EZZ has reported a strong Q4 FY24 with progress in key areas. Pic: Getty Images.
Health & Biotech
Special Report: After becoming a hit on Chinese social media EZZ Life Science has boosted cash receipts from customers 70.3% year on year in the fourth quarter, with growth primarily attributable to sales on China’s TikTok equivalent Douyin.
Genomic life science company EZZ Life Science (ASX: EZZ) says its investments in data optimisation, SEO activities, and influencer engagement have boosted growth across most of its distribution channels.
Sales on Douyin reached $14m in Q4, up from $6.8m on pcp or an increase of 105.9%.
Alibaba Group’s Tmall remains EZZ’s second largest channel with sales of $3.8m in Q4 FY24 compared to $1.4m on pcp.
Towards the end of FY23, EZZ started selling through the Kuaishou platform, which focuses on live streaming, resulting in sales of $1.3m in Q4 FY24.
EZZ has a focus on genomic research and development to address four key human health challenges including genetic longevity, human papillomavirus (HPV), children’s care, and weight management.
The company has a strong ecommerce presence and omnichannel models across Australia, New Zealand, China and worldwide.
During the quarter, five new EZZ health and wellness products were launched, which the company says reflects its commitment to offering diverse options and enhancing lifestyle choices.
The products include:
In May, EZZ signed a five-year distribution deal with Hong Kong-based Pinehills Limited to expand its presence in key Asian markets.
Under the deal, Pinehills has committed to purchasing at least $15m worth of EZZ-branded products within the first 12 months with the annual purchase volumes then increasing by a minimum of 10% each subsequent year.
EZZ says the partnership leverages Pinehills’ extensive distribution network and experience in cross-border trade, particularly within China, Vietnam, and other Southeast Asian markets.
In May, EZZ also showcased its range of healthcare products at the TFWA Asia Pacific Exhibition and Conference, which brought together more than 20,000 attendees from across Asia Pacific and globally.
EZZ its attendance at the event resulted in securing orders from several pharmacies at Singapore Changi Airport and by various airlines from mainland China, highlighting the company’s expanding market presence and growing demand for its high-quality products in duty free and travel retail market segments.
In June, EZZ achieved a key milestone with the US FDA approving nine of its products in the food category, facilitating its planned expansion into the US market.
EZZ says the US market represents a significant opportunity for the company with online sales of health supplements totalling US$23.8 billion in 2023.
The company says the nine FDA approved products were selected by the company due to their success in other markets and will form the basis of the initial market launch.
The FDA’s endorsement underscores the high standards of EZZ’s product formulations and manufacturing processes.
EZZ has established a wholly owned US subsidiary, EZZ Life Science Holdings (USA) Inc., to support its operations and growth in the new market.
The company says it will now proceed in implementing similar marketing strategies currently deployed in other key consumer markets with a focus on online marketplaces and platforms to reach the large and growing number of health supplement consumers in the US.
The company says its investment in new marketplaces throughout FY24 has yielded strong results.
EZZ achieved cash inflow of $4.5m from its operational activities, up ~120.3% compared to the previous quarter.
EZZ has renewed its distribution contract with Australian United Pharmaceuticals (AUP) as the exclusive distributor of EAORON products in Australia and New Zealand.
The company says the contract has been renewed under the same terms as the previous contract with a duration of three years ending June 2027.
As of 30 June 2024, EZZ’s cash balance remained strong at $19m, a 31.4% increase over the previous quarter with no debt.
EZZ says it maintained its commitment to returning value to shareholders by paying a fully franked interim dividend of 1.5c/sh during the quarter.
With a strong balance sheet, EZZ says it is continuing with implementing the company’s strategic plan and accelerating growth initiatives.
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.
Health & Biotech
Health & Biotech
Health & Biotech
