BLT - Blis Technologies

[forest]

Refreshments were top quality.
Thoughts uhmm, potential is the best I can think of.
This company started as a very science focus company. Now it has develop products which they think have commercial value. The company is now focussing on its marketing.
They seem to have a credible marketing team however we have not seen that reflected in the revenue numbers so far.
Lots of ideas and collaboration with others.
Interesting is a probiotic toothpaste which is in development.

[Arthur]

Random thoughts...
K12 is off patent, yet Probi (one of their largest buyers) still saw fit to chuck capital into the pot instead of going it alone. That gives me hope.
Skin is NZ only while they iron out any issues. They estimate their skincare niche will have a market value of US$3 billion a year by 2030.
The incentive scheme is company wide, which is great.
The company is on a projected PE of about of about 150, so there is alot of weight on the shoulders of the marketing team.
If Canada is half as successful as NZ or a major influencer on Tmall does an endorsement the profit projections will prove very conservative.

[Arthur]

Hi LF.
I feel a bit better now I've had my rant but as a marketer in my previous and current life, I just don't get the strategy for BLTs skincare promotion.

I know I'm nowhere near the target market but my wife tried the product, isn't interested in a repeat purchase and thinks the messaging is a bit loopy too.

I'll be sending a few questions to Brian in advance of the ASM and happy to add others you or any other STers would like answered at the meeting.

Just PM me with your questions and I'll add them to my list.

Maybe there might be some positive news at the meeting. Maybe the Canada launch was a sensational success and I will be proved totally wrong about Unconditional Skincare.

In that case all will be forgiven and my romance with BLT will continue - with no more Warriors analogies.

Winner: Thanks for your kind words mate. Nice to see your softer side on display. Haha.

I was waiting with baited breath for your questions Pierre.
Did you get anything useful out of Brian? Did he answer the questions you forwarded at the ASM? If you had a teen daughter with a skin condition, would your wife suggest she try Q24 to see if it helped?

[pierre]

I attended The BLT ASM along with about 50 other pretty passive shareholders. No fireworks of any kind and very few questions - mine were answered in the presentations.

The addresses from the chairman and the CEO were long on promises but short on detail as to the financial benefits those promises will deliver.

My executive summary is:
a) Good things are coming - yes I know we’ve heard it many times before - but the Probi collaboration is significant. BLT don’t know, or wont tell, how much extra revenue to expect. The best I could get from Brian is that despite a slow first quarter ($1.8m), FY22 revenue will definitely exceed the $10.6m achieved in FY21 and FY20.
b) They are investing for growth (more marketing, people and product development) so don’t expect much initial upward movement on the bottom line.
c) In short, shareholder patience is again (or still) being tested but has a good chance of being rewarded – eventually.

Key takeouts:

1. The Probi connection is a game changer - their $9m capital injection provides BLT with cash for greater and faster growth.
2. Lots of new stuff in development (eg probiotic toothpaste) and Blis branding of Probi products will significantly expand the current range. Probi will use BLT to expand their range too - they currently sell in 40 markets!
3. Staff numbers now 29 and expected to double over the next 2-3 years if sales targets are met.
4. Key markets for ingredient sales growth are USA, Japan and China.
5. The company has a Long Term Incentive (LTI) plan to attract and reward key personnel. Exercising rights to the shares requires minimum compound annual growth of 15% per annum in profits and share price. (That could see the SP at 11c+ in 3 years time).
6. After the issue to Probi, BLT now has 1.2 billion shares issued so consolidation is finally being considered.

Speaking to Brian after the meeting he seemed very upbeat about prospects but totally avoided specifics. Told him my wife would not be a repeat buyer of the Skincare product. He said the target market is millennials who are prepared to spend big on beauty. (My wife is not a millennial but doesn't seem to stop her spending heaps on cosmetics - just not more of this one.) NZ being used as a test for skincare marketing and will be refined for launch into other markets, especially USA. Addressable market is huge. E-commerce is key focus for sales growth following success during the Covid period.

The Probi connection, focus on sales/marketing and the LTI plan, give me confidence that the company is heading for bigger, better and brighter things - it wont happen overnight though!
I'm continuing to hold.

[winner69]

First quarter performance pretty uninspiring

Sales a meagre $1.8m and Ebitda LOSS $1.2m

Magnitude of sales hard to comprehend, especially in view of the hype. Comes in at about $138,000 a week …..my mate with 2 mini marts probably sold more

[winner69]

Thanks for your update Pierre

Let’s keep the faith eh ….2022 big year for Blis, England will bring the World Cup home and ‘this is our year’ will finally come true for the Worriers.

[winner69]

Jeez lots of new hires ….hope they don’t get in each other’s way

Total cost of these 7?

Number of employees >$100k increasing

Suppose it’s called investing to win

[Leftfield]

Thanks for the update Pierre. Very pleased you used the words I used when I first read of the Probi deal.

'Game Changer.'

Beautiful words.

[winner69]

Don’t forget what Ruby said -


”'Overnight success is 20 years in the making',

[emearg]

Probi released their latest results last week and their CEO commented on a number of topics over seven paragraphs. One paragraph, by far the longest was about Blis. I know it's not all about size...perhaps I'm just being hopeful.

We continue to have considerable ambition to grow both organically and through acquisitions. After the end of the quarter, we made an investment in the New Zealand company Blis Technologies. The investment is part of a long-term strategic partnership and an important piece of the puzzle to grow in new health areas and increase profitability through greater capacity utilization of our production resources. Through Blis, we have access to a portfolio of clinically documented bacterial strains within the ear, nose and throat health, which are areas that are relatively uncharted for Probi. In addition to the commercial agreement, we will collaborate within R&D to evaluate new attractive products. Blis is listed on the New Zealand stock exchange NZX and we will be an active owner, including through board representation.