PAZ Pharma Zen

[percy]

One of the joys of being listed on USX is no rush to tally up the years number

If on NZX would have had to be released in 60 days …ie Dec yearvend due end of February at latest

I hear the agm will be held on 27th June.
Not sure when we will get the annual report.

[percy]

FINANCIAL RESULTS FOR THE YEAR TO 31 DECEMBER 2023
PharmaZen resilient amid challenging trading conditions
Christchurch biotechnology company PharmaZen (USX.PAZ) today reports continued growth in
revenue and underlying earnings as it benefits from investment in new capacity and strong demand for
its range of nutraceuticals and supplements.
Revenue for the year to the end of December 2023 rose 10% to $28.9 million from $26.3 million in the
prior year, with a strong performance in the second half of 2023 overcoming the staffing and production
challenges of the first half.
Underlying earnings before interest tax depreciation and amortisation (Underlying EBITDA)
1
rose 11%
to $4.2 million from $3.75 million in the prior year. Rising costs alongside the production constraints of
the first half weighed on the final result. However, these pressures were offset by higher sales volumes
and better mix of products contributing a greater share of the revenue with gross margins increasing to
33% from 31% in the same period a year ago.
PharmaZen Chairman Ken Fergus said: “Our capital investment and expansion program over the last
few years is truly delivering for the company. Demand remains extremely strong and there were no
issues fulfilling the additional capacity other than staffing and raw materials. There is no doubt that
without the additional dryers we would not have been able to recover from the poor start to the financial
year.
“Inflation, employment costs, rising interest rates, and an extremely challenging insurance market have
added significant costs to the business and increased pressure on our cash resources as we continued
with our capital investment programme.”
Mr Fergus said PharmaZen was confident in its long-term prospects.
“While supply constraints for products such as krill oil remain, demand for our products globally
continues to be strong and we see new and lucrative opportunities in marine oils, botanicals and pet
foods particularly in the Chinese market,” Mr Fergus said.
“With key production facilities nearing completion we are well positioned to capitalise on the many
opportunities we see. We look forward to providing a further update to shareholders at our annual
meeting.”
For further information:
Craig McIntosh
Managing Director
PharmaZen +64 21 372 069
About PharmaZen:
PharmaZen (USX.PAZ), which trades as W

[percy]

Looking Ahead
With end customer demand continuing to be strong, we go into 2024 with considerable optimism.
New opportunities are arising in and around our consumer product ranges with AiOra set to receive a significant push in
2024. New Zealand music icon Boh Runga is taking on an ambassador role fronting our range extension into glandulars.
The AiOra range was developed to access the non-ingredient markets in Southeast Asia, and it is pleasing to note that we
will have products in both China and Korea this year.
The pet range will be launched across three online platforms in China in July. In conjunction with our Chinese partner
significant work has gone into finalising packaging, product and distribution channels.
Challenges with trademark registration will see the range marketed as Waitaki Pet and we are enthusiastic about the initial
feedback and potential

[percy]

I note revenue for the year was $28.9 mil.Considering the very poor first half revenue was only $10.3 mil,the second half revenue was a very good $18.6 mil.This revenue was delivered from Port Hills Road site only.
Rolleston.Hopefully they start operations as they say at the end of July.
Should PAZ be able to keep Port Hills Road producing at current levels we can expect revenue there may reach over $37 mil to $39 mil.
With gross margin currently 33% we should see PAZ produce a very satisfactory result for the year ending 31st December 2024.
Now the big question that should be answered at the agm on June 27th,is what revenue Rolleston will produce.?
We will hear later in the year how the pet food sales are going;
The pet range will be launched across three online platforms in China in July. In conjunction with our Chinese partner
significant work has gone into finalising packaging, product and distribution channels.
Therefore there is a lot to look forward to.