PAZ Pharma Zen

[Beagle]

You're preaching to the converted mate. I have a lot of lifestyle idea's we're working on as I continue the slide from semi retired to mostly retired and then fully retired. I've seen a few reports now that all say essentially the same thing. A hard retirement date is not a good idea. A gradual slide into first, semi retirement, (where I've been for years), and then gradually more and more retired is way better for you in every way.

[Beagle]

My optometrist recommended a daily brazil nut for the eyes a few years ago - a few tasty cents a day for selenium - and my vision has actually improved Not sure if it's that or putting frozen blueberries on my morning cereal - also highly recommended for health and taste. But good on you all for supporting PAZ!

Good tip. Turning down the brightness on one's computer screen is another.

[Joshuatree]

You're preaching to the converted mate. I have a lot of lifestyle idea's we're working on as I continue the slide from semi retired to mostly retired and then fully retired. I've seen a few reports now that all say essentially the same thing. A hard retirement date is not a good idea. A gradual slide into first, semi retirement, (where I've been for years), and then gradually more and more retired is way better for you in every way.

Good onya,"taking the weight off "and living longer ,healthier and with more energy.

[Sideshow Bob]

Annual Result is out:

PharmaZen_FY2021_April_release_Final.pdf (usx.co.nz)

UNAUDITED RESULTS FOR THE YEAR TO 31 DECEMBER 2021

PharmaZen reports second half FY21 recovery as it navigates supply and COVID disruptionsChristchurch biotechnology company PharmaZen (USX.PAZ) today reports FY2021 results showing, as signalled at the half year release, a stronger financial performance in the second half than the first half. T

he improvement follows continuing strong demand for its nutraceutical products and successful adaptation to the constraints of the COVID-19 pandemic with the associated ongoing global supply chain challenges.Revenue1for the year to 31 December 2021 was only marginally weaker at $20.5m from $21.5m in the prior year, an outstanding outcome given the often severe covid imposed operating constraints throughout the year.

Most pleasingly there was an 18% sequential improvement in second half revenue to $11.1m, offsetting the weaker $9.4m result in the first half when disruptions to production were at their peak.Underlying EBITDA2for the year dropped from $6.7m in 2020 to $2.3m, however the second half year represented a significant turnaround with underlying EBITDA more than $1.5m up from the $776k achieved in the six months to the end of June 2021.

The company is meanwhile underpinned by a strong balance sheet and solid operating cashflow. Chair Ken Fergus said: “As we detailed at the half year result, COVID-19 related travel and freight restrictions, along with a four-month shut down of the company’s largest freeze dryer to install a new one without overseas engineering support, saw the company running at a loss for the first four months of the year.

“In the second half of the year these challenges continued. We have faced difficulties freighting finished goods to our offshore customers and importing equipment to meet the demand. We have also faced high staff vacancy rates (over 20%) and intense competition for skilled labour alongside the ongoing difficulties of importing engineers because of COVID-19 border restrictions.

“However, PharmaZen has mitigated what must be seen as a ‘perfect storm’ with the entire team stepping up to meet these pressures and deliver for our customers,” Mr Fergus said. “The easy option was to postpone developments until the borders reopened, however we backed ourselves to undertake the installation and commissioning work that would have previously fallen to equipment suppliers.

This meant building an entire engineering team from ground up to work with some very novel technologies.”Key achievements over the half year have included:

• The completion of the Nuttall Drive facility, including the installation of a 2,000kg dryer.
• The installation of a new 2,000kg dryer at the Port Hills Road facility.The installation of a new Energy Hub at the Port Hills Road facility.
• Completion of the Tawhiri building to a stage where we can commence installation and internal fitoutThe majority of the new equipment for our site at Tawhiri is now in New Zealand with the exception of the next two energy hubs (shipping in April) and three new freeze dryers also scheduled to start shipping in April.

“These challenges have in some measure made the company stronger” Mr Fergus said. “Notably, the experience the team has gained on the initial installations means we now have a selfsufficient engineering team. This capability promises to not only serve us well amid the continuing disruptions, but well into the future.

”Outlook Mr Fergus said the company is pleased with the progress it has made in the first quarter of the new financial year, albeit recognising the continuing challenges posed by the supply chain and those that are emerging with COVID-19 endemic in the community. Given that demand for the company’s products continues to outstrip capacity the company is now reviewing options for bringing forward the commencement of the build at the second facility at Tawhiri.

“The growth opportunities in core products remain strong but we are constantly looking for additional opportunities to grow the company with our new investor providing valuable input.“PharmaZen is well positioned to continue the recovery it has seen in the second half of the financial year. We are targeting the dryers at the Port Hills Road and Nuttall Drive facilities to be running by the end of the third quarter, representing a doubling in our freeze-drying capacity” Mr Fergus said.

“The company also has a number of other already well researched and considered new product development opportunities that the Board is very excited by. These opportunities, coupled with continuing strong demand for our existing products, an easing of border restrictions and our newly developed engineering capabilities, position PharmaZen for a substantially better result for the new financial year.”

[percy]

A very good update.

[Sideshow Bob]

A very good update.

I take it as reasonably positive - yes turnover and profit is down slightly, but between Covid and more importantly all of the capital work has clearly been the focus in recent times.

Need to put some runs on the board - they are a company with $150m mkt cap turning over $20.5m. Hopefully not too much more patience is required.....

[percy]

I take it as reasonably positive - yes turnover and profit is down slightly, but between Covid and more importantly all of the capital work has clearly been the focus in recent times.

Need to put some runs on the board - they are a company with $150m mkt cap turning over $20.5m. Hopefully not too much more patience is required.....

More patience is required.
Building world class state of the art factories under Covid conditions will reap long term rewards.[Yes a lot of short term pain.]
The decision to proceed with the second factory at Rolleston means their long term strategy remains on course.
The right business,in the right sector,at the right time is still true.
Runs on the board.In a year or two they will be scoring 6s off every ball bowled.
Then we will look back and say I could have bought PAZ shares for 60 cents in 2022.
Whoops perhaps 70 cents..lol

[whatsup]

A very good update.

PAZ certainly have not been standing still, to be working and dealing with the Covid headaches is truly commendable, well done PAZ team.

[Joshuatree]

A very good update.

"Well positioned". He must have got that off you Percy

[iceman]

This update is better than I was bracing myself for. We have known for awhile now that the COVID and border restrictions have placed enormous constraints and difficulties on the company and management, being unable to execute their huge upgrade plans as scheduled. It has taken nerves of steel to build their own engineering team from scratch to build these factories and install the equipment.
I was surprised at the huge level of confidence displayed with the commitment to bring forward the build of the 2nd Rolleston factory. With the huge labour shortages all over the country it makes sense for them to continue with the construction and engineering team they have assembled, so why not another factory.

Positive to see the confidence with being able to sell all they can produce and good to see the comment about the new partner being of value there.

But as expected with these delays and having to shut down production for a long time, we have had a poor financial result. I'm with Percy that a lot more patience is required here but I am very comforted to see that everything seems to be heading slowly in the right decision.

Hopefully we will get some more info and detail at the AGM.