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 market update, released on 22 May 2025:

Revenue and earnings growth

BLIS Technologies is pleased to report revenue and earnings growth for the year ended 31 March 2025 (FY25). The financial year was marked by disciplined execution of our strategic plan, operational momentum, and addressing unexpected intellectual property issues. We have delivered on our key performance commitments, strengthened our commercial foundations, and continued to build shareholder value in a challenging and dynamic global environment.

Revenue for FY25 was $12.6m, a 10% increase on the prior year. This was underpinned by solid growth across our finished product sales and modest growth in our Business to Business revenue. Higher royalty revenue was partially offset by some softness in ingredient revenue from European customers. Growth was achieved in other ingredient markets.

EBITDA for the year was $1.0m, a 26% improvement on the prior year (FY24 $0.8m) and Net Profit of $0.8m (FY24 $0.6m). The EBITDA result is above guidance of between $0.6m and $0.8m, reflecting revenue in line with expectations but reduced expenditure attributed to China regulators taking longer than expected to complete their review.

While this year’s financial results were positive considerable time was spent during the year dealing with unexpected patent issues.