BLT - Blis Technologies

[Snow Leopard]

Nice when you biggest NZX holding is goes ballistic.

With a market cap of $100M and no real debt the question is can one see profit growth to $10M profit pa within the next five years?

I would suggest that is a definite maybe. Time for a song, sing along

[sb9]

Blis’ biggest problem is their ingredient supply chain, they have soaked up there reserve raw material in this extra sales demand. Fonterra manufacture their probiotic K12 raw ingredients and can only deliver contracted supply and have no capacity to increase the raw material supply to BLIS. This will cause a raw material supply shortage going forward as indicated in their release on Thursday. Basically they can’t sell more than the have, and they have no capacity for increasing production of the pure K12 ingredients. Increasing sales to $20m next year is unlikely unless they find additional raw material supply. It not that easy to ramp up, and who else can wholesale manufacturing probiotics especially in NZ.

I believed Blis is overvalued at present as they haven’t proven their reliability or their business continuity. Perfect storm in demand leading to shortages in the future months.

Tread carefully here, great business in principal , don’t get burnt by the hype, this is a business still run by scientist and not businessmen and has growing pains to come.

Their products absolutely do work , I have seen proof time and time again and the science backs it up. I do believe in Blis but to many shares on issue and they are constrained by their ability to rapidly grow .


Disclosure: I am an amateur on here and this is just my very small opinion.

Thanks for enlightening re Fonterra role in supplying raw ingredients for K12 probiotic, wasn't aware of that, bit of learning for me.
And good balanced and practical views re Blis business overall, well done.

[forest]

Blis’ biggest problem is their ingredient supply chain, they have soaked up there reserve raw material in this extra sales demand. Fonterra manufacture their probiotic K12 raw ingredients and can only deliver contracted supply and have no capacity to increase the raw material supply to BLIS.(SausageDog)

SD I am surprised by your comment that Fonterra have no capacity to increase the raw material supply to BLIS. Fonterra is a giant specially compared to BLIS, can you expand on this comment please.
Cheers.

[patrick]

Thanks,
I got “our supplier base” wrong but some comfort in the extra shift employed.

[SausageDog]

Hi forest,

Fonterra’s probiotic plant manufactures mainly for their own needs, mainly probiotics into infant formula. It runs at capacity year round and supply’s 3rd party customers. The Blis business is low value smaller volume and should Fonterra’s own demand increase as it has done under the current Covid emergency it will be 3rd party’s that will get less or no supply. Blis are already supplied more product than contracted. I imagine that Fonterra’s probiotic unit has a higher asset value than the market cap of Blis.

I don’t believe Blis can ramp up capacity at any speed and definitely not at the current rate of panic.

[winner69]

Hi forest,

Fonterra’s probiotic plant manufactures mainly for their own needs, mainly probiotics into infant formula. It runs at capacity year round and supply’s 3rd party customers. The Blis business is low value smaller volume and should Fonterra’s own demand increase as it has done under the current Covid emergency it will be 3rd party’s that will get less or no supply. Blis are already supplied more product than contracted. I imagine that Fonterra’s probiotic unit has a higher asset value than the market cap of Blis.

I don’t believe Blis can ramp up capacity at any speed and definitely not at the current rate of panic.

Thanks mate

Huge demand but can’t supply ...what a bugger

Suppose that’s what happens when (as somebody said on here) scientists run a business

should say supply chain specialists call managing a supply chain successfully is a science

[forest]

Hi forest,

Fonterra’s probiotic plant manufactures mainly for their own needs, mainly probiotics into infant formula. It runs at capacity year round and supply’s 3rd party customers. The Blis business is low value smaller volume and should Fonterra’s own demand increase as it has done under the current Covid emergency it will be 3rd party’s that will get less or no supply. Blis are already supplied more product than contracted. I imagine that Fonterra’s probiotic unit has a higher asset value than the market cap of Blis.

I don’t believe Blis can ramp up capacity at any speed and definitely not at the current rate of panic.

Thanks for sharing SD. Do you know what Fonterra is supplying Blis? Is it just a medium that Blis uses to grow their healthy bacteria's on or is it a finished product?

[SausageDog]

Fonterra grow and concentrate all the Blis bacteria and supply it as a highly concentrated freeze dried powder. Blis then formulate it blending down to the correct cell count and manufacture the capsules or powders. Blis don’t make their raw material and don’t have the capacity to do so.

[Leftfield]

Thanks for sharing SD. Do you know what Fonterra is supplying Blis? Is it just a medium that Blis uses to grow their healthy bacteria's on or is it a finished product?

Good Q..... SML just up the road as an alternative supplier?? Hint hint.

[SausageDog]

SML arnt a probiotic or pharmaceutical manufacturer, just a milk company at the moment.