Zoono Group (ASX:ZNO) swings into profitability on sanitiser demand

• Biotech company Zoono Group (ZNO) has swung into profitability during the 2020 financial year
• The hand sanitiser producer posted NZ$20.4 million (around A$18.64 million) in profits — a huge margin next to FY19’s NZ$2.4 million (about A$2.19 million) loss
• In addition, the company’s total revenue for the 2020 financial year hit NZ$38.3 million (around A$35 million) — up NZ$36.5 million (approximately A$33 million) compared to last year
• The sales increase comes amid heightened demand for Zoono’s antimicrobial products due to COVID-19
• Meanwhile, Zoono’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) surged 944.5 per cent to NZ$20.6 million (roughly A$18 million) — almost ten times FY19’s NZ$2.4 million in earnings
• Managing Director Paul Hyslop says the second half of the year was outstanding and is pleased with his team for keeping up with the demand
• Zoono is up 4.80 per cent on the market this morning and is trading for $2.62 per share

Biotech company Zoono Group (ZNO) has swung into profitability during the 2020 financial year.

The hand sanitiser producer posted NZ$20.4 million (around A$18.64 million) in profits — a huge margin next to FY19’s NZ$2.4 million (about A$2.19 million) loss.

In addition, the company’s total revenue for the 2020 financial year hit NZ$38.3 million (around A$35 million) — up NZ$36.5 million (approximately A$33 million) compared to last year.

Meanwhile, Zoono’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) surged 944.5 per cent to NZ$20.6 million (roughly A$18 million) — almost ten times FY19’s NZ$2.4 million in earnings.

The sales increase comes amid heightened demand for Zoono’s antimicrobial products due to COVID-19. ZNO says these sanitisers have been supported by over 100 independent laboratory results.

Managing Director Paul Hyslop says the second half of the year was outstanding and is pleased with his team for keeping up with the demand.

“Strong sales came from Australia and New Zealand in both the business-to-business (B2B) and business-to-consumer (B2C) markets. U.K. and Europe continue to deliver and, in Asia and China, we are making good progress,” he said.

“We have also recently bought back the U.S. distributor and will be seeking to mirror the success of the U.K. operations in this region,” he added.

In May, the company boosted production and order fulfilment capacity to keep up with orders for its hand and surface sanitisers.

Zoono is also making progress in the Middle East and Africa with several new distribution agreements.

Based on the FY20 results, ZNO will pay a maiden dividend of NZ$0.032 (around A$0.029) per share on September 21.

Zoono is up 4.80 per cent on the market this morning and is trading for $2.62 per share at 11:00 am AEST.