- Zoono Group (ZNO) has released its quarterly report for the December quarter — which saw an almost-500 per cent bump in shares
- The strong quarter came off the back of the Zoono Z71 product which piqued the interest of a Chinese distributor
- The product was found to be extremely effective in treating African Swine Flu
- Zoono has brought in almost as much revenue in the past half-year as the full 2019 financial year
- The company, however, is still cash-flow negative
- After a small morning spike, Zoono shares declined and closed just under 4 per cent down at 54 cents each
Zoono Group (ZNO) has released a quarterly report for the three months that saw its share price increase by almost 500 per cent.
The main focus of the announcement was, of course, the Zoono Z71 product which was found to be extremely effective in treating African Swine Fever (ASF).
The success of the product was announced to the market in early December, causing a 25 per cent spike in shares. A Chinese distribution deal locked in just one day later brought about another 25 per cent increase.
Importantly, Zoono has been able to monetise new opportunities created by Z71. In terms of raw revenue, Zoono has reported NZ$1.72 million (A$1.65 million) over the first half of the 2020 financial year. For comparison, revenue for the full 2019 financial year was only slightly more than this, coming in at NZ$1.78 million (A$1.71 million).
With a strong need for ASF treatment products in the global agriculture sector, Zoono said it is "confident it can become part of any country's bio-security protocols".
On top of the ASF treatment distribution deal, Zoono was also invited to take part in Chinese hospital and government laboratory trials to test how effective its products are in treating the Severe Acute Respiratory Syndrome coronavirus (SARS). The company was brought on board following several outbreaks of SARS across China.
The quarter also saw Zoono sign a distribution deal with fellow ASX-listed Apiam Animal Health (AHX) through its subsidiary Zoono Poultry.
In terms of cash flow, however, Zoono is still bleeding cash at a steady rate. The company took in NZ$588,000 in customer receipts but expenses reached NZ$1.14 million over the quarter — resulting in a negative cash flow of NZ$556,000.
Of course, with all that happened for the company over the past quarter, the negative cash flow is not a major concern for shareholders.
Still, after a small morning spike, Zoono shares declined slightly throughout the day's trading session. At market close, shares were down 3.60 per cent and worth 54 cents each.