Blis cuts profit, revenue forecasts for 2017 after customers reduce inventory

Monday 20th February 2017

Blis Technologies has cut its profit and revenue guidance after a change in customer buying patterns, though still expects to post its first annual profit since listing 16 years ago. The shares fell.

The company doesn't expect to meet previous guidance of pre-tax profit exceeding $700,000 for the year ending March 31, with forecast total trading revenue down significantly for February and March, it said in a statement.

"The reduction is due to changes in buying patterns by three major customers to reduce their product inventory compared with what has been forecast," Blis said. "For two cases, this is a result of change of ownership. It is important to note that the changes do not reflect any change in underlying customer demand but instead reflect changes in timing of purchases by these customers."

Blis was set up to commercialise probiotic bacteria for use in consumer products for oral health, colds and flu and is focused on managing growth and continuing its strategy of securing regulatory approvals market by market. It first listed in 2001.

The company also said it will recognise $1.3 million in deferred income tax assets this year, and expects trading revenue around $6.5 million for the year. In November 2016, it turned to a first-half profit of $428,00 with sales at $3.8 million. Earlier that year, it projected 2017 revenue of $8 million, generating earnings before tax of more than $700,000. It paid no tax in the first half.

The shares last traded at 4.5 cents, down 8.2 percent today, and have gained 55 percent in the past 12 months.

BusinessDesk.co.nz

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