EZZ Life Science posts solid quarter as sales return to pre-pandemic levels

EZZ Life Science ASX quarter sales 2022 China Tmall Global
EZZ Life Science closed out the March quarter with more than $10 million cash in the bank.

Continuing to focus on genomic research and development and intent on “addressing pivotal human health challenges”, EZZ Life Science (ASX: EZZ) has updated the market regarding its recent financial performance for the March quarter (Q3 FY2022), as sales return to pre-pandemic levels.

The genomic life science company announced that it generated $4 million in customer receipts and recorded operating cash inflows of $1.5 million in Q3 FY2022.

According to EZZ Life Science, its largest revenue receipt – a fee of $680,000 – came from Chemist Warehouse in March.

Compared to the same period last year, EZZ Life Science said its sales and financial performance were “gradually recovering back to pre-pandemic levels”.

The gradual recovery resulted in the company boosting its cash balance by $1.4 million during the quarter to close at $10.4 million.

With respect to operating cash inflow, EZZ Life Science attributed its $1.5 million result to an increase in the receipts from customers, a decline in advertising and marketing activities as a result of the updated marketing strategy, and a decrease in deposit payments to suppliers.

The company added that product demand was “gradually increasing” and contributed to its “solid” cash position.

According to regulatory filings, the two largest expenditures in Q3 2022 were $2.46 million in costs incurred relating to its manufacturing facility and $1.37 million spent on additional market expansion.

“EZZ Life Science is passionate about investing in the future of consumer health through the development of e-commerce and distribution of high-quality products via omnichannel models across Australia, New Zealand, China and worldwide,” the company said.

New products and formulations

To boost its market performance throughout 2021 and early 2022, EZZ Life Science developed two new products, recently listed on the Australian Register of Therapeutic Goods (ARTG).

More specifically, its EZZ Man Performance and EZZ Sugar metabolism products were formulated to support sperm health and “motility” – a term used to describe the contraction of the muscles that mix and propel contents in the gastrointestinal (GI) tract. The products are aimed at regulating sugar metabolism to help maintain healthy blood sugar levels with both set to be made available for sale in Q4 2022.

In other areas of its business, EZZ Life Science currently produces and sells a range health supplements, food and probiotics as well as skincare products seeking to address four key human health challenges: genetic longevity, human papillomavirus (HPV), helicobacter pylori, and weight management.

Additionally, EZZ Life Science said it would update the formulation of its Daily Energy and Wellbeing tablets with proanthocyanidins extracted from grape seeds to be included as a primary ingredient.

Proanthocyanidins are chemical compounds that give fruit or flowers their prominent colours. If properly extracted and consumed, they have been shown to provide antioxidant protection against heart disease and cancer.

Well-funded for growth

Previously, EZZ Life Science non-executive director and chairman Glenn Cross has spoken of the company’s journey to become a top-tier name in the Asia Pacific including Australia and New Zealand, with a core focus on genomic health fuelled by a bustling product development pipeline featuring healthcare solutions based on genomics research.

“Our skilled management teams will be briefed to drive long-term earnings growth and deploy best practice principles in operational execution through added capacity, employment development and more sustainable practice,’’ Mr Cross said.

On the marketing front, EZZ Life Science announced it had set up an international store alongside online media giant TikTok, as an alternate direct-to-consumer channel to Tmall Global with inventories expected to be delivered to its duty-free warehouse in Q4 2022.

With the strong cash flow during the recent quarter, EZZ Life Science is funded to accelerate its growth in the genomic health market.

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