EZZ lifts on record revenue of $66.4m in FY24

• EZZ achieves record revenue of $66.4m in FY24, up 78.9% on pcp
• Company launches 21 new products in FY24 and expands distribution channels
• Gross margin remained above 75% in FY24, which EZZ is confident of maintaining

Special report: EZZ Life Science Holdings is up ~17% today after releasing its unaudited financial results for FY24 with record revenue of $66.4m, up 78.9% on the previous corresponding period.

EZZ Life Science Holdings Limited (ASX:EZZ) said it has achieved strong financial and operating performance in FY24 including the launch of 21 new products along with new distribution channels.

Financial Highlights include:

• EBITDA of $10.4m, up 103.8% on pcp
• Gross margin remained above 75% in FY24
• NPAT of $6.9m, up 91.8% on pcp; and
• Operating cashflow of $6.2m, up 55% on pcp.

EZZ had a cash position of $19m on June 30, 2024, up 37.5% on pcp. The company said it maintained “balance sheet flexibility to implement and pursue growth opportunities”.

EZZ paid a fully franked interim dividend of 1.5 cents/share in FY24, up from $0.0098/share in FY23.

Year of new product launches

EZZ focuses on genomic research and development to address four key human health challenges including genetic longevity, human papillomavirus (HPV), children’s care, and weight management.

During the year EZZ launched 21 new EZZ products in FY24, bringing the total active product portfolio to 53 SKUs.

EZZ said it was achieving growing brand awareness in China, which is one of its key target markets.

The company also introduced 10 new distribution channels and expanded networks across key Chinese e-commerce platforms including Douyin, Tmall Global, Kuaishou, Aubay, and O’Mall.

Targeting US market and expansion in Southeast Asia

EZZ is also targeting US market expansion in FY25 after announcing in June the US Food and Drug Administration had approved nine of its products in the food category.

The company said the US market represents a significant opportunity with online sales of health supplements totalling US$23.8 billion in 2023.

EZZ has registered a wholly owned US subsidiary, EZZ Life Science Holdings (USA) Inc, which will be used as the trading entity for that market.

Furthermore, EZZ has secured a strategic investor and a major sales agreement to expand distribution channels in existing and new markets within South-east Asia.

Executing on growth strategy

EZZ chairman Glenn Cross said the company had delivered a strong set of financial results as it continued to execute on its growth strategy.

“We have significantly expanded EZZ’s product range and grown our distribution channels in key markets,” he said.

“China has been a strong growth market for the company this year, and we expect it to continue following the strategic relationships we announced during the last quarter of FY24.

“While economic conditions are expected to remain challenging given the ongoing cost-of-living pressures for consumers, EZZ’s experienced management team is confident in its ability to deliver continued revenue growth and margin expansion while driving efficiencies within the business.

“Our expansion into the US market in FY25, along with our strong balance sheet—which enables us to consider value-accretive growth opportunities—provides confidence that we’ll deliver further revenue growth in FY25.”

This article was developed in collaboration with EZZ Life Science Holdings, 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.