying finalisation of the shareholder change for one of these customers, impacting orders to date in this financial year," it said.

However, during the current financial year it will continue to invest in growth initiatives "delivering increased turnover and a profit," it said.

The company underscored it had 16 percent revenue growth to $6.5 million in the year to March 31, with growth in Asia, North America and Europe. Its earnings before interest expense, tax, depreciation and amortisation were $585,000 versus an editda loss of $260,000 in the prior year.

Looking ahead, it said new distribution relationships have been progressed within New Zealand and offshore. New market opportunities have been established in the US, Europe and Japan and "in China, we are making good progress with prospective customers who plan to launch in FY2018," it said. The developments "have set us up for sustainable profit growth into the future" as it expects "meaningful sales" from China, expanded market approvals in Australia and new customer relationships globally in the medium term.

Blis was set up to commercialise probiotic bacteria for use in consumer products for oral health, colds and flu and is focused on managing growth and continuing its strategy of securing regulatory approvals market by market. It first listed in 2001.

The shares last traded at 3.1 cents and have fallen 6 percent over the past 12 months.

(BusinessDesk)