Dunedin-based biotechnology company Blis Technologies has posted its seventh consecutive loss - up 187% from the previous year's $482,000 loss to $1.38 million.
While the company remains well financed after a $3 million equity-raising in 2010, since 2005 it has cumulatively lost more than $6.3 million, the latest $1.38 million being its largest loss.
Blis has developed oral probiotics for sore throats, bad breath and to boost health after other treatments, and has markets around the world.
Craigs Investment Partners broker Peter McIntyre said the main problems during the past year had been the lack of an expected "uptake" in sales in the US, the loss of a co-development of infant formula with industry giant Nestle; and the strength of the New Zealand dollar against the US dollar.
"It has been a tough year for them.
They had expectations of greater [US] sales , which didn't eventuate." While losing Nestle as a strategic backer was a "big blow" for Blis, Mr McIntyre said the company had the funds in place to continue from the $3 million capital-raising.
In its full year to March annual report, chief executive Barry Richardson said that "overall, the 2011 operating and financial performance disappointed".
During the year, fixed costs had been cut and Blis management were continuing to reduce variable costs in manufacturing, Mr Richardson said.
"These initiatives are expected to reduce the operating deficit in the 2012 financial year." Because it was taking longer to build sales in the United States, - part of an estimated $US25.6 billion ($NZ32.6 billion) global probiotics markets by 2015, the company directors were considering "alternative sources of funds", which he did not elaborate on.
He said while new products were launched during the year, the global financial crisis and lack of any "significant cough and colds season" in the US meant slower sales growth,While Blis trading revenues increased from $1.23 million to $1.35 million, cashflows from operating activities was up from $398,000 to $687,000; dividend payments more than doubled to $361,000 and a safety study cost $214,000.
