Ann: FLLYR: BLT: BLIS Technologies Ltd- Annual Re

• Release Date: 21/05/12 16:44
• Summary: FLLYR: BLT: BLIS Technologies Ltd- Annual Report to 31 March 2012
• Price Sensitive: No
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BLT
21/05/2012 14:44
FLLYR

REL: 1444 HRS BLIS Technologies Limited

FLLYR: BLT: BLIS Technologies Ltd- Annual Report to 31 March 2012

BLIS Technologies Improves second half-year performance

Dunedin based biotechnology company, BLIS Technologies Ltd (NZX: BLT)
recently reported to its shareholders the results for its financial year,
ending 31st March 2012.

Whilst the Company (parent) recorded a net deficit of $1,733k (2011:
$1,385k), the Group recorded a net deficit of $1,759k. The Group's trading
revenue however, increased from $1,351k (2011) to $1,467k.
Despite poor sales in the first six months of the year, BLIS Technologies was
able to finish the year strongly.  While not able to surpass the full year US
market ingredient sales of 2011, the company was able to reduce losses
incurred in the first half of the year through the appointment of a new
distributor and a refocused sales and marketing effort in North America. The
Company, in association with its distribution partner, Pharmabroker Sales
(NZ) Ltd increased New Zealand retail sales by 23% over prior year. This was
on top of 13% annual growth for the 2011 year. The Company doubled sales in
Asia and showed a very slight increase in sales for Australia. In addition,
the company is pleased with early successes from internet sales
(www.blis.co.nz ), posting a small, but not significant revenue after nine
months of operation.

"Unlike pervious years, where the company received significant revenue
through contract research or grant funding, revenues in 2012 were almost
entirely from our own commercial efforts, said Dr Barry Richardson, Chief
Executive Officer. "A highlight for the year was that we managed to quickly
put a remedial plan in place for the North American market and refocus our
efforts on our existing customer base, which has proven good for the company.
However, we still have a lot of work to maintain forward momentum and to
build on the work being done in the North American market."
Dr Richardson indicated that much of the problem in North America came from a
rapid down turn in sales from a single key retail brand manufacturer.
"The US consumer mass market is driven by advertising and promotional
spending and support from the brand manufacturer and so in this case, when
the retail brand manufacturer suffered a company-wide downturn in sales, it
also hit the BLIS probiotics products that they had been marketing. Unable to
sustain their promotional activity, the majority of retailers removed them
from the shelves and within a few short months they had gone from national
retail distribution to limited distribution." Richardson said.

The Company also notes the contribution to sales that its acquisition, The
Gourmet Ice Cream Company, has made during the past 12 months. This result,
taken in combination with the steady growth of the New Zealand pharmacy
market, is the highest revenue earnings that the company has achieved within
the New Zealand market, since it started operations.
During the past financial year the company has cleared several regulatory
hurdles in different markets and is now preparing to undertake commercial
development programmes.  These markets include China, Russia and the food
ingredient industry within the United States.
"The decision to obtain the US FDA's GRAS status for BLIS K12 has proven to
be very useful in assisting the company with regulatory approval in other
markets", said Dr Richardson. "because this process requires an international
board of independent experts to attest to the fact that BLIS K12 is safe for
inclusion into food for its intended purpose, then this not only opens up
future opportunities in within the food industry but perhaps more importantly
it helps enormously other regulatory agencies around the world.

The Company also announced that the 4,000,000 Convertible Preference Shares,
which it had on issue, were automatically converted to Ordinary Shares to
those holders of Convertible Preference Shares and pursuant to their terms of
issue, at a ratio of 74.52 Ordinary Shares per Convertible Preference Share
held. As a result that Company advised that a total of 298,062,787 Ordinary
Shares were issued, pursuant to the conversion of the Convertible Preference
Shares.

YOUR CONTACT:
Max Shepherd
Director of BLIS Technologies Ltd
Phone: (021) 882 088
Email: [email protected]

BLIS Technologies Ltd
PO Box 56
87 St David Street
Dunedin
New Zealand
Phone +64 (3) 479 5337
End CA:00223078 For:BLT    Type:FLLYR      Time:2012-05-21 14:44:30