EZZ Delivers Strong Fiscal 21 Operating Performance, Declares Dividend

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SYDNEY, September 30, 2021 / PRNewswire / – EZZ Life Science Holdings Limited (ASX: EZZ), a producer of consumer health products and the exclusive wholesale distributor of EAORON skin care products for pharmacies, supermarkets and retailers in Australia and New Zealand, presents its statutory annual accounts for the period ended June 30, 2021 (FY21) and announces its first full-year dividend.

Strong points:

  • Revenue up 29% at $ 22.3 million, exceeding the expected growth target of 25% as disclosed in the results presentation 1H FY21
  • EBITDA[1] up 66% to $ 2.7 million
  • Net income after tax up 28% to $ 2.0 million
  • Gross profit margin increased from 23% to 56%
  • Well funded with $ 8.9 million cash and debt free
  • Earnings per share increased 13% for 5.98 cents
  • First dividend payable to 0.45 cent per share with a registration date of November 10, 2021
  • FY22 strategy supported by new product development, sales in geographic areas and expanded distribution channels; adding new verticals and evaluating other opportunities for sustainable growth.

[1] Excluding other income related to government subsidies and the assumption of a management fee

Provide strong performance in FY21 under challenging conditions

EZZ achieved strong operational performance during the year for June 30, 2021, despite significant disruption due to COVID-19. Turnover increased by 29% for $ 22.3 million in FY21 (FY20: $ 17.3 million) generated by EZZ brand supplements and EAORON brand skin care products. Revenues from EZZ branded products increased by $ 0.8 million To $ 11.4 million in FY21, accounting for 51% of FY21 turnover, while EAORON brand products contributed 49% of turnover.

A number of strategic initiatives led to the growth in FY21 revenue, around the priority areas of direct-to-consumer marketing, omnichannel marketing, product development and market expansion.

Direct to consumer: EZZ’s flagship online store opened with Tmall Global in China in July 2020, starting the distribution of EZZ branded health supplements to consumers directly, and without conflict with existing customer agreements with retailers.

Omnichannel Marketing: The increased use of impactful omnichannel marketing strategies has contributed to brand awareness and share of voice. EZZ’s advertising and marketing expenses were intentionally increased – by $ 1.6 million To $ 7.8 million.

Product Development: Driven to Growth – EZZ expanded its range of dietary supplements by introducing 11 new products during the year. Like a June 30, 14 of storage units were marketed under the EZZ brand compared to three at the start of the year.

Market Expansion: EZZ accelerated the expansion of its distribution channels in hypermarkets and supermarkets, creating exciting new opportunities to increase sales in fiscal year 21. In June 2021, EZZ and EAORON branded products were stocked by Costco in 13 stores in Australia and by MINISO in 14 stores in Australia. Australia.

Profitability

In FY21, EZZ’s gross profit margin increased from 23% to 56% largely due to the shift in revenue mix towards new EZZ branded products. The average gross profit margin for EZZ brand products was 82% compared to the average gross profit margin of 29% for EAORON brand products. The average gross profit margin for EAORON branded products increased from 20% to 29%, mainly due to producer EARON, promotional pricing from Australian United Pharmaceuticals Pty Ltd on certain products and EZZ’s focus on distribution of higher margin products under the EAORON brand.

EBITDA[2] increased by 66% compared to $ 1.6 million To $ 2.7 million in June 30, 2021. EZZ’s net profit after tax increased by 28% compared to $ 1.6 million To $ 2.0 million for FY21. Earnings per share increased 13% compared to 5.29 cents To 5.98 cents.

[2] Excluding other income related to government subsidies and the assumption of a management fee

Cash balance

EZZ maintains a strong cash position of $ 8.9 million like a June 30, 2021 which includes the product of the $ 6.0 million initial public offering in March 2021.

First dividend

Given EZZ’s performance and its strong capital position, the Board of Directors is pleased to declare a fully paid dividend of 0.45 cent per share. This is EZZ’s first dividend as a listed company, following its March 2021 ASX initial public offering.

Commentary and outlook FY22

CEO of EZZ, Fernando Rodriguez, commented, “We are delighted to report today EZZ’s strong results for fiscal 21 and to mark our first dividend as an ASX listed company. It follows a year of disciplined growth, delivering our strategic goals through an expanding network of consumer channels. “

“EZZ enters FY22 well positioned to take advantage of multiple targeted growth opportunities. We will continue to bexpand our product line, expand into other geographies and establish new strategic relationships. We will also look to enter new verticals, where we know we can better meet consumer demand and continue to assess other opportunities to generate sustainable growth. “

This notice has been authorized to be provided to ASX by the Board of Directors of EZZ Life Science Holdings Limited.

For more information, please contact:

Investor Relations
https://www.ezzlife.com.au/investors
[email protected]

About EZZ Life Science Holdings

EZZ Life Science (ASX: EZZ) is a consumer products company headquartered in Sydney, Australia. EZZ develops, produces and distributes its own line of consumer health products under the EZZ brand to retailers and consumers through online and offline channels. It is also an exclusive wholesale distributor of EAORON skin care products for drugstores, supermarkets and retailers in Australia and New Zealand. For more information: https://www.ezzlife.com.au

EZZ sells products in the EZZ and EAORON health, wellness and supplement lines

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