Global biotech company, Zoono Group Limited (ASX: ZNO) has progressed various new distribution agreements during 2019 March quarter. Besides that, the company also reported about successful trials and/or testing in various regions over the quarter and it is now undertaking new trials in the Middle East and India, which are showing great potential as new markets.
According to the company’s Managing Director / CEO Paul Hyslop, the company made good progress during the March quarter. The company continued to develop a significant global pipeline of business and it continued to reduce costs by streamlining operations and by transitioning some employees to performance-based remuneration packages.
During the March quarter, the company launched its online sales platform commencing sales direct to the UK and EU and moreover it is now selling online through Amazon Canada and the Australian/NZ website which were upgraded during the quarter.
It is anticipated that the company will launch its online sales platform in Middle East in 2019 May. During the quarter, the company also launched Two new products, Zoono Baby Wipes and Zoono Hand and Body which are now available for online sale.
The company also opened its UK Branch Office at Bury St Edmunds to service UK and EU customers, and it has also signed an agreement with Midas Pharma GmbH for sales and distribution in the EU and other selected global markets.
Midas Pharma is a respected global pharmaceutical partner company and Zoono’s agreement with Midas is an important step forward in its ambition to develop a global B2B business.
During the quarter, the company also received new UK and EU regulatory approvals for direct food contact for both surface and hand products. Moreover, Zoono surface products and hand sanitiser were successfully tested against the Ebola Virus which is very encouraging.
During the quarter, the company’s Product manufacturing and operating costs were down, driven by slightly improved margins. Besides that, the staff costs were also down and administration and corporate costs were significantly lower for the quarter with a focus being on some cost-saving initiative.
The company believes that it is well-funded to execute its strategic growth plan in FY 2019 and beyond. At the end of the March quarter, the Company had NZ$3.7 million cash at bank plus NZ$407,000 in stock, including NZ$216,000 of stock held in the UK warehouse.
The stock traded at a price of $0.098, down by 1.01% during the day’s trade with a market capitalisation of ~$16.17 million as on 17 April 2019. The counter opened the day at $0.100 and touched the day’s low of $0.098 with a daily volume of ~ 13,954. The stock has provided a year till date return of 13.79% & also posted returns of -10.00%, 32% & -13.91% over the past six months, three & one-month period respectively. It had a 52-week high price of $0.270 and touched 52 weeks low of $0.067, with an average volume of ~ 65,053.
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