Not tonight Josephine !!
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Not tonight Josephine !!
Announcement out:
Announcements (usx.co.nz)
Highlights
- Sales rise 24% to $21.5m with strong international demand for nutraceutical ingredients.
- EBITDA rises 23% to $6.7m despite margins being impacted by COVID-19 disruptions.
- Net profit before tax rises 30% to $5.2m.
- Expansion programme continues with the construction of new manufacturing facility at Rolleston, Christchurch underway.
- Cash reserves lifted post balance date with $14m equity placement to Cibus Fund.
- COVID-19 disruptions to global supply chains and the stronger NZD continue to dilute performance in the first quarter of FY2021, however international demand and growth remains strong.
Christchurch biotechnology company PharmaZen (USX.PAZ) has today announced a strong rise in full year revenue and earnings amid strengthening international demand for its portfolio of nutritional supplement ingredients.
Revenue for the year ended 31 December 2020 increased 24% to $21.5m from $17.3m in 2019, while pre-tax profit increased 30% to $5.2m from $4.0m and EBITDA increased 23% to $6.7m from $5.4m. All figures are unaudited.
Board Chairman Ken Fergus said although EBITDA was slightly lower than initial expectations, the result represented a significant achievement considering the challenges the business continues to face as a consequence of COVID-19 and the stronger New Zealand dollar in the last half of the year.
“We are delighted with the progress we have made. Despite the considerable disruptions of the pandemic and associated impact on global supply chains, we have significantly expanded our ingredients business and grown both revenue and earnings. We have also continued to develop the capacity of the business in line with our goals to meet the significant global growth in demand we are experiencing.
“Meanwhile, in January and in a strong endorsement of our business model and strategy, we introduced a new strategic investor Cibus Oscar Limited to the business. The partnership has brought in $14m of new capital to help accelerate our growth. It has also given us access to the considerable expertise of ADM Capital’s Cibus Fund, a specialist international food and agriculture investor.
“Were it not for the pandemic we believe we would have delivered a better result. Disruptions to travel and the global supply chains have delayed manufacture and delivery of key product lines. These pressures have been compounded by the challenges of sourcing overseas engineers to our manufacturing sites.”
Managing Director Craig McIntosh said the company’s capital investment programme including the development of a new 3,000sq m factory at Tawhiri, Rolleston was proceeding well. However, the global supply chain, travel and freight restrictions could push out the planned commissioning date of August 2021. Meanwhile the construction of an additional 3,000sq m factory on a neighbouring site in Rolleston is due to commence shortly. This investment, along with a newly built premises on its original Hillsborough site, will significantly boost the company’s freeze drying capacity.
“This increase in capacity will go from the current two freeze dryers to three within the next two months, with a further four planned to be installed over the next year. This will enable us to progress both the consumer and pet food ranges.
“As with previous expansion builds, existing operations are always impacted to some extent but we minimise these disruptions with workarounds. Overall capacity in both the final quarter of FY2020 and the first quarter of FY2021 have been reduced, however, the company remains well positioned to build on its record of strong growth,” Mr McIntosh said.
“Demand for international nutraceuticals markets remains strong and we have seen nothing in the current environment to challenge our long-term confidence in the market.
“Despite the constraints of the past year PharmaZen has delivered a strong result for investors. As we look forward to a time when COVID-19 vaccinations have been rolled out domestically and across our major markets, we anticipate a gradual return to more normal trading conditions.
“We look forward to providing an update with our half year result in August.”
Further information:
Craig McIntosh
Managing Director PharmaZen
+64 21 372 069
Can not ask for better.
Well done PAZ team, I for one look forward to this years AGM, it will be interesting to see if these latest numbers are reflected into the share price.
Excellent result in very challenging conditions. PAZ has excellent prospects for strong growth in the years ahead. Happy holder.
Well done team PAZ. I think we can all be very satisfied with this and not surprising we will see some product delivery and factory building delays, given the extra ordinary World situation and challenges with transport and getting specialists in to setup the equipment.
Onwards & upwards.
Classic long term growth story. If one thinks about where this will be 5 years from now listed on the NZX and one also considers the amount of new production capacity coming on stream in the next two years, the ol Percy special saying of "well positioned" springs readily to mind :)