Business performance and year end guidance update

11 February 2021
Business performance and year end guidance update
Blis Technologies Limited’s (BLT:NZX) programme of investment in new markets and product
pipeline initiatives is the cornerstone growth driver for the business’ future success. Third quarter
activity supporting this strategy has seen several key projects reach finalisation with business
partners, leading to the announcement of product roll out programmes.
“Last month we launched the BLIS PROBIOTICS™ store on Alibaba’s Tmall Global marketplace
tmall.com
. As China’s largest cross-border marketplace, Tmall Global is the premier channel through
which overseas brands and retailers can directly reach Chinese consumers, build brand awareness
and gain valuable consumer insights. The store is the ideal market entry for introducing BLIS
PROBIOTICS™ to the Chinese market” said Blis Chief Executive, Brian Watson.
“Along with this we’ve received Health Canada approvals for our full product range. These approvals
were delayed due to COVID-19 but will enable Blis to launch the range in Canada in the 4th quarter
of this financial year”.
Both of these significant market developments occurred late in this financial year so will have limited
impact on the FY21 financial results but they are both expected to be important contributors to sales
in future years.
“Our new product development pipeline offers several exciting new probiotic based product lines.
We are in the late stages of launch planning for our skincare range with the first release to market
expected early in the new financial year. The product a “Live probiotic hydration serum” powered by
our unique patented strain BLIS Q24, will target the lucrative cosmetic market and has gone through
extensive market research in the US and New Zealand, receiving very favourable customer feedback
in both markets”.
The product will initially be launched in NZ direct to consumers supported by a high profile
multichannel campaign. Over time we intend to expand launch activity to the US and our China
Tmall global site. Skincare is seen as having the potential to be a significant future revenue driver for
Blis and we will look to bring to market other unique products to expand our presence in this
thriving category.
Year to date performance
Trading revenue for the 9 months ending 31 December 2020 increased 10% to $8.2m, compared
with the previous year. EBITDA increased 12% to $1.5m.
Results for the period
ended 31 Dec
Third quarter Year to date
FY21 FY20 Change FY21 FY20 Change
Trading revenue $2.4m $2.3m + $0.1m
+ 6%
$8.2m $7.5m + $0.7m
+ 10%
EBITDA $0.2m $0.3m - $0.1m
- 38%
$1.5m $1.3m + $0.2m
+ 12%

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

The third quarter of the 2021 financial year saw ongoing strong sales in the US market for both our
ingredient sales and our own BLIS branded finished products sold on Amazon. Along with this we
have continued to see signs of a recovery in our European business that was affected by lockdowns
through the middle of the year. Offsetting improved sales performance for the quarter, increased
costs associated with initiatives to support future growth contributed to EBITDA decreasing to $0.2m
from $0.3m in the third quarter of the 2020 financial year.
The 4
th
quarter
In the 4th quarter of FY20, we experienced a sharp uplift in demand related to the COVID-19
outbreak. In general, our customer base brought forward ordering through our distributors and
direct through our online sales presence. This reflected both panic buying but also a sustained
increased interest in immunity solutions.
In contrast this year we are expecting a more settled 4th quarter for FY21. We are seeing our
customers become conservative in their ordering and, despite ongoing uncertainty around the
world, there is an expectation that the supply chain provides flexibility to respond to just in time
orders. Equally we have seen delays in anticipated orders as our customers look to de-risk by
managing stock holdings.
Operating costs for 4
th
quarter of FY21 are forecast to increase relative to the preceding quarter with
further investment to support pending product and market launches, as well as increased supply
chain and sales costs associated with the new market activity.
Outlook for FY21
Based on latest sales forecasts and planned market and product investment activity for the final
quarter, guidance for the 2021 financial year is for revenue similar to FY20 or at the low end of single
digit growth. EBITDA is expected to be in the range of $1.0 - $1.3m.
This compares with previous guidance for FY21 of an EBITDA similar to the $2.1m earned in FY20.
The expectations for stable FY21 sales revenue is against the backdrop of FY20 revenues which saw a
29% increase in sales over the FY19 financial year, with FY20 fourth quarter sales of $3.1m.
Blis has previously signalled it has a strategy of investing for growth. Delivery on this strategy is
expected to lead to a reduction in EBITDA for FY21 due to increased costs associated with building
Blis’ capacity for future commercialisation opportunities, including the launch of the skincare range.
The Board and management continue to closely monitor trading conditions while balancing longer
term challenges and opportunities. The steadfast focus on the delivery of value enhancing growth is
unchanged.

Ends

For further information, please contact:

Brian Watson
CEO
+64 27 705 9133

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

About Blis Technologies Ltd

Delivering proven health benefits through evidence-based, advanced probiotics
Blis Technologies 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. Products can be
bought online at blis.co.nz, by searching for Blis probiotics at amazon.com and blis.tmall.hk

More information about Blis Technologies Ltd can be found at www.blis.co.nz.