Genomics life science company EZZ Life Science has had an outstanding quarter, and is now set to take that momentum into the rest of 2023.

Genomic-tech firm EZZ Life Science Holdings (ASX:EZZ) had a strong quarter, ending Q2 FY23 with $8.6 million in cash inflows from customers.

This was a 43% increase from the previous quarter, and a very significant increase of 132% compared to the pcp.

It comes as the company achieved remarkable success during the 11.11 Global Shopping Festival in China, breaking company records with $2.56 million in sales, an 8x increase from previous year’s sales.

As a result of these receipts, the company’s cash position remains robust, with a balance of $9.6 million at December 31, 2022.

The board has subsequently declared a fully franked final dividend to shareholders during the quarter, which was paid to shareholders on December 16.

Looking ahead, the company sees a favourable growth outlook, particularly as Chinese visitors start to come back to Australia following reopening of their borders earlier this month.

Spectacular success in China

EZZ’s strong performance comes on the back of its rapid progress in product innovation, with the release of five new EZZ products and upgrades to the Eaoron line during the quarter.

The five new products released were EZZ Incontinence Relief, EZZ Joint Energy Boost, EZZ Brain Focus Superblend, EZZ High Strength DHA, and EZZ Luminescent Beauty Tablets.

This financial year these products were successfully showcased at three renowned exhibitions in China, Turkey, and Singapore.

The company continues to gain reputation, and following success during China’s 11.11 Global Shopping Festival, EZZ was one of four brands invited to attend the Alibaba Group’s 11.11 Global Shopping Festival media briefing in Sydney.

In terms of sales, the 11.11 event proved to be an outstanding result for EZZ.

The company sold over 41,600 items on Tmall and Douyin, putting it at the top of sales on these two major e-commerce platforms in China.

Notably, EZZ’s L-Lysine Growth Capsule outsold competitors such as Swisse and became the top-selling product on Tmall Global, based on monthly data calculations of sales figures, customer satisfaction rates, and re-purchases.

On other platforms, EZZ Shopify has also seen exceptional growth during the period, with a five-fold increase from the previous quarter and 152 times compared to the pcp, thanks to a significantly stronger customer conversion rate.

In October, EZZ declared its second and final dividend for FY22, which was paid to shareholders in December.

Despite the significant Covid-19 challenges faced, EZZ remained profitable and decided to distribute profits with shareholders as a sign of appreciation for their ongoing support.

China and Southeast Asia

Looking ahead to the rest of 2023, EZZ will be looking to position itself for further growth as the world recovers from the pandemic.

With the reopening of China’s borders, the company expects to see a pick-up in Chinese tourism in key markets of Australia and New Zealand this year, providing a significant boost to its tourism retail trade.

Prior to the pandemic in 2019, 1.4 million Chinese visitors represented $12.3 billion in annual tourism receipts to Australia.

On the product development side, EZZ will be focusing on developing new products to appeal to both existing and new customers.

The company already has a number of new product launches scheduled for 2023, with plans to expand the customer base into new markets, specifically Southeast Asia.

This article was developed in collaboration with EZZ Life Science, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.