Zoono Group Limited (ASX: ZNO) today announced that it has entered into an agreement with Midas Pharma GmbH in Ingelheim, Germany. The agreement aims to bring both parties together for sales and distribution in the EU and selected global markets.
Midas Pharma is a globally reputed pharmaceutical company with robust sales and distribution channels across the globe in the healthcare and pharmaceutical sectors. The agreement will help Zoono to move towards its ambition to develop a global B2B business.
Zoono’s management is confident that with time more international opportunities may come-up and its B2B business can become a significant contributor to its overall financial performance in coming years.
In a previous update, the company had announced that it had instigated legal action against Stayzon Retail Ventures Pty Limited (“Stayzon”) and MCS Capital Partners Pty Ltd. The primary objective behind the proceeding was to stop Stayzon from engaging in conduct which is believed to be deceptive and misleading in the context of Zoono’s products and trade claims. The company doesn’t expect the liquidation of Stayzon to have any financial impact on it.
In its USA operation, CVS Pharmacy commenced stocking two new products, Zoono ULTRA, and Zoono Wound Cleanser. ZNO reported that it has received orders for its Zoono’s surface product from Visiting Nurses Association New Jersey to maintain the hygiene of their tablets and cell phones.
In its Canada operation, the company was featured on morning television in Canada. It is currently negotiating with many distributors to expand its network.
In its UK/EU operations, the company made its first product sales to a UK NHS Hospital. Several distribution agreements are expected to be executed by the end of Q3.
In India/Middle East operations, the market is showing traction for Zoono products.
In the Asia Pacific, it is finding good scope in the Korean market.
In its half-yearly financial report ended on December 31, 2018, revenue from ordinary activities decreased by 64% from NZ$1,962,039 in H1FY18 to NZ$702,572 in H1FY19. This was due to the lack of orders for the distributors.
Its Gross profit margin stood at 40.9% in H1FY19 as compared to 74% in the previous half year period. This was due to lower operating revenues, increase in freight costs transferring stock to the UK and transferring stock back from China, as well as increased external storage costs with the increased levels of stock held and the mix of products sold which decreased the margins.
Its net profit after tax (NPAT) attributable to members decreased by 285% from NZ$746,566 in H1FY18 to negative NZ$1,377,645 in H1FY19. Due to subdued bottom-line performance, and the board of directors did not declare the dividend for the period.
On stock information, Zoono Group’s share last traded at $0.12 up 41.176% (As on March 15, 2019) with the market capitalization of ~$13.86 Mn. Its last reported loss per share was at 0.012 AUD. The stock opened at $0.087. It made day’s high of $0.120 and day’s low of $0.087. Its average daily volume stood at 263,805. Its 52 week-High has been reported at $0.120. Its absolute return for five years, one year, and three months are -88.67%, -68.52%, and 2.41% respectively (As on March 14, 2019).
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