The Zoono Group Ltd (ASX: ZNO) share price is zooming higher on Thursday after the release of its full year results.
At the time of writing the biotechnology company’s shares are up 7% to $2.68.
How did Zoono perform in FY 2020?
It certainly was an unforgettable year for Zoono and its shareholders in FY 2020.
Due to incredible demand for hand sanitisers and sprays because of the pandemic, Zoono’s sales went through the roof.
For the 12 months ended 30 June 2020, Zoono recorded revenue of NZ$38.3 million. This was up a staggering NZ$36.5 million from just NZ$1.8 million a year earlier.
It was even better for its operating earnings before interest, tax, depreciation and amortisation (EBITDA). After posting an EBITBA loss of NZ$2.4 million in FY 2019, Zoono swung to positive EBITDA of NZ$20.6 million in FY 2020. That’s a whopping 944.5% increase on the prior corresponding period.
And on the bottom line, Zoono reported a net profit after tax of $16.7 million for the 12 months.
In light of this strong result, the company has announced its maiden dividend of NZ$0.032 per share unfranked.
What were the drivers of its result?
Zoono’s Managing Director, Paul Hyslop, believes the result demonstrates increasing acceptance of the benefit of its long-lasting antimicrobial products, particularly during the current pandemic.
He said: “The second half of the year was outstanding. The team has done an amazing job keeping up with the unprecedented worldwide demand for our products.”
“Strong sales came from Australia and New Zealand in both the B2B and B2C markets. UK and Europe continue to deliver and, in Asia and China, we are making good progress. We have also recently bought back the US distributor and will be seeking to mirror the success of the UK operations in this region,” he added.
In addition to this, with distribution agreements being signed across the Middle East, Africa, and Asia, the chief executive believes “Zoono is becoming a true global company in the provision of antimicrobial protection.”
However, management has provided no guidance for the year ahead.
Overall, it will be interesting to see how much of these impressive sales can be replicated in FY 2021 or whether they are largely one-offs. Time will tell.
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