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- Zinc oxide manufacture Advance NanoTek (ANO) is expecting its 2021 financial year first-half sales to be lower than the 2020 financial year
- The company has been experiencing delays in orders due to the significant travel restrictions caused by the second and third waves of COVID-19 in Europe and the United States
- NanoTek’s distributors are also destocking due to the company offering much shorter delivery times
- However, the company said distributors do believe sales in the third quarter should improve as customers are gearing up for next season
- Just before market close, Advance NanoTek is down 10.9 per cent and is selling shares for $3.36 per share
Zinc oxide manufacture Advance NanoTek (ANO) is expecting its 2021 financial year (FY21) first-half sales to be lower than the 2020 financial year (FY20).
The company has been experiencing delays in orders due to the significant travel restrictions caused by the second and third waves of COVID-19 in Europe and the United States.
Advance NanoTek even said they have distributors are destocking due to the company offering much shorter delivery times.
However, the company has said distributors do believe sales in the third quarter should improve as customers are gearing up for next season.
‘As a consequence of these updated sales forecasts, we can no longer say that the first half of FY21 will be an improvement on the first half of FY20 and are no longer able to predict FY21 results because of the uncertainty of COVID-19,” the company said.
“Nevertheless, the board is working on a number of initiatives to diversify our product offerings, increase our distribution network and prepare the company for anticipated continuous significant increase in demand for zinc oxide over the next 3 years,” it added.
On a more positive note, the company said its Alusion sales are tracking significantly in excess of last year.
Zinc oxide is used to treat or prevent minor skin irritations such as burns, cuts, and diaper rash. It can also be used as a sunscreen.
Just before market close, Advance NanoTek is down 10.9 per cent and is selling shares for $3.36 per share at 3:55 pm AEST.
