Refocus strategy on core business

14 July 2022
Refocus strategy on core business
The board and management of Blis Technologies Limited (NZX:BLT) have undertaken a review of the
company’s strategy and business model following the disappointing performance in FY22.
Through focused R&D, Blis has a proven track record in delivering innovative probiotic solutions to
the global market. A renewed focus on this core business primarily for global B2B partners will drive
scale and return to profitability.
Blis Chair Geoff Plunket commented “While we remain committed to our company purpose
“Developing breakthrough probiotic solutions for the health and wellbeing of global consumers” the
FY22 result has led us to consider whether a more tightly focussed strategy is appropriate. By sharply
critiquing every aspect of Blis’ operational and financial performance we have identified what we do
best and how we are best to deliver to our purpose”.
Blis will make a shift to a narrower operational focus on Business to Business (B2B), establishing
partnerships with proven industry operators to commercialise its proprietary technology. This will
see Blis move away from direct selling to consumers, other than in New Zealand and the US Amazon
platform by the end of the FY23 year.
Blis Chief Executive Brian Watson said “While this represents a change from the current operating
model, we will continue to undertake many of our existing activities. We have identified which
markets and channels continue to work well and deliver margin for us. In other markets, we will seek
to develop partnerships with parties who are better placed long term to develop those
opportunities”.
“Our B2B focus on international markets will see us looking to leverage other companies’ strengths
in the B2C market while we focus Blis’ business on growing and delivering a portfolio of ingredients
and finished product formats that those companies can take to market”.
Probi licensing offers supply blueprint
The relationship Blis established in mid-2021 with Probi represents a business model blueprint for
the new strategy. The licencing of BLIS K12™ and BLIS M18™ ingredient technology will allow us to
leverage Probi’s global customer base and market presence.
Ecommerce sales channels to continue
Over the last few years, profitable positions have been established for the BLIS PROBIOTICS™ brand
across ecommerce channels (BLIS.co.nz and Amazon USA) to complement the New Zealand retail
sales base, including daigou channel. These cost effective channels will be maintained.
Other B2C activity
B2C activity related to the Unconditional Skincare Co brand and the BLIS PROBIOTICS™ retail focus in
Canada will be transitioned out of Blis’ direct operations. The intention is to identify a partner to
take over the Canadian retail business. We see skincare licensing opportunities based on the existing
product innovation and future innovation pipeline.

Blis Technologies Limited: Ground Floor, 442 Moray Place, Dunedin Central, Dunedin 9016, PO Box 2208, Dunedin 9012, New Zealand
T:+64 3 474 0988 E: info@blis.co.nz W: www.blis.co.nz
Continued R&D focus
Our review identified Blis’ research and development programme as a core strength. We have
pipeline opportunities that will keep Blis at the front of probiotic innovation and represents
significant commercial opportunity to partners.
Resourcing review
These strategic changes require a review of resourcing and capability to be undertaken. Subject to
consultation a small reduction in staffing levels is expected. We anticipate that overall resourcing
changes will put us on track for a return to profitability.
W
orking capital position
Blis’ working capital position remains solid, with in excess of $8m in cash reserves the company is
well placed to support this strategic change.
Q1 FY23 result
We are also pleased to report the unaudited results for the quarter ending 30 June 2022. Revenue
for Q1 FY23 of $2.3m is 29% growth over the same period last year, with an EBITDA loss of $0.3m.
An update will be provided at the Annual Shareholder Meeting to be held on Thursday 21 July 2022.
Ends
Fo
r further information, please contact:
Brian
Watson or Geoff Plunkett
CEO Chair
+64 27 705 9133+64 21 229 8886
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, teeth and gum health and skin health. BLIS® products are sold throughout New Zealand
and in Asia, Europe and the USA. More information about Blis Technologies Ltd can be found at
www.blis.co.nz.