PAZ Pharma Zen

[Sideshow Bob]

Yes, thanks. I would have missed it.

Updated USX website is a bit of a dog, but if you register you can get email notifications of announcements.

There isn't a heap of announcements so not too bad sorting wheat from the chaff.....

[whatsup]

The best ann that we could have hoped for under the circumstances , upwards from here after the Covid hold up and installation issues, well done management.

[Sideshow Bob]

By my (Thursday arvo) maths, if Q3 earnings are annualised, then PE ratio is a shade over 10 at the last price of $0.20?

Although some did go through on Monday, not much trading at $0.20 and not enough to really entice much from holders.

Good improvement but one swallow doesn't maketh a summer either....

[percy]

Black Friday Sale Starts Now


The sale you've been waiting for! Shop 30% off all single products and essential packs.

No discount code needed.

Go to www.aioranz.com

[iceman]

Good to see a sale going through at 30c today and a bit of further support at that level.

[percy]

Bit of interest in PAZ..
BIDS
Quantity Price MPID
58,000 0.3000
5,000 0.3200
25,000 0.3100
100,000 0.2500
OFFERS
Quantity Price MPID
18,000 0.4000
20,000 0.4200

[whatsup]

Bit of interest in PAZ..
BIDS
Quantity Price MPID
58,000 0.3000
5,000 0.3200
25,000 0.3100
100,000 0.2500
OFFERS
Quantity Price MPID
18,000 0.4000
20,000 0.4200

Yeh, 60,000 sales @ circa.30 today.

[Sideshow Bob]

https://prod-trade.usx.co.nz/api/file/65838c181507a31d3f92689f.pdf

As indicated at the release of our Q3 result, we are pleased to provide an update on the performanceof the company for the current quarter.

The trading improvements seen in Q2 and Q3 continue into Q4 for which we are forecasting anotherpleasing result.

We are not forecasting Q4 to hit the same underlying EBITDA that we achieved inQ3 given the shorter trading month in December and year end cut-off issues, but we are stillexpecting to show a very favourable result for the quarter.

The Board wishes to thank all our shareholders and staff for their support over the year and arelooking forward to continued growth and opportunities into 2024 and beyond.Wishing everyone safe and happy holiday season.

[whatsup]

https://prod-trade.usx.co.nz/api/file/65838c181507a31d3f92689f.pdf

as indicated at the release of our q3 result, we are pleased to provide an update on the performanceof the company for the current quarter.

The trading improvements seen in q2 and q3 continue into q4 for which we are forecasting anotherpleasing result.

We are not forecasting q4 to hit the same underlying ebitda that we achieved inq3 given the shorter trading month in december and year end cut-off issues, but we are stillexpecting to show a very favourable result for the quarter.

The board wishes to thank all our shareholders and staff for their support over the year and arelooking forward to continued growth and opportunities into 2024 and beyond.wishing everyone safe and happy holiday season.

nice ,nice< nice.

[winner69]

nice ,nice< nice.

Definitely going back to $1

Better news through out next year ….and beyond

[Bluebell]

Definitely going back to $1

Better news through out next year ….and beyond

.
How could you derive that that from such a vague report - it completely lacks any substance. The Chairman should be ashamed of himself. Veiled reports are becoming very regular with this outfit

[iceman]

.
How could you derive that that from such a vague report - it completely lacks any substance. The Chairman should be ashamed of himself. Veiled reports are becoming very regular with this outfit
I agree about the lack of substance. I find this so called update disappointing. It tells us absolutely nothing. Very poor reporting from this company and in fact from the USX listed companies in general.

[Baa_Baa]

I agree. I find this so called update disappointing. It tells us absolutely nothing. Very poor reporting from this company and in fact from the USX listed companies in general.

It's to be expected though, with low reporting standards and accountability on the USX, we shouldn't be raising our expectations imo, as we will only be disappointed as a result. Not to mention poor liquidity, that's the rub imo, combined with what we don't know what we don't know (because they don't tell us), and a 'market' that has extraordinarily low volumes and wide spreads, anything can happen.

I guess that we would only take a position in a USX stock if we have a very high conviction that in time it will do very well. There is no reason for any of them to convert to the NZX unless they want to raise capital. And being a small minority shareholder, we can only expect to be treated with contempt, disdain, and kept in a state of ignorance of what's really going on for the majors.

An annoyance even, those bloody minors who think they're going to make a fortune from us! We don't answer to them!!

[winner69]

Hey guys ….it was only Christmas greetings and like a lot of Christmas messages included a bit about hey we doing well and all OK and looking forward to a Happy and Prosperous New Year

Nice of them to do that …I’ve sent off a email saying thanks and wishing them a happy Christmas etc.

[DarkHorse]

Has anyone made any guesstimates for future earnings you'd like to share? Thanks and merry Christmas :)

[iceman]

Has anyone made any guesstimates for future earnings you'd like to share? Thanks and merry Christmas :)

Totally impossible to guess the future on this one. We have a confirmed EBIDTA of $ 2.26M for the 9 months. I'm guessing we'll end up with an EBIDTA of around $ 3.5M for the year.
Last year we had $ 3.75M and a $ 1.1M NPAT.
Who knows what NPAT or EPS we are on this year but my absolute guesstimate is probably still only at something like 1.5c EPS. No good.

But we have now had 3 quarters of good sales and decent EBIDTA, even though they say the EBIDTA in Q3 is down from Q2. But we seem to be steadying up on quarterly sales of around $ 7.5 -8.5M and EBIDTA of $ 1.5-1.9M.

That is a good steadying of the business past COVID. I am pleased with that as I am sure much of the SH that stuck with the company are. Now I want to see what the plan is to grow the business with a quick & significant boost to the bottom line.

I can't wait to see Rolleston starting to produce good volumes because I think it will be a game changer !

EPS of 4.5C minimum for FY2026 and growing fast.

Talk about pulling numbers out of a hat :-) :-)

[DarkHorse]

Totally impossible to guess the future on this one. We have a confirmed EBIDTA of $ 2.26M for the 9 months. I'm guessing we'll end up with an EBIDTA of around $ 3.5M for the year.
Last year we had $ 3.75M and a $ 1.1M NPAT.
Who knows what NPAT or EPS we are on this year but my absolute guesstimate is probably still only at something like 1.5c EPS. No good.

But we have now had 3 quarters of good sales and decent EBIDTA, even though they say the EBIDTA in Q3 is down from Q2. But we seem to be steadying up on quarterly sales of around $ 7.5 -8.5M and EBIDTA of $ 1.5-1.9M.

That is a good steadying of the business past COVID. I am pleased with that as I am sure much of the SH that stuck with the company are. Now I want to see what the plan is to grow the business with a quick & significant boost to the bottom line.

I can't wait to see Rolleston starting to produce good volumes because I think it will be a game changer !

EPS of 4.5C minimum for FY2026 and growing fast.

Talk about pulling numbers out of a hat :-) :-)

Cheers Iceman, appreciate your thoughts.

[Sideshow Bob]

If they made $3.5m EBIT this year, then that would mean PE of around 32.

Still priced for growth.....more runs needed.

[Joshuatree]

Hard to know if momentum has stalled or what.
Anyone else find the new Unlisted platform clunky,I can't even open announcements

[blackcap]

Hard to know if momentum has stalled or what.
Anyone else find the new Unlisted platform clunky,I can't even open announcements

Unlisted platform is horrible. For starters you need to be signed in. That's already an impediment. Then trying to find the right info is terrible. I didn't like their old platform but it was a hell of a lot better than this monstrosity they have now.

[whatsup]

.05 out of 10 IMHO !!!

[percy]

Unlisted platform is horrible. For starters you need to be signed in. That's already an impediment. Then trying to find the right info is terrible. I didn't like their old platform but it was a hell of a lot better than this monstrosity they have now.

I am having a bit of a laugh.
I will often go to USX site two or three times a day.Get cheesed off having to type in my password each time.
Then I remembered when I followed the UK market in the late 1980s and early 90s.
Had to drive into town.Find a park.Then go up to the 3rd floor of ChCh library to the newspapers section.Then find a FT and then look at the market prices.
All up about an hour.
USX is a good bit quicker...lol.

[Sideshow Bob]

I am having a bit of a laugh.
I will often go to USX site two or three times a day.Get cheesed off having to type in my password each time.
Then I remembered when I followed the UK market in the late 1980s and early 90s.
Had to drive into town.Find a park.Then go up to the 3rd floor of ChCh library to the newspapers section.Then find a FT and then look at the market prices.
All up about an hour.
USX is a good bit quicker...lol.

Haha that's brilliant!! :)

Not quite teletext......

But USX go to the trouble of building a new platform, and what they do with that time, effort and money is build is a complete dog, at least for the general public.

[percy]

Good new board appointment.
https://prod-trade.usx.co.nz/api/file/65cbd3787b7189fb73e9d870.pdf

[Sideshow Bob]

Good new board appointment.
https://prod-trade.usx.co.nz/api/file/65cbd3787b7189fb73e9d870.pdf

Emailed out to shareholders an hour ago - not yet on the USX website......

[winner69]

Is there ever a bad Board appointment

[percy]

Is there ever a bad Board appointment

Ask a PGW shareholder...lol

[whatsup]

Percy, when is the next financial ann due and what are u expecting from PAZ ?

[percy]

Percy, when is the next financial ann due and what are u expecting from PAZ ?

Result is overdue.
I am expecting a modest profit.
All production is still only coming from Port Hills site.
Rolleston still not in production.
What I will be looking for is a firm date production will be starting at Rolleston,and where they will be concentrating their efforts,ie extraction or freeze drying.
The outlook statement at their agm should give us some guidance to base projections on.AGM is usually held in May.

[Joshuatree]

Thanks percy for that.

[iceman]

We didn't get the Annual Report until 15 May last year !

[Sideshow Bob]

PAZ shareholders certainly are a patient lot.....

About 43,000 shares traded this year out of 253 million on issue. :sleep:

[iceman]

I have today received an email from PAZ advising their Aiora products are increasing in price by 10-30%.
“Hard to swallow” as a customer but very pleasing as a SH, as long as the customers accept it !!

[RTM]

PAZ shareholders certainly are a patient lot.....

About 43,000 shares traded this year out of 253 million on issue. :sleep:

For me they are bottom draw stuff. Forget about them until I see someone has posted something !

[Bluebell]

Not much news coming out of this outfit. Can't be too many successes otherwise they would be making announcements. Have been reading some former reports and wondering if they've achieved what they said they were going to do.

2022 Annual report mentioned that CIBUS was expected to invest a further $4.2m - $4.5m within 20 months. Wondering if that came through? Also has their freeze drying capacity tripled as they said since 2022.

Think it was about this time last year that they invited shareholders out to the Rolleston site to look at the new facility, last years report said they would have Tawhiri 1 running early 2024 - interested to know if its generating revenue yet.

Chairmans report described the sale and lease back of Tawhiri 1 to the tune of $9m to enable Tawhiri 2 to commence. I drove past the site a month or so ago - doesn't look like anything has been done - looks like a storage shed missing its sides so no change since the chairmans report.

2023 was supposed to see a new drier operational at Tawhiri 1 early Q4 2023 and another late Q4 2023.

[Apathy]

Not much news coming out of this outfit. Can't be too many successes otherwise they would be making announcements. Have been reading some former reports and wondering if they've achieved what they said they were going to do.

2022 Annual report mentioned that CIBUS was expected to invest a further $4.2m - $4.5m within 20 months. Wondering if that came through? Also has their freeze drying capacity tripled as they said since 2022.

Think it was about this time last year that they invited shareholders out to the Rolleston site to look at the new facility, last years report said they would have Tawhiri 1 running early 2024 - interested to know if its generating revenue yet.

Chairmans report described the sale and lease back of Tawhiri 1 to the tune of $9m to enable Tawhiri 2 to commence. I drove past the site a month or so ago - doesn't look like anything has been done - looks like a storage shed missing its sides so no change since the chairmans report.

2023 was supposed to see a new drier operational at Tawhiri 1 early Q4 2023 and another late Q4 2023.

Always find it interesting when somone joins the platform with a single axe to grind - posts on no other threads... even more interesting when the join just after the company has a clean out - at all levels of the operation.

[RTM]

Always find it interesting when somone joins the platform with a single axe to grind - posts on no other threads... even more interesting when the join just after the company has a clean out - at all levels of the operation.

...and their location is Christchurch. Nice observation.

[Caribbean]

Any news on results and a date for AGM? Well over due.

[winner69]

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

[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.

[whatsup]

Well done Percy and the PAZ team, at last all is falling into place after a couple of years frustration , I can only see onwards and upwards form here.
Im picking that this years AGM will be a water shed one, thank you staff and the top table.

[DarkHorse]

Pleased to see the second half of 2023 went much better than the first.
Pretty underwhelmed with the communication though - it took til the end of May to give us figures to the end of December, with no trading updates, less than an A4 page of commentary by the Chair and nothing from the CEO.
I suppose more will be revealed at the AGM, but why do we have to wait even longer for any meaningful data from 2024?

[Sideshow Bob]

And in celebration 30,000 shares traded today - the 6th trade this year!!

[Sideshow Bob]

But in all seriousness, need to have a read of the Annual Report.

[iceman]

And in celebration 30,000 shares traded today - the 6th trade this year!!

21,000 actually and yes, guilty as charged. New deck.

[percy]

PAZ Annual report;
https://usx.us5.list-manage.com/track/click?u=746ad5c195883aa443504e861&id=4fbc16908e&e=c8d1cd4df0

[nizzy]

...but the result is not that great actually - NPAT is a loss for the year once you remove the one-offs like a paper accounting gain. So, an actual loss on trading. Agree with others that PAZ communications leave a good deal to be desired. The Chair's commentary is cursory and generalist and nothing from the CEO.

[blackcap]

...but the result is not that great actually - NPAT is a loss for the year once you remove the one-offs like a paper accounting gain. So, an actual loss on trading. Agree with others that PAZ communications leave a good deal to be desired. The Chair's commentary is cursory and generalist and nothing from the CEO.

Gross profit being up is a good thing I think.

Can anyone explain what is meant by "Fair value (gain) on financial liabilities measured at fair value" ? This amount inflates the bottom line by $6.3 million.

There is also that pesky (capitalised interest) of about $1 million that also inflates the bottom line by that much.

The cash flow statement does provide more clarity. Operating activities of minus $1.3 million. To be fair, receivables are up by $3 million and payables only by half a mill.

Might have to do some more in-depth research.

[Sideshow Bob]

...but the result is not that great actually - NPAT is a loss for the year once you remove the one-offs like a paper accounting gain. So, an actual loss on trading. Agree with others that PAZ communications leave a good deal to be desired. The Chair's commentary is cursory and generalist and nothing from the CEO.

Given the AGM is 27th of June (all but halfway through the year) they should be able to give a very solid outlook/update for the current year.

Getting a little shoddy IMO with commentary and communication. Need to do better as shareholders have been pretty patient. Do Cibus operate on the same info??

[blackcap]

Given the AGM is 27th of June (all but halfway through the year) they should be able to give a very solid outlook/update for the current year.

Getting a little shoddy IMO with commentary and communication. Need to do better as shareholders have been pretty patient. Do Cibus operate on the same info??

Do Cibus have board representation? If they do they obviously operate on different info.

[Sideshow Bob]

Do Cibus have board representation? If they do they obviously operate on different info.

Don't believe so since Damien Petrie resigned off the board July last year.

[blackcap]

Don't believe so since Damien Petrie resigned off the board July last year.

Thanks, I don't really follow this company so had no idea of their board structure.

If they don't, then in theory they should have the same information as us plebs.

However, they might call the company from time to time and ask for insights and update. Nothing to stop us pleb shareholders doing the same.
I remember calling the PAZ CFO a year ago and getting some interesting info from him regarding the capitalised interest.
More shareholders should be active and call their businesses but you can only bring a horse to water..

[Sideshow Bob]

Agree. They are likely to be more active than private investors in seeking information/contacting the company - and as you say, nothing to stop us doing the same.

However if PAZ had better communication then the less need to do so. I think they have around 550-600 shareholders, so expect management wouldn't be thrilled to hear from each of them on an on-going basis.

Appreciate those members who talk to mgmt and attend AGM's etc and share their findings.

[blackcap]

Agree. They are likely to be more active than private investors in seeking information/contacting the company - and as you say, nothing to stop us doing the same.

However if PAZ had better communication then the less need to do so. I think they have around 550-600 shareholders, so expect management wouldn't be thrilled to hear from each of them on an on-going basis.

Appreciate those members who talk to mgmt and attend AGM's etc and share their findings.

Totally agree. Maybe if 100 shareholders harangue them each week for info, they might be more forthcoming themselves.. :)

[whatsup]

Percy,

With the todays article re dog food, in the N Z Herald I thought that I heard somewhere the PAZ was into pet food, I know its a truly massive business world wide, Japan in the hundreds of millions.

[Sideshow Bob]

Percy,

With the todays article re dog food, in the N Z Herald I thought that I heard somewhere the PAZ was into pet food, I know its a truly massive business world wide, Japan in the hundreds of millions.

I maybe wrong, but I think PAZ are focusing on treats rather than food initially? Their original brand was DOT (department of treats).

Petfood (and treats) has become such a crowded space, even in NZ. There are now several companies/factories in NZ that their sole focus is to provide OEM production to primarily foreign companies brands. The number of brands coming out of NZ alone is exponentially higher than a few years ago.

Hope they are successful, but unfortunate they didn't get started back when they did the initial work on DOT - as more challenging with crowded space and economic environment. But also I think PAZ are producing also doing some OEM production as well as their own??

[blackcap]

I maybe wrong, but I think PAZ are focusing on treats rather than food initially? Their original brand was DOT (department of treats).

Petfood (and treats) has become such a crowded space, even in NZ. There are now several companies/factories in NZ that their sole focus is to provide OEM production to primarily foreign companies brands. The number of brands coming out of NZ alone is exponentially higher than a few years ago.

Hope they are successful, but unfortunate they didn't get started back when they did the initial work on DOT - as more challenging with crowded space and economic environment. But also I think PAZ are producing also doing some OEM production as well as their own??

Petfood treats are a rort.

We have a couple of dogs and the thing they love most is a fresh bone out of the freezer (from the beef we slaughtered).

Our newly acquired kitten (to catch mice) loves nothing more than rolling a walnut along the ground with the associated noise it makes.

People that buy "treats" and "gimmicks" for pets are nut cases.

[Sideshow Bob]

Part of the whole "humanisation" of petfood trend.

And also treating pets like a child/family.

[whatsup]

Part of the whole "humanisation" of petfood trend.

And also treating pets like a child/family.

I read somewhere the in Italy this generation of breeders, dont know what catagory they fit into but lets call them " the woke generation " are not having children but are into pets , specifically dogs ( and small dogs to boot ) as they dont have the decipline or understanding to raise children, understandably when we hear that the dont leave home until the mid to late thirties, but then this was the country that had 1 forward gear in their tanks and 4 reverse.

[winner69]

Speedy Az loves his Mutt Butter Peanut Cookies

https://muttbutter.co.nz/collections/all

[whatsup]

Speedy Az loves his Mutt Butter Peanut Cookies

https://muttbutter.co.nz/collections/all

Tell me that the $50-$70 / bag is a joke ?

[winner69]

Tell me that the $50-$70 / bag is a joke ?

6 bags ….so about $10 a bag but more expensive than cookies for humans eh

Speedy Az not complaining about price lol

[Sideshow Bob]

Tell me that the $50-$70 / bag is a joke ?

Here you go Whatsup.....

Here is the reason why they got sold for $1.5b (big for big ones)

https://www.animates.co.nz/brands/ziwipeak

[percy]

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


I expect to hear/see more about this at the agm on the 27th June.

[winner69]

Speedy Az and his bro have to make do with Coprice …20kg bags for $100

Imported from Australia

[percy]

Even the Tasmanians are into per food.
https://www.isleandsky.com.au/

[davflaws]

this was the country that had 1 forward gear in their tanks and 4 reverse.



The joke about Italian tanks was that the one forward gear was installed in case of a surprise attack from the rear.

[whatsup]

The joke about Italian tanks was that the one forward gear was installed in case of a surprise attack from the rear.

Never could trust those the attack/penetrate from the rear !