Unexpected patent issues have taken up considerable time for Blis Technologies which has welcomed positive full-year financial results.
The Dunedin-founded probiotics company posted improved after-tax net profit of $800,000 — up on the previous year’s $600,000 result — for the year to March 31. Revenue of $12.6million was 10% higher on the previous year while ebitda of $1 million was a 26% improvement on FY24.
Chairman Geoff Plunket and chief executive Scott Johnson said in the review that patents filed by the company’s largest customer in Europe and a party associated with that customer became public in September last year.
Blis maintained the patent applications contained confidential information provided under earlier agreements. Since the public release of the patent filings, Blis had been in negotiation with its customer “to reach an acceptable outcome for Blis”.
Both parties were working to conclude an agreement within the immediate future. An agreement would enable the parties to refocus on growing sales of Blis products in the market, they said.
The increased revenue was underpinned by solid growth across the company’s finished product sales and modest growth in its business-to-business revenue.
Higher royalty revenue was partially offset by some softness in ingredient revenue from European customers. Growth was achieved in other ingredient markets.
The company sold both probiotic ingredients and finished product into the United States.
The US tariff regulations provided an exemption for bulk probiotic ingredient imports but the Blis-finished products for sale on Amazon US and US web store sales were subject to a general 10% tariff.
The tariff impacts, although not material to the overall company result, had resulted in an Amazon US and US web store price increase being implemented through April this year.
The company entered FY26 “with cautious optimism”. While macroeconomic conditions remained mixed, demand for science-backed probiotics continued to grow, they said.
sally.rae@odt.co.nz
