EZZ’s big growth plans on target after another quarter, oodles of cash and expanding distribution
Health & Biotech
Health & Biotech
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EZZ has reported a strong December quarter as it continues its transformation into a fully integrated life sciences company.
Innovative leader in the genomic-tech space EZZ Life Science Holdings (ASX:EZZ) has reported a solid cash position with a closing balance of $8.9 million for Q2 FY22.
The cash was a very slight drop on Q1 FY22, because of EZZ’s maiden dividend payout and carried over manufacturing costs.
Although the company was closed for three weeks over the Christmas break, cash received from customers remained strong for Q2, with an increase of ~$80k compared to Q1 FY22.
EZZ’s operating cash flows reduced in the quarter due to manufacturing cost payments and deposits to manufacturers and suppliers to increase production in the following months.
EZZ listed back in March 2021 after an oversubscribed public offering.
The company has already rewarded investors with a maiden, fully franked dividend of 0.45 cents per share.
The dividend represented a payout ratio of 7.5% based on the company’s earnings per share of 5.98 cents, which increased by 13% throughout FY21.
The company added two new products to its range in Q2 FY22. EZZ Biotic EnGastro Capsule and EZZ Biotic HHP Support Probiotic will help promote a healthy digestive system and immune system function, treat diarrhoea and reduce symptoms of medically diagnosed Irritable Bowel Syndrome (IBS).
The new EZZ branded Biotic products aim to target the bacterial balance in the gut and provide effective microbiome digestive support where imbalances can activate the immune system.
Both products also aim to combat Helicobacter Pylori, which is a common type of bacteria that grows in the digestive tract and tends to attack the stomach lining, causing stomach ulcers and increases the risk of stomach cancer.
During the quarter, EZZ established four new distribution channels internationally in the USA, Singapore and China. The Chemist Warehouse China Flagship store had placed their first order in November.
The company also started to run new online stores for both its EZZ and Eaoron branded products.
The development of these distribution channels has contributed approximate~10% of total revenue.
EZZ has already begun leveraging its genomic research with leading local and international universities, along with product development to isolate and unpack four key areas of being alive including:
The company has also earmarked establishing a Good Manufacturing Practice (GMP) certified manufacturing facility in Australia or New Zealand to improve production efficiency.
In December EZZ appointed former CEO and COO of AusBiotech (Australia’s biotechnology organisation) Glenn Cross as its new chairman and non-executive director as it continues transformation into a fully integrated life science company.
Cross has more than 40 years’ experience in the life science sector domestically and internationally, including ~20 in senior executive roles.
In recent years Cross has been involved in capital markets and general investment activities in Australia, Asia, and North America. He is a non-executive director of multiple private and public companies and investment funds.
This article was developed in collaboration with EZZ, 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.