Blis Technologies Limited Analysis

Overview

Blis is an NZX-listed manufacturer of advanced probiotic strains that enable the delivery of probiotic solutions for specific health targets including throat health, halitosis (bad breath), immune support and teeth and gum health. Combining innovation with evidence-based research has enabled the company to develop a range of products containing two strains of probiotic bacteria - BLIS K12 TM and BLIS M18 TM. Both of these strains occur naturally in the oral cavity however, only around 2% of the population have these healthy bacteria at levels high enough to be effective.

BLIS products have received regulatory approvals for sale throughout New Zealand, Australia, Asia, Europe and the USA. Brand names include ThroatGuard PRO, DailyDefence, TravelProtect, HoneyBlis, FreshBreath and ToothGuard.

Blis probiotics have a significant body of evidence which is constantly growing as more clinical trials are completed. Blis probiotics have been included in more than 40 clinical trials to date.

The company's origins lie in research undertaken by Professor Emeritus John Tagg of the Microbiology Department at the University of Otago in New Zealand who found that Salivaricin B, a substance which acts as a natural antibiotic, controls streptococcal throat infections. Blis Technologies commenced business in August 2000 when it acquired the University's collection of several thousand bacteriocin-producing organisms. It listed on NZX in 2001.

Performance

The following information was extracted from BLIS Technologies Limited's full year results, released on 24 May 2024:

Revenue growth and a return to profitability

In the year to 31 March 2024, Blis Technologies Ltd (Blis) achieved a return to profitability after two years of operating losses. The profit for the year was $0.6m, which was in line with guidance. This result was achieved on revenue of $11.5m, which was 12.6% higher than the previous year.

Revenue growth was achieved in our Business to Business (B2B) segment, with an 18.2% increase in ingredient sales and royalty income. Revenue in the Business to Consumer (B2C) area was affected by cost of living pressures on our customers and as a result revenue was consistent with the previous year. The revenue growth combined with a tight control over costs resulted in an improved trading performance. Net profit after tax for the year of $0.6m compares with a loss of $1.4m in the previous financial year.

This year’s result reflects some early success from the Company’s strategy to focus on achieving revenue growth from global ingredient sales and royalty income, under our B2B strategy. The cash surplus from operations improved to $1.1m. Blis continues to be in a strong financial position with cash and cash equivalents and short term deposits of $8.5m.