EZZ Life Science Holdings (ASX: EZZ) is heading into 2022 with a new chairman at the helm and plans to build on its successes of 2021 – eyeing more product growth and further international expansion.
Last month, the company welcomed esteemed life science professional Glenn Cross as chairman of its board.
Mr Cross has more than 40 years’ experience in life sciences and has held senior executive roles with both Australian and international companies.
His expertise is wide in the life sciences space, and he has worked in general management, sales, marketing, finance, distribution and manufacturing. He also has experience in human resources and product development.
Mr Cross says he is excited to support the EZZ team in the next stage of its dynamic growth plans.
“With its collaborations with world-class research institutions and its commitment to strategic integration, EZZ is well placed to further expand its business and pursue growth opportunities in the genomics area,” he added.
Consumer health product launch
As part of the company’s life science market strategy, it launched two new products late last year.
The products comprise the EZZ Biotic EnGastro capsule and the EZZ Biotic HHP support probiotic, which aim to assist with treating helicobacter pylori and irritable bowel syndrome (IBS) by promoting healthy digestive and immune systems.
EZZ acting chief executive officer Mark said the new products complement the company’s wider health and wellbeing range.
They are part of the company’s strategy to expand its product line to meet consumer-led demand in high-margin health and wellbeing segments.
Product sales rise as range expands
Closing out 2021 with a new chairman and product launches follows what EZZ describes as a dramatic 12 months of growth.
EZZ is focused on research and development of products using genomic technology to address four key health challenges in people: genetic longevity, human papillomavirus (HPV), helicobacter pylori and weight management.
Driving the upward momentum for EZZ in 2021 was “high growth” in its core products and new offerings including: EZZ Mixed Fruit Jelly, EZZ Male Boost Stay Energizer, EZZ NMN 150,000mcg, Daily Energy & Wellbeing, EZZ Super Fruits Beverage, EZZ Iron+ Jelly, EZZ JTN Immunity Plus, EZZ L-Lysine Growth, EZZ Biotic HHP Support Probiotic, EZZ Biotic Engastro capsule, EZZ Coffee Jelly, EZZ Sweet Dream gummy and EZZ Magic gummy.
While experiencing increased demand for its products, EZZ also expanded its distribution network, and developed an in-house online platform to become its main sales channel in the future.
Increasing presence in China
As part of its expanded network, EZZ substantially boosted its presence in China – recording more than $10.6 million in sales through Alibaba Group’s renowned Tmall platform since launching in August 2020 till December 2021.
As well as Tmall, EZZ’s products were also sold through other e-commerce channels including another Alibaba subsidiary Taobao, JD.com, plus more than 100 e-commerce providers and 200 hosts on Douyin – China’s version of social media platform TikTok.
Tmall and JD.com are China’s largest online retailers. Tmall accounted for almost 64% of all business to consumer transactions in China in 2020, while JD.com comprised almost 26% of that market.
Around 780 million consumers have been estimated to have purchased from Tmall just once.
JD.com has more than 550 million active customers a year and achieved US$114.3 billion in net revenues in 2020.
In addition to the e-commerce channels previously mentioned, EZZ also sold its products through China’s Chemist Warehouse, distribution channel through Micro-Net and is undertaking preliminary work to sell through Pinduoduo, We Media, and community group buying platforms.
Outside of mainland China, EZZ’s products are also available at more than 100 Sa Sa International Holdings’ stores in Hong Kong and Macau.
Sa Sa operates more than 200 retail stores in Hong Kong, Macau, mainland China and Malaysia and sells more than 700 product brands.
Market presence outside of China
During 2021, EZZ added other international distribution agencies, which enabled its products to be sold in the US and Singapore.
Across Australia and New Zealand, EZZ’s products are sold in more than 400 outlets.
ASX listing and solid FY2021 performance
EZZ was only admitted to the ASX in March this year after raising $6 million via the issue of 12 million shares at $0.50 each.
In line with its product expansion and increasing market penetration, the company reported revenue of $22.3 million for FY2021.
This was a 29% increase on FY2020 levels.
Accounting for 51% of this revenue was EZZ’s own branded products, which brought in $11.4 million in FY2021 compared to only $800,000 in FY2020.
Growth strategy for 2022
As 2022 unfolds, EZZ plans to increase its product range with a focus on genomic health and more precision supplements.
The company will also extend its international reach using online e-commerce and is actively targeting penetration of European, US and South East Asia markets.
While online e-commerce expansion remains a priority, EZZ plans to team up with Watsons to increase its offline market presence.
Watsons is a health and beauty chain with stores and pharmacies throughout Asia and Europe.