Asia loves milk + Bioxyne has milk = Bioxyne making a metric tonne of money
Health & Biotech
Health & Biotech
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Asia is where it’s at for Aussie food producers but the regulatory processes across the region are causing headaches.
Bioxyne (ASX:BXN), maker of a honey-colostrum milk formula, has seen revenue from selling into Asia jump by 83 per cent to $1.4 million.
Why wasn’t it higher? They’re having a few problems getting their probiotic pill PCC, the product driving sales now, past regulators in several unnamed countries.
They are also looking at a $900,000 bill to recapitalise the Indonesian reseller, as per foreign investment rules there.
It’s a detail Bioxyne has been clear about since it bought into the company in September, but hasn’t put a date on yet.
Bioxyne also reduced its loss by 76 per cent to $175,305.
They sell, or have applications to sell, milk powders into Malaysia, Indonesia, Thailand, Philippines, Myanmar, Cambodia and Mauritius.
A year ago Bioxyne got the nod to sell a honey, colostrum and milk powder formula into Malaysia — and was seeking an import licence for China.
Colostrum is “a thick, sticky, yellowish mammary secretion that all mammals provide to their newborns during the first 24–48 hours after delivery”, according to a research review called Health Benefits of Bovine Colostrum in Children and Adults.
And if there were any doubts that Asia still wants Aussie milk powder — as Chinese companies try to squeeze the importers out — A2 Milk’s (ASX:A2M) latest half year revenue and profit rose over 40 per cent and 55 per cent respectively.
They’re now bigger than Caltex, Coca-Cola Amatil and Seek.