Blis Technologies has revised down its operating earnings forecast for 2021. Photo / 123RF
Blis Technologies has revised down its operating earnings forecast for 2021. Photo / 123RF
Blis Technologies has halved its 2021 operating earnings forecast due to higher costs and a return to more normal trading conditions following a Covid-driven spike in sales towards the end of its previous financial year.
Auckland-based Blis, which makes probiotic health products, said that based on latest sales forecasts andplanned investment for the final quarter to March, its guidance for the 2021 year was for revenue similar to 2020 or at the low end of single digit growth.
It said earnings before interest, tax, depreciation and amortisation (EBITDA) for the March 31 year was now expected to be in the range of $1 million - $1.3 million, compared with a previous guidance, which was for EBITDA to be similar to the $2.1m earned in 2020.
"The expectations for stable 2021 sales revenue is against the backdrop of 2020 revenues which saw a 29 per cent increase in sales over the 2019 financial year, with full year 2020 fourth quarter sales of $3.1m," it said.
Blis had previously signalled it had a strategy of investing for growth.
"Delivery on this strategy is expected to lead to a reduction in EBITDA for 2021 due to increased costs associated with building Blis' capacity for future commercialisation opportunities, including the launch of the skincare range," chief executive Brian Watson said.
"The board and management continue to closely monitor trading conditions while balancing longer term challenges and opportunities."
The company last month launched a Blis Probiotics store on Alibaba's Tmall Global marketplace tmall.com - China's largest cross-border marketplace - which it said would build brand awareness.
