Blis Technologies forecasts first profit of more than $700k in 2017

Thursday 28th July 2016

Blis Technologies, the biotechnology firm, expects to post a profit of at least $700,000 for the 2017 financial year.

In May, the company said it expected to report its first annual profit in the year to March 31, 2017. After market close today, the Dunedin-based company said it expects revenue of at least $8 million in that year, and profit in excess of $700,000.

Its unaudited first-quarter results support the guidance, with trading revenues of $1.95 million and earnings before interest, taxation, depreciation and amortisation of $340,000, Blis said.

Blis was set up to commercialise probiotic bacteria for use in consumer products for oral health, colds and flu and is focused on managing its growth and continuing its strategy of securing regulatory approvals market by market.

Chief executive Brian Watson said the company "has reached a critical point where the revenue being generated allows it to cover its basic cost structure."

“Blis is riding a wave of interest created by greater consumer understanding of the health benefits of advanced probiotics," Watson said. “We have products that are relevant across a range of common health concerns and across all life stages and we need to capture within the Blis brand more of the value we create.”

In May, the company reported a smaller loss of $816,000 in the year ended March 31 on revenue of $5.6 million. Blis listed 15 years ago and has accumulated losses of $33.3 million.

The shares last traded at 5.1 cents, down 13.6 percent today, and have gained 78.8 percent this year. Its annual meeting is to be held tomorrow.

BusinessDesk.co.nz

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