Diet shake maker Probiotec forecasts fatter profits
Health & Biotech
Health & Biotech
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Probiotec, the maker of diet shakes Impromy and Celebrity Slim, has updated its profit guidance for the year — and it’s anything but slender.
Probiotec on Tuesday upped projections for the half-year to December to between $1.5 million and $1.6 million — an increase of 115 to 130 per cent on the prior corresponding period.
The company (ASX:PBP), which is also behind the iconic Gold Cross pharmacy jellybeans, told investors December trade had been stronger than expected.
The shares gained 2 per cent on the news, closing at 87c on Tuesday for a market cap of $53 million.
The company makes, markets and distributes prescription and over-the-counter pharmaceuticals, complementary medicines and specialty ingredients.
But it’s the company’s contract manufacturing business and weight management brands that are carrying the team.
From their facilities in Victoria the company makes high volumes of tablets, capsules and caplets — bolstered by the acquisition of South Pack Laboratories in October.
The shares have traded between 37c and 95c in the past 12 months.
At the annual meeting in December chief Wes Stringer said the pharmacy staples were being overtaken in growth by their contract manufacturing division.
“I am delighted to advise that in addition to experiencing ongoing strong demand and enquiry we have signed several new supply agreements to manufacture a number of products under a range of leading brands in the pharmaceutical and functional food space,” Mr Stringer said.
“Our past investments have positioned us well to handle this new business as we still have significant capacity across the majority or our operations along with the ability to bolt on further capacity in a modular fashion, thus avoiding the need for major new capital expenditure.”