BLT - Blis Technologies

[emearg]

You're not going mad (well, not on this point anyway).
One of the announcements last year specifically stated "not infant formula" or words to that effect.

Yeah Prof Google found the business update from last years AGM that states this:
* Commissioned in September & then approvals sought for export of these products – NOT for infant formula

* Nutritional formulations - in conjunction with NZ businesses for milkbased BLIS formulations for mainly Asian markets

Cheers
Eme

[simla]

From memory didn't Blis say they weren't venturing into the infant market? Milk powder products yes, but not for babies? Not sure exactly where I read that though...

Anybody else recall this? Or am I having a moment?

Yes, but that news said "China infant formula and dairy systems audit". I was referring to this earlier post on Jan 31: http://www.sharetrader.co.nz/showthr...l=1#post458523

"...All manufacturers are now required to have separate approvals for Chinese entry products. .. need the final approvals for export of dairy product formulations."

Obviously I am musing whether we may have to wait a few more weeks for more news.

[simla]

Maybe Blis isn't waiting for a Chinese inspection, but waiting for NZ government resources to inspect for a busy compliance regime? http://www.radionz.co.nz/news/rural/...safety-reforms

"the ministry says the [Chinese] audit will survey only a sample of infant formula and dairy manufacturers". However, "Under China's new rules, all dairy and infant formula manufacturers, as well as cold and dry store operators handling dairy products for export there have to be registered with that country's Certification and Accreditation Administration by May."

"But it says the registration process is comprehensive, with more than 350 dairy manufacturers and stores and 18 infant formula manufacturers seeking registration [by May]"

[GR8DAY]

.......so how does BLIS fit into this SIMLA??

[simla]

Um ... that would be the subject of the last several posts, Gr8day! Answer just three posts back from this.

[simla]

Just since I'm watching this Chinese dairy thing, and not related to Blis particularly, I found this Chinese report. "New Zealand made up ... 86 percent, of all [Chinese dairy] imports. Wow!

Explains why all the interest in buying into the NZ dairy industry. It's all very understandable being nervous of Chinese money swamping NZ, but the Chinese are undoubtedly also pretty nervous about their food needs. There was a story last month that a half a million Chinese die from smog per year. But consider this. If they can't stop that (and we all hope they can), and that rate continued every year, it would still only affect a third of their population after an entire 1000 years. The scale of their population, and their needs, is just simply huge.

I really don't know how this will all be sorted in the end. But it also illustrates why finally entering China could be significant for Blis. That's why I'm following this registration thing.

[Nigel]

When's the next financials/update due?

[simla]

Next annual report due in May, say two months.

However, they gave an update in Feb/Mar for the last two years and I would imagine they will do the same this time.

However, the whole thing hinges on their getting their factory open. Obviously they can forecast quite different things if they know it is open than if they wonder if yet another hurdle is about to be thrown in front of them. The last few posts have been about meeting Chinese requirements, and (as I understand it) the guts of it is they have to be registered by May 1 along with 350 other NZ factories, so big log jam even if no problems.

I rather expect Blis will be bottom of the pile and get registered around May 1 (or even later still, since Blis has no current exports at risk).

So what does Blis do about announcements? Don't know, but I'd be mighty annoyed if I was them sitting there twiddling their thumbs waiting for yet another new regulation to be resolved. The factory was completed in September, 6 months ago.

[Leftfield]

BLT update out

REL: 1336 HRS BLIS Technologies Limited GENERAL: BLT: BLIS Technologies Limited Update and Guidance Pursuant to its governance review BLIS Technologies Limited ("BLIS") has appointed Tony Offen to the newly established role of Deputy Chairman. Mr Offen who was first appointed to the Board in 2009 will also Chair the Audit Committee. The Board intends to appoint an additional Director to strengthen the organisations marketing expertise in due course. Since reporting interim results in November the Company has substantially achieved its near term development objectives albeit with some delays. New laboratory facilities are substantially complete with staff expected to transfer to the new premises in April. The nutritional plant has been commissioned and the Food Safety Plan was approved in February but Registered Manufacturing Plant status remains pending, the latter being required to allow export of product to target markets in Asia. Accordingly no meaningful nutritional sales are now anticipated for the 2014 financial year. Ingredient sales into the United States have resumed but some shipments have been delayed due to stringent border control protocols. The delays resulting from regulatory certification and approval processes mean that trading revenues for the 2014 financial year are now expected to be about $1.25 million. This will be about a 12% increase on the $1.121 million recorded in the 2013 year despite the discontinued operations of BLIS Functional Foods ("BFF") which contributed $408k to 2013 turnover. An operating loss of about $1.6 million is now anticipated for the 2014 financial year. A loss of this magnitude will be about 15% lower than the $1.856 million recorded in 2013. The decision not to capitalise any further development costs on products that are now in commercial production will result in about $0.1 million of costs capitalised rather than the $0.467 million capitalised during 2013. Accordingly the pre-capitalisation operating loss for 2014 will be about 30% lower than that recorded in 2013. Aggregate revenues are expected to more than double in the 2015 financial year driven by the commencement of nutritional sales and strong growth in all remaining product categories. An operating deficit is anticipated in the first half of the 2015 financial year with the Company expected to move into operating profit during the second half of the year.

[simla]

Hey, ask any ye shall receive!

Okay, another mildly dismal result for the year just completed, with a "operating loss" of 1.6m.

BUT .... effectively another 540k revenue on last year anyway (after subtracting ice cream revenue), and American sales resuming (with border control difficulties presently).

BUT REALLY GOOD ... Aggregate revenues are expected to more than double in the 2015 financial year ... and the Company expected to move into operating profit during the second half of the year.

Great.

(As noted, the registration of the factory remains a nuisance.)