Blis posts seventh consecutive loss

Blis's oral probiotics are sold in markets around the world. File photo / APN

Biotechnology company Blis Technologies has posted its seventh consecutive loss - up 187 per cent from the previous year's $482,000 loss to $1.38 million in the red.

While the company remains well financed after $3 million equity raising last year, since 2005 it has cumulatively lost more than $6.3 million.

Blis's oral probiotics for sore throats and bad breath are sold in markets around the world including Asia, Australasia, Europe, the United States and Canada.

Craigs Investment Partners broker Peter McIntyre said the main problems in the past year had been the lack of an expected uptake in sales in the United States and the loss of a co-development of infant formula with industry giant Nestle. Both had been compounded by the strength of the New Zealand dollar against the greenback.

"It has been a tough year for them. They had expectations of greater [US] sales which didn't eventuate," McIntyre said.

While losing Nestle as a strategic backer was a "big blow" for Blis, McIntyre said the company had funds in place from the $3 million capital raising.

In its full year to March report, chief executive Barry Richardson said "overall the 2011 operating and financial performance disappointed".

Blis had cut fixed costs and was continuing to reduce variable costs in manufacturing, Richardson said.

"These initiatives are expected to reduce the operating deficit in the 2012 financial year, which together with a modest commitment, can be funded from existing cash reserves," Richardson said.

Because it was taking longer than expected to build sales in the United States, directors were considering alternative sources of funds, he said.

- OTAGO DAILY TIMES