Here Issued 20/8
From the Chair
The $265,000 profit before tax is as expected given a 63.69% decline in revenue primarily due to the following reasons:
- COVID-19 travel restrictions and lockdowns globally reducing demand for sunscreen products.
- Our key distributors reduced their stock levels in North America and Europe due to ANO establishing warehouse facilities in Netherlands and USA.
In past 6 months have
- increased capacity and product range including a vegan range
- An AUS client has developed a combined sunscreen / mosquito repellent product
Based on forecasts from distributors and firm orders placed to date, we anticipate that sales for this half to be similar to that of FY20 sales - which was $11M with profit after tax of $3.4M
1/7/21 - ANO has combined sales orders and future sales forecasts at present from July to December2021 totalling approximately $10 million. This compares to our pre COVID-19December 2019 half-year salesof $11.3million
9/8/21 - July sales exceeded $1.1 million the highest sales month since March 2020
From the CEO
We have invested significantly into increasing finished inventory across all products and have over 300T of product ready and available in our warehouses in Netherlands and USA and in excess of 700T of product in our Australian warehouses.
Our facility now has an annual capacity of 5,000T of XP Powder. Allowing for up to 50% of this capacity to be used as an input into our dispersion products, the remaining 50% provides the Company with capacity to grow at a rate of 6 times the XP Powder sales levels achieved in FY2019
quotes published in a Tegus Transcript by Estee Lauder Director of R&D Material/Product Physical Science:
“We use Zinclear/Advance Nantech because of the quality and value add to the product technology they offer and future offerings.”
“They are the largest of the ZnO USA material manufacturers on the market. The Japanese manufacturers that compete in this technology market landscape come in as second. The market share and penetration will increase for Advance Nanotech in this space.”
As you should now be aware, UV chemical filters have been linked to skin cancers and environmental damage, which is why safe zinc-based sunscreens with no chemical filters will become more prevalent over time in the sunscreen market. There is a growing list of countries to ban UV chemical filters with Thailand the latest to join this list.
My View
I'm buying more for the following reasons
- Actual sales have started to materialise
- Lev has invested $20m of his own money over the past 2 years - at the current share price
- The share price is close to the minimum reached in the COVID crash last year.
