EZZ Life Science widens sales and distribution network
EZZ Life Science has reported a solid end to 2021 as its distribution network expands online.
In a periodic investor update, genomic life science company EZZ Life Science (ASX: EZZ) announced it has achieved several commercial milestones in the last three months of 2021 including the setting of ambitious growth targets for 2022.
Interestingly for investors, the company opted to reward its share register by paying out a total of $189,000 in dividend payments.
Most notable on the company’s list of achievements is the successful maiden launch of its online shopping platform and e-commerce hub for its proprietary and Eaoron-branded products.
The Eaoron brand has been particularly attractive to both Australian and Chinese customers, as a leading facial skincare brand developed by EZZ’s partner company Australian United Pharma.
Currently, the brand is comprised of 20 different products divided into five product segments with EZZ Life Science acting as the brand’s exclusive wholesale distributor.
Over the Christmas break, a notoriously active time for retail sales, the genomic life science company reported it was closed for three weeks, yet still managed to post an $80,000 sales revenue boost compared to the previous quarter.
EZZ said it plans to continuously develop new products to meet consumer demand while continually adding innovations to its existing product portfolio.
The life science company is currently offering over a dozen products split across four distinct product categories: genetic longevity, human papillomavirus (HPV), helicobacter pylori (HP) and weight management.
Moreover, the life science company added two new products to its supplement portfolio in Q4 2021, in tandem with establishing a new online shopping platform for all of its products.
In December last year, EZZ launched its new biotic EnGastro and biotic HHP support probiotic capsules, promoting healthy digestion and immune system function, alleviating diarrhoea and reducing symptoms of irritable bowel syndrome (IBS).
Solid cash position
In a statement to the market, EZZ said it recorded a $325,000 cash drawdown in the last quarter of 2021 due to a “dividend payout and manufacturing cost payments” for prior months, although the company retained a “solid cash position” with almost $9 million in cash reserves.
In November 2021, the company’s chief executive officer and co-founder Mark Qin revealed EZZ was planning to extend its reach into “healthcare solutions based on genomics research” given the possible synergies with the company’s broader ambitions of treating digestive bacteria, viral infection and weight loss.
As a field of study, genomics focuses on the study of genes, associated proteins and other particles required to appropriately maintain DNA. According to researchers in the field, applications of genomic technologies offer opportunities to improve healthcare outcomes in multiple areas including genetic diagnosis, personalised medicine and gene therapy.
In a bid to boost sales and distribution, EZZ said it had contracted four international distribution agencies to its customer list in the United States, Singapore and China as well as secured an agreement with Chemist Warehouse China.
According to EZZ, the flagship Chemist Warehouse store in China placed its first order in late November. In total, the quartet of new distribution agencies contributed a total 10% increase in revenue in the last quarter of 2021.
The largest outgoings in Q4 2021 were $1.38 million to fund “additional market expansion” and $2.5 million to fund its product manufacturing process.
In terms of personnel changes, EZZ made a major addition by appointing Glenn Cross as its new chairman.
Mr Cross brings over 40 years of experience in the life science sector domestically and internationally, including two decades of experience in a senior executive capacity having formerly served as both chief executive officer and chief operating officer of AusBiotech for over 13 years.