Consensus community valuation
$3.44
Average Intrinsic Value
157%
Undervalued by
Active Member Straws
#AGM Presentation
Added 2 weeks ago

Apologies I am late to the party, but here is my breakdown of the AGM Presentation of last week.

 

UK

·         Regulatory approval in most EU countries, with a list of others where regulatory approval has been submitted, or the process is underway

·         Key customer in the UK – Atalian Servest (services rail networks across most of UK)

o   Sales pipeline;

§  Zoono AG – fruit & veg sector

§  Trans Dev – global passenger trains

§  Opportunities in Russia – are pending reg. approval – this is only a matter of time

 

Aus/NZ

·         Focus is on B2b – better margins and order

·         Digital marketing specialist employed to drive b2c (worth it…?_)

·         Partner with Qantas for “fly-well” program

·         New agreement to distribute to John Lyng Group

·         Focus on partnering with health care solutions – no break through yet but pipeline is always there.

 

US

·         New GM

·         New chemical reactor, allowing for raw materials to be self-developed, higher production capabilities

·         Regulation and EPA testing is underway in related to COVID longevity claims – this is sure to be positive news to market once finished

·         New website to be launched in relation to B2c ….

·         Expansion of distributors in Panada, Jamaica, Mexico etc

Current top customers

·         United Airlines – entire airline fleet (this contract was only signed in q1 and hence won’t start fruiting till q2, q3 onwards)

·         CVS – Pharmacy retailer

·         California, Texas, Florida – jails, government offices and squad cars

o   MANY MORE

Top Prospects;

·         7 Eleven stores – currently testing versus a competitor (68,000 stores potential)

·         ARDA – 400k resorts

·         Boeing

·         Many big contracts with initial orders placed

·         UPS logistics – looking to treat facilities

·         Delta airlines – awaiting testing results and eager to take the same path of United Airlines!!

·         Many many trials underway, LAX airport, Grand Rapids Airpoty, Olympia Entertainment, Microsoft offices, Virgin Hotels and many more

 

 

Middle East & Africa

·         Development of new sales channels underway in Bahrain, SA, Egypt and Africa

·         Further testing

 

 

*I do hold some ZNO shares

This AGM was a very positive presentation in my view and just goes to show how deep the sales pipeline for the company is going to be moving forward in 2021.

The release of a vaccine has only given a cheaper entry point in my view, the re-opening of the economy etc is going to see greater potential sales opportunities.

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#Efficacy of Zoono
Last edited a month ago

29-Oct-2020:  Latest Testing Confirms Zoono Efficacy and Longevity

Highlights:

  • UK rail passenger trains treated with Zoono Microbe Shield ‘near sterile’ after 30 days;
  • UAE Government appointed Lab confirms Zoono Microbe Shield 99.9% efficacy at 30 days;
  • Intertek Laboratory’s testing shows Zoono Microbe Shield >99.99% efficacy at 30 days; and
  • Testing shows Zoono Hand Alcohol Free Sanitiser GermFree24 meets the requirements of the EN1500 (European) standard for hygienic hand rubs.

Zoono Group Limited (ASX: ZNO) is pleased to provide an overview of recent test results from a series of independent laboratory tests commissioned on its products. All results re-confirm the efficacy and longevity of Zoono’s Microbe Shield against pathogens.

In the UK, a series of “in situ” tests were conducted on passenger trains servicing UK Rail. This is in addition to London Underground’s original substantive “live” trials of Zoono Microbe Shield against a variety of pathogens in 2015. That original trial found that “Zoono achieved 100% effectiveness over a 21-day period”.

The recent testing was carried out by an GTECH Strategies Limited in collaboration with an independent UKAS accredited test laboratory. 72 ‘hot’ touch points areas were tested across 23 trains for any presence of Human COVID-19, E.coli and Staphylococcus. These ‘hot points’ within carriages and drivers’ cabs had been treated with Microbe Shield between 8-30 days prior to testing. The independent laboratory found the following:

  • No presence of Human COVID-19 was detected in all 72 tests;
  • No presence of E.coli was detected in all 72 tests;
  • No presence of Staphylococcus was detected in 70 of the 72 tests. In the other 2 tests, the amount detected was so low it was still described as being ‘near sterile’ (i.e. Total Viable Colony counts of <10). * [Test results are available on request. Email hello@zoonoo.com.]

In the UAE, a UAE Government appointed laboratory, Dubai Central Laboratory, conducted a series of efficacy and durability tests on Zoono Microbe Shield applied to numerous surfaces – steel, glass, plastics, tile and carpet. The results confirmed 99.9% efficacy of Zoono Microbe Shield against Staphylococcus and E.Coli 30 days after the initial coating . In the case of testing Microbe Shield on wood and rubber, the results were still >90% efficacy at 30 days. ** 

Intertek, a global laboratory chain operating under GLP (the OECD Principles of Good Laboratory Practice) has also recently completed testing of Zoono’s Microbe Shield out to 30 days against E.coli, Pseudomonas, Staphylococcus, Enterococcus, Listeria and Salmonella. In all cases results confirmed efficacy 30 days after the initial coating was at >7 Log (efficacy greater than 99.99999%). ***

Zoono also recently commissioned additional testing against E-coli to European standard, EN1500:2013-07 (20 persons), of Zoono’s Hand Alcohol Free Sanitiser GermFree24 by Lab-Test Laboratorium S.C, Poland. Results demonstrated that it meets the requirements of the EN1500 standard for hygienic hand rubs. ****

Zoono products are backed by over 100 laboratory reports proving its efficacy and longevity against a variety of pathogens. It is also completely safe for humans. Globally recognised companies continue to order Zoono products to help them protect their staff, customers and communities from pathogens and infection. It is successfully used in buildings, vehicles, aircrafts, homes and hospitals globally.

Notes:

  1. (*) Test results are available on request. Email hello@zoonoo.com
  2. (**) The Dubai Central Laboratory test results are available on Zoono’s website at zoono.com
  3. (***) The Intertek tests results are available on Zoono’s website at zoono.com
  4. (****) The EN 1500 is a European Standard test method that evaluates the efficacy of a hygienic hand rub by measuring the number of bacteria remaining on the fingertips after contamination and hand rub exposure. A hand rub is defined as a treatment that involves rubbing the hands without the addition of water. It is the standard used in healthcare globally. Test results are available on Zoono’s website at zoono.com

[I hold ZNO shares.]

About Zoono

Zoono Group Limited is a global biotech company that develops, manufactures and distributes a suite of scientifically-validated, long-lasting and environmentally-friendly antimicrobial solutions. Zoono’s mission is to improve health and well-being through innovative, safe, nontoxic and durable germ protection.

Zoono produces sprays, wipes and foams suited for skin care, surface sanitisers, and mould remediation treatments. The products are based on the ‘zoono molecule’, a unique antimicrobial molecule that bonds to any surface and kills pathogens including bacteria, viruses, algae, fungi and mould.

Zoono’s products have received numerous regulatory approvals and the company’s technology claims are supported by independent testing conducted in laboratories worldwide. Zoono is headquartered in New Zealand and its products are available globally.

To learn more, please visit: www.zoono.com

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#ASX Announcements
Last edited 4 months ago

#dividend

Are there any other companies that announce their maiden / inaurgural dividend without fanfare, but simply putting the record date and payment dates for the dividend inside a 'notice of FY20 full year results and key dates' announcement? 

ZNO has mastered the art of being subtle. 

 

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#Company Presentations
Added 2 weeks ago

19-Nov-2020:  Zoono AGM Presentation

[I hold ZNO shares.]  I note their two resolutions put to shareholders at their AGM today were passed by 99% and 99.9% respectively.  I also note that on 6-Nov-2020, BoA/Merrill Lynch served a notice that they were no longer substantial shareholders of ZNO.  In that notice, it was clear that they had been lending ZNO shares to shorters (i.e. short-sellers, see Appendices A & B of the announcement).  I also note that ZNO's share price has been in a downward channel for 4 months and they appear to have broken out of the top end of that channel today if I'm not mistaken.  There's a lot to like about this company.  They are producing the right product at the right time, and their sales are increasing at a good clip.  The market seems to have moved away from so-called "COVID-plays" to "Recovery Plays", and that's OK.  I don't have a problem with that.  However, this is a fast growing company that is highly profitable and doing everything right, including paying dividends, and the demand for their sanitiser and surface treatment products are not going to evaporate when the COVID-19 vaccine(s) are rolled out.  I believe they are just at the start of their growth runway.

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# Longevity Claims/COVID-19
Added 4 weeks ago

05-Nov-2020:  I received the following via email from Zoono Group (ZNO) this morning:

Test Results & Global Media Exposure | 5 November 2020 - Update On Longevity Claims

Update On Longevity Claims 

Germ-busting business determined to let people see the scientific testing evidence that substantiates long lasting anti-viral effectiveness

Zoono, a New Zealand headquartered business that is listed on the Australian Stock Exchange and has offices in the US and UK, is making the results of testing on their antimicrobial products public and emphasising how the results prove longer lasting effectiveness against dangerous pathogens, including viruses and bacteria.

Confusion had previously arisen when it was reported that Zoono had withdrawn claims that their products were effective over long periods – up to 24 hours for their hand sanitiser and up to 30 days for their surface sanitiser. On reflection, Zoono say that their response to queries raised by Suffolk Trading Standards should have been much more focused on the best way to rapidly prove and clarify, rather than allow misconceptions to form. They wish to emphasise that there was no ‘enforcement action’ against them and they had simply volunteered to change product labelling for UK customers during the clarification period. It was a statement by a Zoono customer, not Zoono itself, relating specifically to Covid-19 that triggered the queries.

It is important to explain that no laboratories have been testing specifically with Covid-19 – they use very efficient indicator processes that cover a wide range of pathogens. And this means that even when there is strong evidence regarding effectiveness against human coronaviruses, as in the Zoono case, effectiveness against Covid-19 cannot currently be specifically cited. This applies to all disinfectant products, including hand sanitisers and surface treatments.

The reality is that over 100 laboratory tests have been completed that demonstrate the effectiveness and long lasting nature of the Zoono advanced antimicrobial products – and recently in the UK further tests, both in approved UK laboratories and ‘in situ’ have backed up their value.  A UK police authority is in the process of placing a major order after having the product tested at a renowned Public Health England testing facility – and just last week a Channel 4 Dispatches programme conducting tests in public places and transport reported that a test carried out on a Travel for London bus had shown that the tested surfaces were remarkably pathogen-free. What the reporters did not know was that Transport for London have been using Zoono.

Zoono say that what is necessary is that people understand completely how their products work and how they work best, including using their products correctly, in conjunction with best practice hygiene. They, their partners and their customers are striving for a level of excellence – a ‘hygiene hero’ status that can play a critical role in safeguarding people – not just in the current crisis, but also on an ongoing basis as it should not be forgotten that every year millions are severely affected all over the world from a wide range of germs including, of course, flu and many gastrointestinal pathogens, including norovirus outbreaks. 

Whilst there will be some variables within the spectrum of such widespread testing, all the scientific evidence is showing overwhelmingly that Zoono products have exceptional advantages over ‘traditional’ products that use alcohol and bleach, and that the tests do show that they can be effective for up to the claimed durations. The advantages also include much lower levels of toxicity. Zoono acknowledges that it is not possible to put all of the scientific proof on product labels and it should be clarified, so their revised labelling emphasises ‘scientifically proven’ and ‘longer lasting’ – and the explanation of the advanced science and test results is being provided online and on request. This information can then also be compared to (for example) the time an alcohol-based hand sanitising product might be effective – which is only around 2 minutes. Promoting such facts is considered an essential part of enabling people to consider which products are going to provide protection over the longest periods.

In terms of the UK situation, what has been misdescribed there, is being resolved – although ironically, the Suffolk Trading Standards process has been held up as the laboratory they were using to test Zoono products was forced to shut down when employees there became infected with Covid-19. In the meantime, Zoono has shared the results of expert testing carried out in the UK and many other countries and is making them generally available for others to study.

To read the results of Zoono's latest test results, please click here

To read the Zoono press release, please click here

To read BBC News' London's transport network tests negative for Covid-19 story, please click here

 

Zoono Group Limited
Paul Hyslop
Managing Director
paul.hyslop@zoono.com 

Media Enquiries 
The Capital Network 
Julia Maguire 
+61 2 8999 3699
julia@thecapitalnetwork.com.au

Customer Service & Online Shop
hello@zoono.com

For Wholesale Queries
wholesale@zoono.com

Distributor Queries (per country) 
info@zoono.com

About Zoono Group Limited (ASX:ZNO)
Zoono Group Limited is a global biotech company that develops, manufactures and distributes a suite of scientifically-validated, long-lasting and environmentally-friendly antimicrobial solutions. Zoono’s mission is to improve health and well-being through innovative, safe, non- toxic and durable germ protection.

Zoono produces sprays, wipes and foams suited for skin care, surface sanitisers, and mould remediation treatments. The products are based on the ‘zoono molecule’, a unique antimicrobial molecule that bonds to any surface and kills pathogens including bacteria, viruses, algae, fungi and mould.

Zoono’s products have received numerous regulatory approvals and the company’s technology claims are supported by independent testing conducted in laboratories worldwide. Zoono is headquartered in New Zealand and its products are available globally. 

To learn more, please visit www.zoono.com

--- ends ---

[I hold ZNO shares.]

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#Business Model/Strategy
Last edited a week ago

As mentioned in the AGM, Zoono has recently signed a deal to white-label its products with Fine Hygienic Group Holdings to rollout its products in 70 countries.

This group is one of the pre-eminent FMCG companies in the Middle East and North Africa.

Forbes Magazine has named Fine the ninth most recognized brand in the MENA region, underscoring the incredible strength of the brand in the minds of consumers.

Because Zoono's products are alcohol-free, they can be Halal-certified and this is a massive competitive advantage against incumbent products, for a mostly Muslim consumer base. 

Also, with Fine's brand, 3500+ staff & 70-year history in the region, they have the infrastructure and marketing budget to implement a consumer strategy that Zoono is incapable of doing on its own.

The CEO of Fine Group has worked for Procter & Gamble for 24 years and is an Olympic coach & a marathon runner. Quite a determined bloke.

In terms of financials, its possible to envisage $5-10m within a year or two at a 50%+ gross margin (lower GP% but offset by large volume & no additional opex commitment). A bull case could see Zoono selling $30-40m per annum if the products are successful, which will add $15-20m+ in incremental EBIT per annum.

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#Quarterly Reports
Last edited 2 months ago

14-Oct-2020:  Quarterly Report - Q1 FY21

Financial Highlights:

  • Cash receipts from customers(unaudited) for the quarter ended 30 September 2020 were NZ$15.0M;
  • Positive operational cash flow for the quarter of NZ$2.8M (without the tax payment of NZ$2.4M, operational cash flow would have been $5.2M which compares to the NZ$5.3M for the June 2020 quarter on higher customer receipts);
  • Cash at bank decreased from NZ$10.3M to NZ$7.5M primarily as a result of the Tax and Dividend payments of NZ$7.5M (without these payments cash at bank would have been NZ$15M)
  • An additional positive net receivables / payables (unaudited) balance of NZ$1.9M;
  • Inventories of NZ$14.2M (unaudited) available to meet current demand. Stock is held at strategic global location to enable timely deliveries.

Zoono Group Limited (ASX: ZNO) is pleased to provide an overview of operations for Q1 2021.

Australia / New Zealand

Strong sales and orders continue in Australia and New Zealand (NZ$5.1M) across both the B2B and B2C markets. While B2C sales are important, especially for brand awareness, the B2B sector remains Zoono’s primary focus. B2B sales across the region remain consistent, despite a glut of other competing products in the market.

During the quarter, the Company engaged a digital marketing specialist to help drive growth within the B2C sector via localised market specific programs. The Company also secured additional support (Financial and Human Resources) from New Zealand Trade and Enterprise (NZTE) to complement its growth strategies.

UK & Europe

Zoono promoted Jamal McCleary to the role of General Manager for UK and Europe during the quarter. Originally a Christchurch (NZ) based Zoono distributor partner, Jamal's move to the UK comes after an 8-month induction process completed in the NZ Head Office.

Zoono is working with leading participants in the facilities management, transport, agriculture and healthcare sectors in the UK and EU, while also continuing to build relationships with key customers including Bunzl, Rentokil Initial, Atalian Servest, Killis and One Spray.

Zoono is also progressing well in obtaining regulatory approvals across the EU and continues to gain new customers in Scandinavia, Eastern Europe, Spain and Portugal. In addition, with the Company's products passing the new testing requirements in Germany, the Company is confident of sales growth in the German B2B market, including into new channels in the healthcare, childcare and government sectors.

In the UK, Zoono is continuing to work with Trading Standards in an effort to restore our efficacy and 30-day claims. Zoono has provided Trading Standards with additional test data which it believes sets out a compelling case for approval of its claims.

Asia & China

In China, Zoono is moving to a direct contact model with its customers. For that purpose, Zoono has established a wholly owned foreign entity in Shanghai, to be managed by Zoono's Chinese Regional Manager, Michael Wu, and is building a business development team in that country.

The recently opened Ali Baba international on-line store will be followed later this year by a TMall flagship store. Online sales have made a solid start and the Company will be investing a significant amount to grow both B2B and B2C channels in China.

Regulatory approvals (to hospital grade standard) have been now been received in China and the Company intends to aggressively target the healthcare markets.

Zoono is increasing B2B contact with key customers (unless already covered by existing Distributors) and intends to expand this model in all major markets. For example, IdsMED, Zoono’s channel partner for selected ASEAN countries, continues to place regular orders and, following the United Airlines announcement, a number of Asian airlines are in discussions with the Company about the use of its products in the aviation sector.

USA / Canada

As previously advised, Zoono now fully controls its US distribution and is selling direct within the USA through a newly established subsidiary, Zoono Holdings USA LLC.

The Company is growing the team to meet demand and has signed a new premises lease in Eatontown, New Jersey. This new facility will be the distribution hub for Zoono brands in North, Central and South America. 

Zoono will be launching a new on-line sales website during November to drive B2C salesin the US. The Company is also partnering with national organisations to increase its distribution channels. Animal Health sales also continue to grow in the US.

A new chemical reactor, located in South Carolina, US, that allows the Company to make its own raw materials has been finished at a total cost of NZ$200k* [see Note 1 below].  This minimises Zoono’s reliance on third parties to produce its finished goods and follows establishment of the Company’s bottle manufacturing abilities in NZ.

Following the recent announcement by United Airlines that it will be using Zoono Microbe Shield to spray its entire mainline and express fleet, there is fresh interest from aircraft manufacturers and other airlines to utilise Zoono Microbe Shield to inhibit the colonisation and growth of microbes.

Zoono also has new EPA applications underway (including further testing being undertaken by Nelson Laboratories in New Jersey), which could take several months, following which the Company expects it will be allowed to make COVID related and longevity claims in the US.

India & MENA [Middle East and North Africa]

Following the appointment of Dennis Montgomery as Zoono Regional Manager with responsibility for the Middle East, Africa, Turkey, India, Pakistan and Bangladesh, a new, UAE registered company is being established to protect Zoono’s intellectual property and prevent unauthorised distributors from operating in the Middle East.

South Africa is performing well with large orders under negotiation. A new Egyptian distributor has also come on board. Zoono is expecting significant business from these regions in the next six months.

Animal Health

Significant business continues to be pursued in the veterinary and animal health sector through Zoono’s channel partner, Zoono Animal Health, particularly in New Zealand, Australia, USA, UK, Ireland, Portugal, Hungary and Germany. Pig and poultry are forming the core of this business where Zoono products have already been shown to be very effective against several viral and bacterial groups, including African swine fever** [see Note 2 below].

New operations around the globe continue to be set-up based around best practice to ensure ongoing success and obtaining new customers.

Zoono has recently commissioned a series of further tests, benchmarked to the latest EN1500 Standard (Hand Sanitiser), plus a series of tests for Microbe Shield efficacy on plastics, steel, rubber, carpet and even wood. The testing is being done by the UAE Government Laboratories. It is expected that the test results will allow Zoono to make a series of efficacy and 30-Day durability claims in this region.

Appendix 4C

The Appendix 4C Quarterly Cash Flow Report follows. Payments to related parties of the entity and their associates detailed in the report are to directors.

Summary of Q1 Expenditure

Expenditure incurred during the quarter on business activities was primarily on product manufacturing and operating costs (NZ$3M), staff costs (NZ$1.1M) and administration and corporate overheads (NZ$1.1M). Other expenditure included advertising and marketing (NZ$200k), payments for leased assets (NZ$88k), research and development (NZ$62k) and other selling costs (NZ$600K).

Zoono remains confident of delivering a year-end revenue that surpasses last year.

Notes:

  1. (*) Approximately 66% of this CAPEX was including in Q4 2020 with the remaining spent in the this quarter (Q1 2021)
  2. (**) See announcement dated 9 December 2019 for further information on Zoono’s test results against African Swine Fever at: https://asx.api.markitdigital.com/asx-research/1.0/file/2924-02183223- 2A1191834?access_token=83ff96335c2d45a094df02a206a39ff4

About Zoono: 

Zoono Group Limited is a global biotech company that develops, manufactures and distributes a suite of scientifically-validated, long-lasting and environmentally-friendly antimicrobial solutions. Zoono’s mission is to improve health and well-being through innovative, safe, nontoxic and durable germ protection. Zoono produces sprays, wipes and foams suited for skin care, surface sanitisers, and mould remediation treatments. The products are based on the ‘zoono molecule’, a unique antimicrobial molecule that bonds to any surface and kills pathogens including bacteria, viruses, algae, fungi and mould.

Zoono’s products have received numerous regulatory approvals and the company’s technology claims are supported by independent testing conducted in laboratories worldwide. Zoono is headquartered in New Zealand and its products are available globally.

To learn more, please visit: www.zoono.com

--- click on the link at the top for the full report - including the Appendix 4C ---

[I hold ZNO shares, and I also use their products.  My daughter has a skin condition and can't use alcohol-based hand sanitiser, but she can and does use Zoono's hand sanitiser which does not contain any alcohol - and protects for a lot longer than alcohol-based sanitisers.]

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#Bull Case
Last edited 3 months ago

Zoono attempting to expand into the Chinese market through Alibaba.

Continuing to expand their products globally, Paul & the team are marketing ZNO well.

The next few weeks will be interesting as ZNO chemical treatments/sanitisers are waiting UK regulatory approval. 

 

https://zoonogh.tmall.hk/search.htm?spm=a1z10.1-b-s.w5001-23047121749.3.1517553eJFB8qU&search=y&scene=taobao_shop

 

{I Hold}

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#Results & Dividend
Added 4 months ago

20-Aug-2020:  Zoono Announces Full Year Results and Maiden Dividend   and   Zoono FY20 Results Presentation   plus   FY20 Annual Report   and   Appendix 4E

Fast growing small NZ company listed here on the ASX that are producing and selling exactly the right products at the right time.  ZNO's long-lasting antimicrobial products have been flying over the past year, particularly during the current pandemic.  FY20 Group EBITDA was up 944.5% on the PCP (FY19), AND they're paying dividends too now!

[I purchased a small position in ZNO a couple of weeks ago.]

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#ASX Announcements
Added 5 months ago
Read More
#Company Update
Added 7 months ago

05-May-2020:  Company Update

The market liked it.  ZNO +20.33% today.

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