- Zinc oxide manufacturer Advance NanoTek (ANO) is expecting its 2020 financial year profit to hit approximately $8.4 million, a 2.5 per cent increase on the company’s 2019 stats
- This forecast is anticipated on an $18 million turnover rate, which is up 46 per cent compared to the 2019 financial year
- Advance’s U.S. distributor has also told the company that sunscreen manufacturing has recommenced
- As a result, sales are expected to return to normal in the short term
- Additionally, the company is expecting to extend its aluminium oxide agreement into 2025
- Advance NanoTek is up 12.2 per cent on the market today, selling shares for $5.26 each
Zinc oxide manufacturer Advance NanoTek (ANO) is expecting its 2020 financial year profit to hit approximately $8.4 million, a 2.5 per cent increase on the company’s 2019 stats.
This forecast is anticipated on an $18 million turnover rate, which is up 46 per cent compared to the 2019 financial year.
Advance’s U.S. distributor has also told the company that sunscreen manufacturing has recommenced.
“We have established stockpiles in a central U.S. logistics facility in order to take advantage of the expected upturn in market conditions,” the company said.
As a result, sales are expected to return to normal in the short term.
Aluminium oxide business
The company is expecting to extend its aluminium oxide agreement into 2025.
Due to contractual arrangements, the board is now able to expand its aluminium oxide business into new markets and improve supply to its existing key customers.
“These developments should also allow Advance to maintain pricing into the foreseeable future or possibly offer volume rebates where needed,” the company said.
While the company says the positive impact on sales from these changes cannot be determined straight away, sales for the aluminium oxide product in FY20 are expected to hit $2 million.
Advance NanoTek is up 12.2 per cent on the market today, selling shares for $5.26 each at 12:07 pm AEST.