Christchurch biotechnology company PharmaZen (USX.PAZ) today reports continued growth inrevenue and underlying earnings as it benefits from investment in new capacity and strong demand forits 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 theprior year, with a strong performance in the second half of 2023 overcoming the staffing and productionchallenges 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 ofthe first half weighed on the final result. However, these pressures were offset by higher sales volumesand better mix of products contributing a greater share of the revenue with gross margins increasing to33% from 31% in the same period a year ago.
PharmaZen Chairman Ken Fergus said: “Our capital investment and expansion program over the lastfew years is truly delivering for the company. Demand remains extremely strong and there were noissues fulfilling the additional capacity other than staffing and raw materials. There is no doubt thatwithout the additional dryers we would not have been able to recover from the poor start to the financialyear.
“Inflation, employment costs, rising interest rates, and an extremely challenging insurance market haveadded significant costs to the business and increased pressure on our cash resources as we continuedwith 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 globallycontinues to be strong and we see new and lucrative opportunities in marine oils, botanicals and petfoods particularly in the Chinese market,” Mr Fergus said.
“With key production facilities nearing completion we are well positioned to capitalise on the manyopportunities we see. We look forward to providing a further update to shareholders at our annualmeeting.”
For further information:
Craig McIntosh
Managing DirectorPharmaZen +64 21 372 069
About PharmaZen:
PharmaZen (USX.PAZ), which trades as Waitaki Biosciences, is an innovative developer, manufacturerand marketer of science-based, natural, nutritional ingredients and consumer goods. Originally foundedin Dunedin, PharmaZen now has the largest solvent extraction facility in the country and operates thelargest batch freeze dryer in Australasia. Shares in PharmaZen are traded through the Unlistedsecurities trading platform. www.waitakibio.com
1 Underlying EBITDA is a non-GAAP measure of financial performance. It is defined in the company’s annual reportas released to the USX today.
