Strong HY21 performance despite challenging mkt conditions

Blis Technologies Limited1
REPORT
HALF YEAR
For the Six Months to
30 September 2020

Half Year Report2Half Year Report2
Contents.
Highlights 3
Half Year Report 4
Financial Statements 7
Company Directory 17

Blis Technologies Limited3Blis Technologies Limited3
HY21 Highlights.
up 237
%
North America
sales
$
1.1m
up 41
%
Net surplus
Purity Life
appointed as
Canadian distributor
UltraBLIS™ online launch in New Zealand
New skincare product format finalised
Roolife appointed
as agent and
distributor for
CBEC activity
into China
BLIS branded finished
product sales through
online channels
up 128
%
Revenue increase
of 11
%
$
5.8m

Half Year Report4
In the first six months of
the 2021 financial year Blis
Technologies has delivered
solid revenue growth
and profitability despite
challenging selling conditions
in all markets as a result of
the effects of the COVID-19
pandemic.
Chair & Chief Executive’s Report
Half year
report.
Trading revenue for the six months ended 30 September 2020
(HY21) increased $0.6m (+11%) to $5.8m compared to the same
period in the prior financial year. Of note is the strong revenue
growth in BLIS branded finished products being achieved
online. The 128% growth in digital sales revenue is through our
own website and on the Amazon US platform.
Across our regions we have seen sales performance directly
correlating to the dominant sales channels present in each
respective market. Those regions with greater direct selling
or online sales channels have seen sales growth. However,
in markets where we are more reliant on the pharmacy retail
channel, the impact of COVID-19 lockdowns has reduced retail
foot traffic resulting in softer performance. This has been
particularly evident in Europe but also in Australasia.
Total expenses of $4.9m were up 8% on the prior period. The
increase is principally due to higher investment in the R & D
pipeline together with increased market development initiatives
across eCommerce channels in particular on Amazon in the
USA.
Earnings before interest, tax, depreciation and amortisation
(EBITDA) increased $0.2m (+23%) to $1.3m.
Net Profit for the period was $1.1m, an increase of $0.3m
(+41%).
As at 30 September 2020, the Company held a net working
capital position of $4.8m. The net cashflows from operating
activities are a $0.5m inflow resulting in a cash balance at 30
September 2020 of $3.1m.
Trading conditions
The COVID environment has changed our trading environment
in both positive and negative ways.
Key challenges for HY21 have included:
• COVID-linked impacts including reduced air freight
capacity to key overseas sales markets and reduced retail
foot traffic for over the counter sales in pharmacies.

Blis Technologies Limited5
• Health Canada-Delays in finalising new product
applications based on COVID related workload and
restricted working conditions. Normal performance
standards and target timelines were suspended.
On the upside we have seen a strong lift in our finished product
online sales and sales to our ingredient customers. These
impacts are most evident in our US sales performance which
now represents our largest revenue contributor, overtaking
Europe during the half year. Along with this we have seen strong
consumer interest in our product range as buyers have searched
for proven immunity solutions.
In regions where we have traditionally been strong in the
pharmacy channel the trading conditions are more challenging.
It has been widely reported that based on lockdowns and
shifting shopping patterns, foot traffic to retail locations is down
around the world. In line with this we have seen weaker sales
in our pharmacy based channel, however we have seen recent
evidence of a recovery across most regions.
Regional performance
North America
Revenue growth of 237% to $3.3m
The strong rate of growth in North American sales was on the
back of both strong BLIS® finished goods sales on Amazon
USA and strong ingredient sales. Amazon USA represents an
important growth driver for the Company, not only are we
seeing growth across our existing BLIS® finished goods portfolio,
we have now also launched UltraBLIS™ on this platform from
October. Our ingredient sales in North America have also grown
strongly with virtually all of our customer base in this market
focused on either direct selling or online selling.
Europe/Middle East
Revenue decline 47% to $1.3m
Our customer base in this region has typically focused on the
pharmacy retail channel which has seen a dramatic downturn
based on COVID lockdowns across Europe. These challenging
market conditions have meant that normal orders to support a
winter stock build that would have occurred in the 2nd quarter
have been delayed until the 3rd quarter. Overall we expect sales
to recover and be broadly in line with normal winter stock builds.
Chair & Chief Executive’s Report continued
HALF YEAR REPORT
* IRI NZ pharmacy sales data up to end of September 2020
Digital
Sales
Growth
+
128
%
+
91
%
+
175
%
BLIS.co.nz
Amazon USA
platform
Asia Pacific
Revenue decline 35% to $1.2m
We have seen a significant reduction in foot traffic across
Australia and New Zealand pharmacy channels. Along with this
it has been widely reported that both Australia and New Zealand
have seen an extremely mild cold and flu season which typically
drives significant pharmacy foot traffic over winter. For the 12
months to 30 September the New Zealand pharmacy throat
category sales were down 23% on the previous 12 months.
Pleasingly our products have performed well, with ThroatGuard
PRO® remaining the top selling throat lozenge in this channel*.
In the Japan market we have seen good growth with the
customer base typically selling direct to consumer.
BLIS branded finished goods
Revenue breakdown:
Growing the sales of branded finished goods is a strategic
priority for Blis. By developing the BLIS PROBIOTICS™ brand we
build a strong, direct relationship with the end consumer and
generate sales with a higher margin. While the strong trend to
online sales has supported this goal, the impact of lockdowns
on pharmacy retail has impacted the growth momentum in
markets where we have focused on the pharmacy channel.
Market growth initiatives
UltraBLIS™
Late in FY20 we launched UltraBLIS™ through our own online
website. This unique product offer is based on BLIS K12 and two
other strains that also have a good evidence basis in immunity,
has quickly become our best-selling product through this sales
channel. From September we moved to the next phase of the
product launch with UltraBLIS™ being available in the pharmacy
retail channel in New Zealand. Launches are planned for the
next 6 months and will include release on Amazon USA and on
our Chinese cross-border and e-Commerce platform.
Finished GoodsIngredients
FY20FY21
$
4.6m
$
1.1m
$
3.6m
$
1.6m

Half Year Report6
Chair & Chief Executive’s Report continued
HALF YEAR REPORT
Canada
In August we finalised an agreement with Purity Life Health
Products LP (Purity Life) for the distribution of BLIS® branded
products into the pharmacy and health store retail channels
in Canada. Unfortunately, due to COVID related workload and
restricted working conditions in Canada, normal performance
standards and timelines were suspended resulting in delays in
receiving Health Canada approvals for final packaging. With the
approvals now granted, we can progress with our plan to launch
in the 4th quarter of this financial year.
China cross border eCommerce (CBEC)
COVID related restrictions on international travel has resulted in
a dramatic decline in the Daigou or re-seller market. As a result,
we have reassessed our strategy and partner search with a focus
on cross border eCommerce selling into China. An agreement
with ASX-listed RooLife Group Limited has been finalised for
digital marketing, eCommerce operations and logistics support
in China. RooLife has proven trusted channels to market
in China and provides support across platform and mobile
development, digital marketing, eCommerce, online and offline
sales and payment solutions in China. RooLife will implement
the launch of BLIS PROBIOTICS™ on Alibaba’s Tmall and Alipay
platforms together with providing brand building activity
through social media and engagement with Chinese influencers.
This activity will provide a strong base for our Tmall Flagship
store launch in the 4th quarter of the financial year.
R&D pipeline
Ongoing investment in our pipeline is prioritised to delivering
market leading probiotic based solutions across our target
health and wellness categories:
• Upper respiratory/immunity
• Dental heath
• Skincare and personal care
In dental health we have seen strong growth in consumer
interest for both bad breath solutions as well as solutions for
teeth and gum health. We see exciting opportunities to drive
innovation in the category based on our unique probiotic strains
and, during the half year, have continued to progress novel
formulations within our development programme.
Our skincare development programme has continued to
progress at a pleasing rate. With extensive market research
undertaken in both New Zealand and California delivering
positive consumer feedback, we have now finalised the final
product format and moved to detailed planning for the launch
of our first skincare offer. We believe the skincare market
provides a very attractive growth opportunity for the Company.
Environmental, Social and Governance
(ESG) practices
To support our commitment to robust ESG practices, an ESG
Committee has been established, comprising staff from across
the Company. The Committee is tasked with identifying where
change can be made that is meaningful and relevant to our
stakeholders. By embedding and monitoring these changes
we will be able to start a programme of reporting that provides
greater transparency for stakeholders and complies with the
new requirements for climate reporting. Our annual report will
provide a full update on priorities and our progress across the
following focus areas:
• Advance health and wellbeing
• Be a valuable contributor to society
• Reduce our environmental impact
• Be a significant contributor to an innovation economy
Outlook
The COVID pandemic has impacted our business in a variety
of ways, however we have been able to maintain growth
and continue to progress both new market and R&D pipeline
opportunities that set us up for a strong second half of FY21
and beyond. Consumer demand remains strong however the
channel purchase preference has shifted strongly to online. Our
customer base and our own BLIS® branded finished products
are well positioned for this change in buyer behaviour.
The second half of the FY21 year will see the Canadian market
launch as well as execution of key elements of our CBEC
channel focus including the launch of our Alibaba TMall flagship
store. We are excited by the early success of our new UltraBLIS™
product and will launch the product on Amazon and into CBEC
prior to March 2021.
Based on continued growth in product sales, investment into
new markets and support of the R&D pipeline we reaffirm our
guidance of sustained profitable growth while maintaining an
EBITDA similar to the $2.1m earned in FY20.

Tony Offen
Chairman
Brian Watson
Chief Executive Officer

Blis Technologies Limited7
Brian Watson
Chief Executive Officer
Financial
Statements
For the six months
ended 30 September
2020
Blis Technologies Limited7

Half Year Report8
Consolidated Statement of
Comprehensive Income.
For the six months ended 30 September 2020
Notes Six Months Six Months 12 Months
30 Sep 2020 30 Sep 2019 31 Mar 2020
(Unaudited) (Unaudited) (Audited)
$’000 $’000 $’000
REVENUES
Revenue 3.1 5,794 5,205 10,642
Other Income 3.2 153 71 217
Total revenue and other income 5,947 5,276 10,859
EXPENSES
Distribution expenses 152 65 160
Marketing expenses 1,148 643 1,642
Occupancy expenses 33 32 85
Employee benefits 1,394 1,230 2,558
Raw materials and consumables 957 1,223 2,229
Operating expenses 1,184 1,310 2,553
Finance expenses 12 14 30
Total expenses 4,880 4,517 9,257
SURPLUS BEFORE TAX 1,067 759 1,602
Income tax expense - - -
SURPLUS FOR THE PERIOD 1,067 759 1,602
Other comprehensive income - - -
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 1,067 759 1,602
Surplus for the period is attributable to:
Equity holders of the parent 1,067 759 1,602
1,067 759 1,602
Comprehensive income for the year is attributable to:
Equity holders of the parent 1,067 759 1,602
1,067 759 1,602
Earnings per Share:
Basic (cents per ordinary share) 0.10 0.07 0.14
Diluted (cents per ordinary share) 0.10 0.07 0.14
Net tangible assets per Share:
Basic (cents per share) 0.48 0.33 0.39
Diluted (cents per share) 0.48 0.33 0.39

Blis Technologies Limited9
Consolidated Statement of
Changes in Equity.
For the six months ended 30 September 2020
Share Retained Share option Total
Capital earnings/ Equity attributable
deficit reserve to Group
$’000 $’000 $’000 $’000
OPENING EQUITY – 1 APRIL 2020 37,424 (32,394) 26 5,056
Surplus for the year - 1,067 - 1,067
Other comprehensive income - - - -
Total comprehensive income - 1,067 - 1,067
Equity contributions and distributions - - - -
Share option equity reserve - - - -
- - - -
CLOSING EQUITY – 30 SEPTEMBER 2020 37,424 (31,327) 26 6,123
OPENING EQUITY – 1 APRIL 2019 37,380 (33,996) 37 3,421
Surplus for the year - 759 - 759
Other comprehensive income - - - -
Total comprehensive income - 759 - 759
Equity contributions and distributions - - - -
Share option equity reserve - - - -
- - - -
CLOSING EQUITY – 30 SEPTEMBER 2019 37,380 (33,237) 37 4,180
Unaudited

Half Year Report10
Consolidated
Balance Sheet.
As at 30 September 2020
Note Six Months Six Months 12 Months
30 Sep 2020 30 Sep 2019 31 Mar 2020
(Unaudited) (Unaudited) (Audited)
$’000 $’000 $’000
ASSETS
Current Assets
Cash and short term deposits 3,083 1,908 3,214
Trade and other receivables 1,594 1,580 1,570
Prepayments 142 140 202
Inventory 942 492 685
NZX bond 75 75 75
TOTAL CURRENT ASSETS 5,836 4,195 5,746
Non Current Assets
Property, plant and equipment 491 638 567
Finite life intangible assets 2 859 339 404
Right-of-use assets 300 482 341
TOTAL NON CURRENT ASSETS 1,650 1,459 1,312
TOTAL ASSETS 7,486 5,654 7,058
LIABILITIES
Current Liabilities
Trade and other payables 922 947 1,520
Current borrowings 45 44 43
Lease liabilities 76 91 76
Foreign exchange contracts 22 36 3
TOTAL CURRENT LIABILITIES 1,065 1,118 1,642
Non Current Liabilities
Non current borrowings 61 108 85
Lease liabilities 237 248 275
TOTAL NON CURRENT LIABILITIES 298 356 360
TOTAL LIABILITIES 1,363 1,474 2,002
NET ASSETS 6,123 4,180 5,056
OWNERS EQUITY
Share capital 37,424 37,380 37,424
Retained earnings / (deficits) (31,327) (33,237) (32,394)
Share option equity reserve 26 37 26
TOTAL EQUITY 6,123 4,180 5,056
Tony Offen / Chairman Geoff Plunket / Director
These financial statements have been authorised for issue 19 November 2020.

Blis Technologies Limited11
Consolidated Statement
of Cashflows.
For the six months ended 30 September 2020
Note Six Months Six Months 12 Months
30 Sep 2020 30 Sep 2019 31 Mar 2020
(Unaudited) (Unaudited) (Audited)
$’000 $’000 $’000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from / (applied to):
Receipts from customers 5,931 6,076 11,626
Interest received 9 8 26
Payments to suppliers and employees (5,450) (4,227) (8,425)
Finance costs (12) (14) (30)
Net cash inflow / (outflow) from operating activities 4 478 1,843 3,197
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from / (applied to):
Capitalise intangible costs (542) (61) (94)
Purchase of property, plant and equipment (49) (55) (73)
Sale of property, plant and equipment 57 - -
Net cash inflow / (outflow) from investing activities (534) (116) (167)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was provided from / (applied to):
Repayment of borrowings (22) (677) (701)
Repayment of lease liabilities (39) (39) (72)
Repayment of share option - - 33
Net cash inflow / (outflow) from financing activities (61) (716) (740)
Net increase / (decrease) in cash held (117) 1,011 2,290
Add cash and short-term deposits at start of period 3,214 924 924
Foreign exchange differences (14) (27) -
Balance at end of period 3,083 1,908 3,214
COMPRISED OF:
Cash and short-term deposits 3,083 1,908 3,214
3,083 1,908 3,214

Half Year Report12
1. BASIS OF REPORTING
Reporting Entity
The unaudited consolidated condensed interim financial
statements presented are those of Blis Technologies Limited
(the “Company”) and its subsidiary Blis Functional Foods
Limited (the “Group”).
The Group’s principal activity is developing healthcare products
based on strains of bacteria that produce bacteriocin activity for
sale in New Zealand and overseas.
Statutory base
The Company is a profit-oriented entity, domiciled in New
Zealand, registered under the Companies Act 1993 and listed
on the New Zealand Stock Exchange. The Company is an FMC
reporting entity under the Financial Markets Conduct Act 2013.
The financial statements have been prepared in line with the
requirements of these Acts and the Financial Reporting Act
2013.
Basis of Preparation
The unaudited consolidated condensed interim financial
statements have been prepared in accordance with New
Zealand Generally Accepted Accounting Practice (“NZ GAAP”)
and comply with the New Zealand equivalents to International
Financial Reporting Standards (“NZ IFRS”), as appropriate for
interim financial statements (NZ IAS 34). The interim financial
statements should be read in conjunction with the Group
annual report for the year ended 31 March 2020.
The unaudited consolidated condensed interim financial
statements were authorised for issue by the Board of Directors
on 19 November 2020.
Basis of Measurement
The unaudited consolidated condensed interim financial
statements have been prepared on the historical cost basis,
except for the derivative financial instruments that are
measured at fair value at the end of each reporting period.
Historical cost is based on the fair values of the consideration
given in exchange for assets.
Notes to and Forming
Part of the Consolidated
Financial Statements.
Accounting policies are selected and applied in a manner which
ensures that the resulting financial information satisfies the
concepts of relevance and reliability, thereby ensuring that
the substance of the underlying transactions or other events is
reported.
The same accounting policies and critical judgements,
estimates and assumptions are applied in these unaudited
consolidated condensed interim financial statements as were
applied in the preparation of the Group’s consolidated financial
statements for the year ended 31 March 2020.
The unaudited consolidated condensed interim financial
statements are presented in thousands of New Zealand dollars.
The New Zealand dollar is the Group’s functional currency.
The unaudited consolidated condensed interim financial
statements do not include all the information required for full
financial statements.
Critical Judgements, Estimates and Assumptions
In the application of NZ IFRS, the Directors are required to make
judgements, estimates and assumptions about carrying values
of asset and liabilities that are not readily apparent from other
sources. The judgements estimates and assumptions used in
the preparation of these unaudited consolidated condensed
interim financial statements are consistent with those used
in the Group’s consolidated financial statements for the year
ended 31 March 2020.
Significant Accounting Policies
The accounting policies in the unaudited consolidated
condensed interim financial statements are the same as those
applied in the Group’s consolidated financial statements for the
year ended 31 March 2020.

Blis Technologies Limited13
Notes to and Forming Part of the Consolidated Financial Statements continued
2. SIGNIFICANT TRANSACTIONS AND EVENTS FOR THE CURRENT PERIOD
The following significant transactions and events affected the financial performance and financial position of the Group for the six
month period ended 30 September 2020:
Internally-generated Intangible Assets – Capitalised Development Expenditure
During the period, development work was undertaken that satisfied the requirements for recognition in line with the accounting policies
applied in the Group’s consolidated financial statements for the year ended 31 March 2020 for finite life intangible assets. The capitalised
development expenditure to date totals $542,000, with additional development work expected to be incurred prior to 31 March 2021.
The newly capitalised finite life intangible assets are expected to generate economic benefits in 2021 and subsequent years.
3. REVENUE AND OTHER INCOME
3.1 REVENUE
Six Months Six Months 12 Months
30 Sep 2020 30 Sep 2019 31 Mar 2020
(Unaudited) (Unaudited) (Audited)
$’000 $’000 $’000
Revenue consists of the following items:
Point in time recognition:
Sale of goods – domestic sales
Finished goods 637 676 1,663
Ingredients 13 23 45
Sale of goods – export sales
Finished goods 439 863 1,445
Ingredients 4,587 3,545 7,290
Over time recognition:
Right to access 118 98 199
5,794 5,205 10,642
3.2 OTHER INCOME
Six Months Six Months 12 Months
30 Sep 2020 30 Sep 2019 31 Mar 2020
(Unaudited) (Unaudited) (Audited)
$’000 $’000 $’000
Grant income 142 58 181
Other income 2 5 10
Interest income 9 8 26
153 71 217

Notes to and Forming Part of the Consolidated Financial Statements continued
4. RECONCILIATION OF NET SURPLUS WITH CASHFLOWS FROM OPERATING ACTIVITIES
Six Months Six Months 12 Months
30 Sep 2020 30 Sep 2019 31 Mar 2020
(Unaudited) (Unaudited) (Audited)
$’000 $’000 $’000
NET SURPLUS FOR THE PERIOD 1,067 759 1,602
Adjustments for non-cash items:
Amortisation 73 145 256
Depreciation property, plant and equipment 69 125 156
Depreciation right of use assets 41 - 82
Foreign exchange loss / (gain) 1 27 9
ECL provision - - (6)
Loss / (gain) on fair value of foreign exchange contracts 22 - 3
Loss on disposal of fixed assets - - 19
Loss on disposal of intangible assets 14 - -
1,287 1,056 2,121
Movement in working capital
Trade and other receivables (6) 795 797
Prepayments 59 80 18
Inventories (263) (121) (308)
Trade payable and contract liability (599) 33 569
(809) 787 1,076
NET CASH INFLOW / (OUTFLOW) FROM OPERATING ACTIVITIES 478 1,843 3,197
5. SHARE CAPITAL
30 Sep 20 30 Sep 19 31 Mar 20
(Unaudited) (Unaudited) (Audited)
No. of shares $’000 No. of shares $’000 No. of shares $’000

Balance at the beginning
of the period (fully paid) 1,107,653,565 37,424 1,107,653,565 37,380 1,107,653,565 37,380
Shares issued pursuant to CEO Share plan - - - - - 44
Balance at the end of the period 1,107,653,565 37,424 1,107,653,565 37,380 1,107,653,565 37,424
6. CAPITAL COMMITMENTS, CONTINGENT ASSETS AND CONTINGENT LIABILITIES
There are no capital commitments or material contingent assets or contingent liabilities as at 30 September 2020 (30 September 2019:
$Nil).
7. INVESTMENT IN SUBSIDIARY
Subsidiary Percentage Held Balance Date Principal Activity
30 Sep 20 30 Sep 19 31 Mar 20
Blis Functional Foods Limited 100% 100% 100% 31 March Non-trading
Half Year Report14

Notes to and Forming Part of the Consolidated Financial Statements continued
8. SEGMENTAL REPORTING
8.1 Operating Segments
The Group is internally reported as a single operating segment to the chief operating decision-maker.
8.2 Revenue from major products and services
Six Months Six Months 12 Months
30 Sep 2020 30 Sep 2019 31 Mar 2020
(Unaudited) (Unaudited) (Audited)
$’000 $’000 $’000

The Group’s revenues from its major products and services were as follows:

BLIS® products 5,794 5,205 10,642
Non-core business 153 71 217
Total Revenue 5,947 5,276 10,859
Non-core revenues include interest received, grant revenue and contract manufacturing revenue of non BLIS® branded products
8.3 Revenue from major products and services
Revenue from external Customers Non current Assets
Six Months Six Months 12 Months Six Months Six Months 12 Months
30 Sep 20 30 Sep 19 31 Mar 20 30 Sep 20 30 Sep 19 31 Mar 20
(Unaudited) (Unaudited) (Audited) (Unaudited) (Unaudited) (Audited)
$’000 $’000 $’000 $’000 $’000 $’000
New Zealand 651 707 1,708 1,650 1,459 1,312
Asia Pacific (excl. NZ) 511 1,061 2,010 - - -
Europe, Middle East & Africa 1,288 2,446 3,964 - - -
North America 3,344 991 2,960 - - -
Total Trading Revenue 5,794 5,205 10,642 1,650 1,459 1,312

Grant revenue 142 58 181 - - -
Other revenue 2 5 10 - - -
Interest received 9 8 26 - - -
Total Revenue 5,947 5,276 10,859 1,650 1,459 1,312
Revenues for the six months to 30 September 2020 include $2,818k, $1,282k, and $409k, which arose from sales to the Group’s three
largest customers.
Revenues for the six months to 30 September 2019 include $2,414k, $700k, and $597k, which arose from sales to the Group’s three
largest customers.
Revenues for the year ended 31 March 2020 include $3,923k, $2,190k and $1,034k which arose from sales to the Group’s three largest
customers.
9. SUBSEQUENT EVENTS
There were no subsequent events post 30 September 2020 (2019: nil).
Blis Technologies Limited15

Half Year Report16Half Year Report16

Blis Technologies Limited17
Company
Directory.
Company number
1042367

Issued capital
1,107,653,565 Ordinary Shares

Registered office
Blis Technologies Limited
81 Glasgow Street, South Dunedin
Dunedin 9012

Shareholders
Listed on the NZX Main Board

Share registrar
Link Market Services Limited
Deloitte Centre, 80 Queen street
Auckland

Directors
A Offen
G Plunket
A Balfour
Dr B Richardson
Dr A Stewart

Chief executive
B D Watson

Auditors
Deloitte Limited
PO Box 1245
Dunedin

Bankers
Bank of New Zealand
Dunedin

Solicitors
Anderson Lloyd
Private Bag 1959
Dunedin 9054

Downie Stewart Lawyers
PO Box 1345
Dunedin 9054

Goldsmith Law
PO Box 40
Dunedin 9054

Website
www.blis.co.nz
Facebook
https://www.facebook.com/BLISTechnologiesLtd/
Instagram
https://www.instagram.com/blistechnologies/
Blis Technologies Limited17

Half Year Report18
Physical Address
Blis Technologies Limited
81 Glasgow Street
Dunedin 9012
Postal Address
PO Box 2208
Dunedin 9044
New Zealand
Email
info@blis.co.nz
Telephone
+64 3 474 0988
www.blis.co.nz

---

19 November 2020
Strong HY21 performance despite challenging market conditions
Financial performance highlights
1

• Revenue of $5.8m, up 11%
• Net surplus of $1.1 m, up 41%
• North America sales up 237%
• BLIS® branded finished product sales through online channels up 128%

Operational performance highlights
• New distribution relationship with Purity Life for upcoming Canada launch
• New agency and distribution agreement with RooLife to support ramped up cross border
eCommerce activity
• UltraBLIS™ online launch in New Zealand
• New skincare product format finalised

In the first six months of the 2021 financial year Blis Technologies has delivered solid revenue
growth and profitability despite challenging selling conditions in all markets as a result of the effects
of the COVID-19 pandemic.
Trading revenue for the six months ended 30 September 2020 (HY21) increased $0.6m (+11%) to
$5.8m compared to the same period in the prior financial year. Of note is the strong revenue growth
in BLIS® branded finished products being achieved online through our own website and on the
Amazon US platform.
Across our regions we have seen mixed revenue performance based on the sales channel mix. In
those regions where we have a greater reliance on either direct selling or the online sales channels,
we have seen very strong performance. However, in markets where we are more reliant on the
pharmacy retail channel the impact of COVID lockdowns and overall impact on retail foot traffic has
seen softer performance. This has been particularly evident in Europe but also in Australasia where
our growth momentum has been impacted.
Total expenses of $4.9m were up 8% on the prior period. The increase is principally due to higher
investment in the R & D pipeline together with increased market development initiatives across
eCommerce channels in particular on Amazon in the USA.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased $0.2m (+23%) to
$1.3m.

1
Changes are compared to performance for the same period last year

Blis Technologies Limited: 81 Glasgow Street, South Dunedin 9012, PO Box 2208, Dunedin 9012, New Zealand
T:+64 3 474 0988 E: info@blis.co.nz W: www.blis.co.nz
Net Profit for the period was $1.1m, an increase of $0.3m (+41%).
As at 30 September 2020, the Company held a net working capital position of $4.8m. The net
cashflows from operating activities are a $0.5m inflow resulting in a cash balance as at 30 September
2020 of $3.1m.

Trading conditions
The COVID environment has changed our trading environment in both positive and negative ways.
Key challenges for HY21 have included:
• COVID-linked impacts including reduced air freight capacity to key overseas sales markets
and reduced retail foot traffic for over the counter sales in pharmacies.
• Delays finalising Health Canada product approvals – Based on COVID related workload at
Health Canada, normal timelines and performance standards were suspended leading to
delays in finalising final product labelling approvals.
On the upside we have seen a strong lift in our finished product online sales and sales to our
ingredient customers who sell direct to consumers. These impacts are most evident in our US sales
performance which now represents our largest revenue contributor, overtaking Europe during the
half year. Along with this we have seen strong consumer interest in our product range as buyers
have searched for proven immunity solutions.
• BLIS® online sales growth + 128%
o BLIS.co.nz + 91%
o Amazon USA platform +175%

In regions where we have traditionally been strong in the pharmacy channel the trading conditions
are more challenging. It has been widely reported that based on lockdowns and shifting shopping
patterns, foot traffic to retail locations is down around the world. In line with this we have seen
weaker sales in our pharmacy-based channel, however we have seen recent evidence of a recovery
across most regions along with our customer base adapting their selling models to focus more on
direct to consumer sales.

Regional performance
North American sales +237% to $3.35m
The strong rate of growth in North American sales was on the back of both strong BLIS® finished
goods sales on Amazon USA and strong ingredient sales. Amazon USA represents an important
growth driver for the company, not only are we seeing growth across our existing BLIS® finished
goods portfolio, we have now also launched UltraBLIS™ on this platform from October. Our
ingredient sales in North America have also grown strongly with virtually all of our customer base in
this market focused on either direct selling or online selling.
Europe, Middle East sales -47% to $1.3m
Our customer base in this region has typically focused on the pharmacy retail channel which has
seen a dramatic downturn based on COVID lockdowns across Europe. These challenging market
conditions have meant that normal orders to support a winter stock build that would have occurred

Blis Technologies Limited: 81 Glasgow Street, South Dunedin 9012, PO Box 2208, Dunedin 9012, New Zealand
T:+64 3 474 0988 E: info@blis.co.nz W: www.blis.co.nz
in the 2
nd
quarter have been delayed until the 3
rd
quarter. Overall, we expect sales to recover to be
broadly in line with normal winter stock builds.
Asia-Pacific sales - 35% to $1.2m
We have seen a significant reduction in foot traffic across Australia and New Zealand pharmacy
channels. Along with this it has been widely reported that both Australia and New Zealand have seen
an extremely mild cold and flu season which typically drives significant pharmacy foot traffic over
winter. For the 12 months to 30 September the New Zealand pharmacy throat category sales were
down 23% on the previous 12 months. Pleasingly our products have performed well, with
ThroatGuard Pro™ remaining the top selling throat lozenge in this channel*. In the Japan market we
have seen good growth with the customer base typically selling direct to consumer.

BLIS® branded finished goods
Revenue breakdown:
Ingredients +28% to $4.6m
Finished goods -31% to $1.1m
Growing the sales of branded finished goods is a strategic priority for Blis. By developing the BLIS
PROBIOTICS™ brand we build a strong, direct relationship with the end consumer and generate sales
with a higher overall margin. While the strong trend to online sales has supported this goal, the
impact of lockdowns on pharmacy retail has impacted the growth momentum in markets where we
have focused on the pharmacy channel.

Market growth initiatives
UltraBLIS™

Late in FY20 we launched UltraBLIS™ through our own online website. This unique product offer is
based on BLIS K12™ and two other strains with an immunity evidence base and has quickly become
our best-selling product through this sales channel. From September we moved to the next phase of
the product launch with UltraBLIS™ being available in the pharmacy retail channel in New Zealand.
Launches are planned for the next 6 months and will include release on Amazon USA and on our
Chinese cross-border e-commerce platform.

Canada
In August we finalised an agreement with Purity Life Health Products LP (Purity Life) for the
distribution of BLIS branded products into the pharmacy and health store retail channels in Canada.
Unfortunately, due to COVID related restricted working conditions in Canada and increased
workload, there were significant delays in receiving Health Canada approvals for final packaging
beyond normal performance standards established by Health Canada. With the approvals now
granted, we can progress with our plan to launch in the 4th quarter of this financial year.

Blis Technologies Limited: 81 Glasgow Street, South Dunedin 9012, PO Box 2208, Dunedin 9012, New Zealand
T:+64 3 474 0988 E: info@blis.co.nz W: www.blis.co.nz
China Daigou and Cross border eCommerce (CBEC)

COVID related restrictions on international travel has resulted in a dramatic decline in the Daigou or
re-seller market. As a result, we have reassessed our strategy and partner search with a focus on
cross border e-commerce selling into China. An agreement with ASX-listed RooLife Group Limited
has been finalised for digital marketing, eCommerce operations and logistics support in China.
RooLife has proven trusted channels to market in China and provides support across platform and
mobile development, digital marketing, eCommerce, online and offline sales and payment solutions
in China. RooLife will implement the launch of BLIS PROBIOTICS™ on Alibaba’s Tmall and Alipay
platforms together with providing brand building activity through social media and engagement with
Chinese influencers. This activity will provide a strong base for our Tmall Flagship store launch in the
4
th
quarter of the financial year.


R&D pipeline
Ongoing investment in our pipeline is prioritised to delivering market leading probiotic-based
solutions across our target health and wellness categories:
• Upper Respiratory /Immune health
• Dental health
• Skincare and personal care

In dental health we have seen growth in consumer interest for both bad breath solutions as well as
solutions for teeth and gum health. We see exciting opportunities to drive innovation in the category
based on our unique probiotic strains and, during the half year, have continued to progress novel
formulations within our development programme.

Our skincare development programme has continued to progress at a pleasing rate. With extensive
market research undertaken in both New Zealand and California delivering positive consumer
feedback, we have now finalised the final product format and moved to detailed planning for the
launch of our first skincare offer. We believe the skincare market provides a very attractive growth
opportunity for the company.

Environmental, Social and Governance (ESG) practices
To support our commitment to robust ESG practices, an ESG Committee has been established,
comprising staff from across the company. The Committee is tasked with identifying where change
can be made that is meaningful and relevant to our stakeholders. By embedding and monitoring
these changes we will be able to start a programme of reporting that provides greater transparency
for stakeholders and complies with the future requirements for climate reporting. Our annual report
will provide a full update on priorities and our progress across the following focus areas:
• Advancing health and wellbeing
• Be a valuable contributor to society
• Reduce our environmental impact
• Be a significant contributor to an innovation economy




Outlook
The COVID pandemic has impacted our business in a variety of ways, however we have been able to
maintain growth and continue to progress of both new market and R&D pipeline opportunities that

Blis Technologies Limited: 81 Glasgow Street, South Dunedin 9012, PO Box 2208, Dunedin 9012, New Zealand
T:+64 3 474 0988 E: info@blis.co.nz W: www.blis.co.nz
set us up for a strong second half for FY21 and beyond. Consumer demand remains strong however
the channel purchase preference has shifted strongly to online. Our customer base and our own
BLIS® branded finished products are well positioned for this change in buyer behaviour.
The second half of the FY21 year will see the Canadian market launch as well as execution of key
elements of our CBEC channel focus including the launch of our Alibaba Tmall flagship store. We are
excited by the early success of our new UltraBLIS™ product and will launch the product on Amazon
and into CBEC prior to March 2021.
Based on continued growth in product sales, investment into new markets and support of the R&D
pipeline we reaffirm our guidance of sustained profitable growth while maintaining an EBITDA
similar to the $2.1m earned in FY20.


Ends

For further information, please contact:

Brian Watson
CEO
+64 27 705 9133


About Blis Technologies Ltd

Delivering proven health benefits through evidence-based, advanced probiotics
Blis Technologies Ltd is an NZX-listed manufacturer of advanced probiotic strains that go beyond the gut. Combining
innovation with evidence-based research and the highest quality production controls enables the delivery of probiotic
solutions for specific health targets including throat health, halitosis (bad breath), immune support and teeth and gum
health. BLIS® products are sold throughout New Zealand and in Australia, Asia, Europe and the USA. More information
about Blis Technologies Ltd can be found at www.blis.co.nz.

---

Results announcement
for Equity Security issuer



Results for announcement to the market
Name of issuer Blis Technologies Limited
Reporting Period 6 months to 30 September 2020
Previous Reporting Period 6 months to 30 September 2019
Currency NZ dollars
Amount (000s) Percentage change
Revenue from continuing
operations
$5,794 11%
Total Revenue $5,947 13%
Net profit/(loss) from
continuing operations
$1,067 41%
Total net profit/(loss) $1,067 41%
Interim/Final Dividend
Amount per Quoted Equity
Security
The Company does not propose to pay a dividend to its
shareholders
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.0048 $0.0033
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to the Chair and Chief Executive’s Report in the
accompanying unaudited financial statements.
Authority for this announcement
Name of person

authorised
to make this announcement
Richard Wingham
Contact person for this
announcement
Richard Wingham
Contact phone number 021 284 0446
Contact email address richard.wingham@blis.co.nz
Date of release through MAP

19 November 2020

Unaudited financial statements accompany this announcement.