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- Shares in sanitiser producer Zoono (ZNO) slid this morning on softer customer receipts and cash reserves outlined in its September quarterly
- The healthcare stock released its quarterly report this morning, detailing its performance and financial position since the end of FY20
- Over the September quarter, Zoono brought in NZ$15 million (around A$13.94 million) in customer receipts — down on the June quarter’s NZ$20 million (roughly A$18.59 million) result
- Despite this, Zoono remained cashflow-positive, adding NZ$2.8 million (approximately A$2.6 million) to its balance sheet by the end of September
- At the end of the quarter, the company had almost NZ$7.5 million (about A$6.97 million) in the bank, a decrease on its initial NZ$10.3 million (around A$9.57 million) cash balance
- Following today’s report, Zoono shares dropped 6.39 per cent, worth $1.72 per share
Shares in sanitiser producer Zoono (ZNO) slid this morning on softer customer receipts and cash reserves outlined in its September quarterly.
The healthcare stock released its quarterly report this morning, detailing its performance and financial position since the end of FY20.
Currently, Zoono is working to create a suite of antimicrobial products, including baby wipes, surface and hand sanitisers.
They all centre around the ‘Zoono molecule’, which reportedly bonds to any surface it encounters, eliminating ‘hidden nasties’ like bacteria, fungus, mould and viruses. Zoono’s product range is water-based and created without chemicals, meaning its safe for families and young children to use.
Customer receipts
At the end of September, Zoono brought in just over NZ$15 million (around A$13.94 million) in customer receipts. While the result means Zoono’s operational cashflow stays in the black, it’s still down on last quarter’s NZ$20 million (roughly A$18.59 million) in receipts.
Despite the drop in customer receipts, Zoono maintains sales across Australia and New Zealand are still strong. In today’s quarterly, the healthcare stock stressed that it’s targeting the business-to-business (B2B) market for the foreseeable future, although it’s appointed a digital marketing specialist to help its business-to-consumer (B2C) sales grow.
Overall, ZNO went cashflow-positive by NZ$2.8 million (approximately A$2.6 million) by the end of September. Positively, the company’s manufacturing and operating costs accounted for almost 50 per cent of its customer receipts — slightly less than the June quarter’s result.
Staff, admin and corporate costs set the company back around NZ$2.2 million (about A$2.04 million) in the September quarter, while a further NZ$2.4 million (around A$2.23 million) income tax payment also impacted its cashflow margins.
Zoono also recorded a substantial jump in investment cash outflows over the period. A NZ$302,000 (roughly A$280,680) spend on property, plant and equipment is up more than eightfold on the previous quarter’s result.
Opting to pay a dividend also impacted Zoono’s financial cash flow: the company shed over NZ$5.1 million (approximately A$4.74 million) to pay out its maiden NZ$0.032 (about A$0.030) dividend during the quarter.
Cash reserves
Despite the increased quarterly spend, Zoono still has almost NZ$7.5 million (around A$6.97 million) in the bank.
While that statistic is down on the NZ$10.3 million (approximately A$9.57 million) tabled at the start of the quarter, its still enough to support the company in the years to come, considering it’s cashflow positive.
Following today’s report, Zoono shares dropped 6.39 per cent, worth $1.72 at 1:06 pm AEDT.
