The Zoono Group Ltd (ASX: ZNO) share price took flight in trading today. This came after the company released its quarterly activities report.
At the end of Thursday’s session, shares in the antimicrobial solutions company were 26.55% above their previous close, hitting 50 cents. However, Zoono reached an intraday high of 56.5 cents apiece earlier in the afternoon.
Let’s take a look at what had investors excited today.
Improving margins and continued expansion
Investors were bidding the Zoono share price higher with ferocity on Thursday. More than 2.5 million shares were traded, which is above average for the sanitiser company.
According to the release, Zoono achieved NZ$7.5 million in invoiced sales during the first quarter. However, this consisted of NZ$4.7 million of delivered sales, with the other NZ$2.8 million yet to be shipped.
Despite the company’s sales falling from its COVID-19 peaks, it continues to push the expansion of its markets and customers.
Importantly, Zoono is focusing on regions where it is uneconomical for other foreign companies to compete. This has assisted in lifting the company’s gross profit margin from 59% to 71%, which can only be a positive for the Zoono share price.
Additionally, it is aiming to obtain a direct presence in all major European Union markets in the next 6 to 9 months. Furthermore, following a successful trial with Keolis Group in France, Zoono’s products will be used across 27 districts where transport systems operate. On top of this, several additional major new customers in France are expected to be signed this quarter.
Positively, Zoono suggested it is unlikely there will be a need to raise capital in the foreseeable future. At the end of the quarter, the company held NZ$10.1 million in cash equivalents.
Zoono share price snapshot
Taking a look at the 1-year chart, we can see the Zoono share price has been in decline since July 2020. The company received a massive boost to its valuation amid the need for additional sanitisation due to COVID-19.
However, sales have dwindled in sync with the increase in vaccinations around the world. In turn, the Zoono share price is down 67% over the past year.
Finally, the company trades on a price-to-earnings (P/E) ratio of 15.4 times based on its 12-month trailing earnings.
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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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