Thursday 19th November 2020
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In the first six months of the 2021 financial year Blis Technologies has delivered solid revenue growth and profitability despite challenging selling conditions in all markets as a result of the effects of the COVID-19 pandemic.
Trading revenue for the six months ended 30 September 2020 (HY21) increased $0.6m (+11%) to $5.8m compared to the same period in the prior financial year. Of note is the strong revenue growth in BLIS® branded finished products being achieved online through our own website and on the Amazon US platform.
Total expenses of $4.9m were up 8% on the prior period. The increase is principally due to higher investment in the R & D pipeline together with increased market development initiatives across eCommerce channels in particular on Amazon in the USA.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased $0.2m (+23%) to $1.3m.
Net Profit for the period was $1.1m, an increase of $0.3m (+41%).
As at 30 September 2020, the Company held a net working capital position of $4.8m. The net cashflows from operating activities are a $0.5m inflow resulting in a cash balance as at 30 September 2020 of $3.1m.
The COVID pandemic has impacted our business in a variety of ways, however we have been able to maintain growth and continue to progress of both new market and R&D pipeline opportunities that set us up for a strong second half for FY21 and beyond. Consumer demand remains strong however the channel purchase preference has shifted strongly to online. Our customer base and our own BLIS® branded finished products are well positioned for this change in buyer behaviour.
The second half of the FY21 year will see the Canadian market launch as well as execution of key elements of our CBEC channel focus including the launch of our Alibaba Tmall flagship store. We are excited by the early success of our new UltraBLIS™ product and will launch the product on Amazon and into CBEC prior to March 2021.
Based on continued growth in product sales, investment into new markets and support of the R&D pipeline we reaffirm our guidance of sustained profitable growth while maintaining an EBITDA similar to the $2.1m earned in FY20.
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