• EZZ reports record revenue from operating expenses of $30.3 million during H1 FY25
  • Company noted it continues to advance its market entry into US during the half
  • Achieved 84% year-on-year growth during last year’s 11.11 Global Shopping Festival on 11 November

 

Special Report:  EZZ Life Science is up more than 14% today after reporting record revenue from operating activities of $30.3 million in a milestone H1 FY25, which saw the genomic life science company advance plans to enter the US market.  

EZZ Life Science (ASX:EZZ) has reported a robust H1 FY25 result with strong financial performance, new distribution channels and geographical markets and further product development.

Among key financial highlights for H1 FY25 EZZ revealed:

  • revenue increased by 40% on previous corresponding period (pcp) to $30.3m;
  • threefold increase in pre-tax net profit on pcp to $4.8m;
  • gross margins increased to 77% from 71% on pcp;
  • net profit after tax of $3.2m, up 180% on pcp;
  • cash position of $19.9m as of December 31, 2024, with no debt excluding lease liabilities.

EZZ said its solid operating profit and strong growth momentum was fuelled by successful investments in marketing.

 

Success on various fronts

A highlight of H1 FY25 for EZZ was its strong performance during the 2024 11.11 Global Shopping Festival, a major global shopping event offering brands the opportunity to raise awareness online.

Revenue from major marketplaces, including Douyin, Kuaishou and Tmall in its key market of China during the event increased by 84% year-on-year to $5.9 million.

The company attributed the Chinese growth to effectiveness of its digital marketing strategies, including key opinion leaders (KOL) and influencer engagement.

The company said EZZ-branded products continued to show strong growth in 1H FY25 with eight new products launched.

Revenue from new products was $1.2m for H2 FY25, with EZZ-branded product revenue for the half contributing $28.3m, up 48% on pcp and accounting for 94% of total revenue.

And during H1 FY25 EZZ added 14 independent pharmacies to its expanding omnichannel distribution network.

Products are now sold across more than 600 pharmacies, 200 specialist and grocery retailers and 750 e-commerce platforms, including Chemist Warehouse and Priceline Pharmacy.

 

Solid progress on US market entry

EZZ noted it advanced plans for entering the US market during H1 FY25, appointing a project team of four staff with backgrounds in marketing and biomedical science.

The company is developing a US-specific brand to avoid confusion with its Australian brand and to address price differences between markets.

It has established a company framework for the US including bank accounts and operational structures to facilitate future growth.

EZZ has identified four high-growth product areas for the US market including probiotics, gut health, women’s health and exercise health.

A further update from the company on its US expansion is expected in April.

 

Further growth forecast for second half

After a milestone H1 FY25, EZZ said momentum would continue in the second half of FY25 with an enhanced US market entry strategy.

The company said it would continue expanding its product range with at least five new products in H2 FY25.

It emphasised it aims to continue capitalising on its key market of China with ongoing investments in enhanced marketing and influencer/KOL engagement.

EZZ also revealed it anticipates entry via wholesale distributors in new geographical markets in H2 FY25 and plans to continue exploring strategic acquisitions to enhance its product portfolio and global market presence.

 

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.

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