BLT - Blis Technologies

[MarineSalvage]

If I was Shisedo or Elizabeth Arden or L'Oreal I'd find Blis would be a cheap pipeline of NPD

Revenue slightly down on what i was expecting but with covid disruption im prepared to overlook it.thoughts?

[jimdog31]

Revenue slightly down on what i was expecting but with covid disruption im prepared to overlook it.thoughts?

I wonder if as a result of less common sickness out and about due to social distancing that could influence?

[tango]

If I was Shisedo or Elizabeth Arden or L'Oreal I'd find Blis would be a cheap pipeline of NPD

What’s your logic on that? Surely the big cosmetic companies already have plenty of opportunities.

Don’t get me wrong, cosmeceuticals are a growth area but many are already doing it and there are plenty of well established ones available. The microbiome is trendy but it would be cheap for a cosmetics company to do a bit of research and simply add a probiotic that has positive research for the skin into a formulation. Just as they all started adding green tea extract, and then pomegranate, etc.

Same with drinks. Most of the meal replacement shakes now add probiotics. Quicker and easier ways to jump on the trends IMO. No NPD needed. Just add in one ingredient. Bam. Done.

Blis doesn’t have name recognition in this market. It’s much easier to have a grad student spend a couple of days on pubmed to come up with the next hot thing and throw it in. It’s the way they all do it these days

[bullfrog]

I like the focus on marketing and establishing a credible brand in new markets (Canada and China), and it appeared that this will take priority over R&D, which is good. It will take time and money, which they acknowledge with a flat EBITDA forecast for the next year.

The media is dominated by health stories, the world is focused on health, all it takes is a Bollywood/chinese based influencer on TikTok to recommend Blis, and it's all on. Good question from the floor about getting young media people involved! Not sure the question was answered about whether they have the capability to quickly ramp up production... hmmmm

[tango]

I like the focus on marketing and establishing a credible brand in new markets (Canada and China), and it appeared that this will take priority over R&D, which is good. It will take time and money, which they acknowledge with a flat EBITDA forecast for the next year.

The media is dominated by health stories, the world is focused on health, all it takes is a Bollywood/chinese based influencer on TikTok to recommend Blis, and it's all on. Good question from the floor about getting young media people involved! Not sure the question was answered about whether they have the capability to quickly ramp up production... hmmmm

My understanding is that production is outsourced to Europe. Is that correct? Therefore ramping up should be feasible.

Do they have production centres in Asia or USA?

[tango]

There was mention of barriers to entry for a competitor to take the patent and replicate the products when they expire at the end of this year. Does anyone know what those barriers are?

[Leftfield]

Didn't attend the virtual AGM as fine weather was calling me outdoors. Now back from a beautiful morning adventuring in the hills I'm slowly absorbing the results and comments.

1.) Mr Market not too fussed by the result (at 1pm...no big deal.) Footnote; nice to see the SP improving later this aft. I reckon, 8c will be the new 'floor.'
2.) The result was pretty damn good IMHO. Profit up 320% EBITDA up 130%. working capital up $1.8 mill. Revenue up 29%
3.) Many punters were expecting a stronger result assuming Blis products would be great to treat the onset of Covid. However there is no marketing or manufacturing claims made along these lines (yet) so a tab optimistic IMHO.
4.) Many punters just in for a quick profit may be disappointed, but those of us with a longer term view will note the new product lines (promising) growing profitability (even in Covid times) growing cash on hand, and growing attempts to establish new markets in places like Canada and China.

While I await more details from the AGM via Pierre who was attending (along with a long list of Q's) BLT is still a firm hold for me. Traders will Trade. Holders will Hold.

In my view - BLT is a small cap NZ business on the verge of profitability and gradually securing a secure niche in global markets.

Disc - Holding and happy. BAU IMHO.

[fluziosaurus]

First time poster, long time observer on sharetrader.

Highest volume going through today in the last few months. Agree LF the market will possibly set 8c as a floor. Possibly see a share consolidation period till the next update which will be good for reducing volatility. Together with the mentioned share consolidation potentially happening as we heard at the meeting this morning.

Disc Hold

[pierre]

Didn't attend the virtual AGM as fine weather was calling me outdoors. Now back from a beautiful morning adventuring in the hills I'm slowly absorbing the results and comments.

1.) Mr Market not too fussed by the result (at 1pm...no big deal.) Footnote; nice to see the SP improving later this aft. I reckon, 8c will be the new 'floor.'
2.) The result was pretty damn good IMHO. Profit up 320% EBITDA up 130%. working capital up $1.8 mill. Revenue up 29%
3.) Many punters were expecting a stronger result assuming Blis products would be great to treat the onset of Covid. However there is no marketing or manufacturing claims made along these lines (yet) so a tab optimistic IMHO.
4.) Many punters just in for a quick profit may be disappointed, but those of us with a longer term view will note the new product lines (promising) growing profitability (even in Covid times) growing cash on hand, and growing attempts to establish new markets in places like Canada and China.

While I await more details from the AGM via Pierre who was attending (along with a long list of Q's) BLT is still a firm hold for me. Traders will Trade. Holders will Hold.

In my view - BLT is a small cap NZ business on the verge of profitability and gradually securing a secure niche in global markets.

Disc - Holding and happy. BAU IMHO.

I attended the meeting this morning and was pleased with what I heard. Here are my comments and thoughts in pretty random order:

* The market reacted negatively to the first quarter result. I was expecting a bit more too. However I spoke to Brian after the meeting and he said he is confident of sustainable growth over the coming year despite the first quarter basically equalling last year. He said the company had a history of over-promising and he prefers to operate with more caution so will not publicly put a number on the growth forecast at this stage.

* Expect ongoing growth in revenue but don't expect too much net profit growth over the next year or two (don't expect any losses though). Profits from increased sales will be invested in marketing, product development and other growth-focused activities.

* The business is transforming itself from a research-led company into a sales and marketing-led operation. New staff employed to assist with development of e-commerce cross-border sales into China - including an Alibaba store. (The Sinopharm connection has not delivered the anticipated results but is not dead yet.)

* Strong focus on brand-building and development of on-line channels. Tony Balfour who was appointed to the Board late last year gave a brief address prior to the vote for his re-election. I'd say he was an inspired choice for the Board with his hugely successful background in marketing and brand building. (Tony was responsible for launching the Mainland Cheese old guys advts which are now the longest running marketing campaign in NZ.) I'm sure he will pay for himself many times over in providing support and advice for BLT in the marketing arena.

* The launch programme is well advanced for sales Canada in time for winter. It was largely in place pre-Covid travel restrictions. Population of Canada is about 40 million – around 50% more than Oz. Initial sell-in should give a good boost to sales. Lets hope ongoing performance is better than Oz.

* UltraBLis is about to be released through pharmacy distribution channel in addition to current online sales ex the BLT web site.

* New products are underway - Q24 skincare to be released this year. A brand manager has been hired to look after the skin care product as they venture into a completely new (and huge) market segment. New initiatives into the dental health market are also in prospect.

* I raised the question of patents due to expire from late this year through to 2026. Brian said the company has no concerns about that and that branding, trademarks, trade secrets and other IP will insulate the company from the impact of potential competition.

* We can anticipate some action on a share consolidation this year to help minimise some of the volatility in the SP. And don't be surprised if there is a cap raising to support the launch of a new product (maybe skincare?). My conjecture is that the cap raise and consolidation may go hand in hand.

* In summary, there’s lots going on and it’s all focused on growing the business by selling more stuff to more people. But as Tony Balfour said, “99% of our customers have never heard of Blis yet,” which implies that while there's a big opportunity, there’s also a big marketing job to do.

If you’re looking for dividends, BLT is not for you. But if you want to be part of a success story then it will most likelybe worth hopping onboard – or hanging in if you’re already there. I am - but I've been onboard since 2005!

[DISCL: This is not financial advice]

[emearg]

Thanks Pierre...just a couple of questions.

* The launch programme is well advanced for sales Canada in time for winter. It was largely in place pre-Covid travel restrictions. Population of Canada is about 40 million – around 50% more than Oz. Initial sell-in should give a good boost to sales. Lets hope ongoing performance is better than Oz.

Do you know if it will be Blis produced finished product in Canada? Or will they be supplying ingredients only?

Q24 skincare to be released this year.

Did he tell you this during your chat? I don't think this was stated in the presentation? Generating revenue from this product this year strikes me as unrealistic but super happy to be told otherwise.

And don't be surprised if there is a cap raising to support the launch of a new product (maybe skincare?)

Did he tell you this during your chat?