Dunedin-based biotechnology company Blis Technologies has posted a more than $800,000 loss for the half-year to September, largely because of a temporary lull in product promotion in the United States which slashed sales by more than $670,000.
Following $3 million equity raising in 2010 and a further $1.51 million, the latter through a share placement and share purchase plan in September this year, the company has funds to continue its growth strategy, research, acquisitions and provide extra working capital, it said in a statement to markets yesterday.
Blis reported a "disappointing" loss of $828,000, before tax and finance costs for the six months to September, the company reported.
The realignment of international distribution arrangements saw a lull in branded ingredient sales, which was further exacerbated by market conditions generally; and there had been a change in sales strategy of one of Blis' largest US retailers which meant market promotion of its product was suspended pending completion of licensing arrangements.
"As a consequence, our United States sales fell from $682,000 to $8000. Sales resumed into the US in October, but meaningful volumes are not anticipated until our new distributor is appointed in December," the company said.
New Zealand trading revenue was up by 76% from $124,000 to $218,000, after the BLIS Throat Guard range moved to third overall in New Zealand pharmacy sales, further boosted from the two-months sales contribution from subsidiary BLIS Functional Foods, following acquisition of the Gourmet Ice-Cream Co.
In mid-May, Blis posted its seventh consecutive loss, up 187% from the previous year's $482,000 loss to $1.38 million.
Although the company remained well financed after the $3 million equity raising in 2010, since 2005 it has cumulatively lost more than $7.1 million, the $1.38 million previous full-year loss being its largest.
