
Highlights:
- Further strong interest in shelf-life extension technology
- Additional 8 supermarket groups and packaging companies going to trials
- Over 40 supermarket and packaging companies currently in discussions
Zoono Group Limited (Company) (ASX: ZNO) today releases its Appendix 4C for the quarter ending 31 December 2024. In conjunction with that release, Zoono provides the following quarterly activities report to update shareholders and the market on developments during the quarter and on the Company’s outlook.
Zoono continues to prioritise the development of commercial opportunities in its selected niche markets. Importantly, progress is being made on several major sales opportunities.
Shelf-life extension project - UK, Europe, Asia, Africa, and Australia
Zoono and OSY Group Ltd (OSY) are currently conducting 29 shelf-life extension trials (compared to 21 at the end of the prior quarter) in twelve countries (across four continents). The trials involve a diverse range of customers, including supermarket chains, food producers, packaging companies and exporters.
Where the earlier trials were focused predominantly on soft fruits, that focus has now broadened substantially to include other fruits and vegetables, meat, fish, poultry, bread, ready-meals and fresh flowers. All tests and trials to date have been successful.
In addition to the above, many other companies are engaged with either Zoono or its project partner, OSY, in relation to the technology. Discussions range from early-stage engagement, detailed product discovery to in-store trials and contract negotiations.
The level of interest demonstrated across the different geographies and product categories continues to be extremely positive, validating Zoono's belief that its technology, coupled with OSY's application methodology, can assist with the reduction of food waste globally.
Two major UK supermarket chains have now confirmed plans to roll out the packaging technology to a number of their designated depots for in-store berry trials in March 2025. This is the next step in the process and, if successful, it is expected to lead into a full national roll-out to all stores in Q4 FY25 / Q1 FY26.
In large part, the conservative approach of the large UK supermarkets chains to the adoption of the new technology and the resultant extensive testing of the Zoono product and application technology have driven the delays.
While it is disappointing that commercial uptake of the packaging technology is taking longer than expected, the Board is very encouraged by the level of interest in its products and the potential for future long-term revenue streams available from this niche market. That confidence is founded on the fact that the trials have demonstrated an extremely compelling case for any supermarkets willing to invest in the new shelf-life extension technology - the return on investment is more than 5 times.
It is also the case that in the interim customer interest has increased and the number of companies moving forward with product trials far exceeds the initial forecasts. OSY is now considerably further ahead in the implementation of its commercialisation strategy than previously projected.
The Company has also been able to use the time to further refine and improve its product and the application process itself. The new product formulation has facilitated an increase in the speed of application to the packaging material which, for packaging companies, has materially reduced any negative impact of the use of the Zoono product on their productivity.
Zoono is also in discussions with several large packaging companies that supply UK and European supermarkets.
Other initiatives
Zoono is also making some progress in its target Asian markets of China, Korea, India and Japan. Further orders are expected in Q3 and Q4 FY25 from a large Japanese pharmaceutical company for product which will ultimately be used in the textile industry.
Working capital
With continuing lower operating overheads, improved sales revenues in Q1 and Q2 FY25 (over PCP FY24) and the potential for sales of its shelf-life extension products starting in Q3 or Q4 FY25, Zoono expects to have sufficient funds to meet its objectives. It also has access to further funding lines should they be required.
Summary of Q2 Expenditure
Related party payments of $120,000 shown on the following Appendix 4C were directors’ fees (including amounts paid to the executive director) for services rendered.
Expenditure incurred during the quarter on business activities was primarily on staff costs (NZ$117K), product manufacturing (NZ$121K) and administration and corporate overheads (NZ$817K). Other material expenditure included advertising and marketing (NZ$41K) and interest and research and development (NZ$5K).
Read the full announcement here
About us:
About Zoono Group Limited
Zoono Group Limited is a global biotech company that develops,manufactures and distributes a suite of scientifically validated, long-lasting and environmentally-friendly antimicrobial solutions. Zoono’s mission is to improve health and well-being through innovative, safe, non-toxic and durable germ protection.
Zoono produces sprays, wipes and foams suited for skin care, surface sanitisers, and mould remediation treatments. The products are based on the ‘zoono molecule’, a unique antimicrobial molecule that bonds to any surface and kills pathogens including bacteria, viruses, algae, fungi and mould.
Zoono’s products have received numerous regulatory approvals and the company’s technology claims are supported by independent testing conducted in laboratories worldwide. Zoono is headquartered in New Zealand and its products are available globally.
Contact details:
Zoono Group Limited
Paul Hyslop
Group MD
M: + 64 21 659 977
E: paul.hyslop@zoono.com
Paul Ravlich
Group CFO
M: +64 21 075 9176
E: paul.ravlich@zoono.com
Investor Relations
The Capital Network
Julia Maguire
T: +61 2 8999 3699
E: julia@thecapitalnetwork.com.au