- Sanitiser business Zoono Group (ZNO) says it was negatively impacted by COVID-19, tabling a reduced profit of NZ$4.6 million (A$4.41 million)
- That’s a 72.4 per cent drop in net profits after tax year on year, with earnings, revenue and gross profits also falling over 25 per cent in FY21
- ZNO is blaming the results on COVID-19 impacting trading, higher overheads and the stockpiling on hand sanitiser at the outbreak of the pandemic
- Throughout FY22, the company will target more business-to-business sales as the Delta strain of the virus sweeps across the globe
- Shares in ZNO have ended the day down 11.5 per cent to close at 58 cents
Sanitiser business Zoono Group (ZNO) said it was negatively impacted by COVID-19 across FY21, tabling a reduced profit of NZ$4.6 million (A$4.41 million).
That figure represents a 72.4 per cent drop in net profits after tax year on year, with earnings, revenue and gross profits also falling.
Earnings before interest, taxes, depreciation and amortisation was worst affected — dropping 69.6 per cent from NZ$6.3 million (A$6.04 million).
Gross profits fell 43.2 per cent to NZ$16.1 million (A$15.44 million) while revenue dipped 29.2 per cent to NZ$27.1 million (A$25.99 million) at the end of June.
ZNO has blamed the results on the impact COVID-19 had on trading and also pointed to many businesses and customers stockpiling hand sanitiser at the outbreak of the pandemic.
Additionally, Zoono reported higher overheads relating to steep regulatory costs and extra staff while gross profit margin were impacted by higher tariffs.
“The 2021 year, purely from a revenue and profit perspective, was not as good as 2020,” Zoono CEO Paul Hyslop said in the company’s FY21 annual report.
“In April 2020, the company appeared on an Australian morning TV show, at the onset of COVID, and received 34,000 orders within the next 24 hours.
“This avalanche of orders enabled the Company to achieve record revenues for the month of April.
“This was the main difference in the sales revenues across the two years, and many customers over ordered in 2020.”
Going forward, Zoono said it would target more business-to-business transactions, noting it had large stock volumes on hand as the Deltra strain of COVID-19 swept across the globe.
Shares in ZNO have taken a hit following today’s results release, ending the day down 11.5 per cent to close at 58 cents.