RE: Results are out.28 Jun 2023 10:24
Some extracts from the "Outlook"
ProBiotix has traded strongly since the beginning of the new financial year and has a strong order book from existing and new customers. Our CEO Steen Dannemann Andersen is already leveraging his industry-leading contacts to introduce
ProBiotix to new customers, some of which – including SymbioPharm one of the top three probiotic brands in Germany – have already placed a significant order.
We are also enjoying continued strong growth in e-commerce sales direct to consumers albeit ongoing issues with our supply chain has impacted on the availability of our best-selling product CholBiomeX3. The Company identified a new
manufacturer in 2022 and first orders were supplied in H1 2023.
CEOs strategy
...
In the first phase of implementation of this strategy, we will concentrate on expanding our sales structure in Europe and the Middle East, and building a platform for growth in North America, before moving in the medium term to explore the potential of additional markets in the Asia Pacific region, South America and South Africa. We will also seek to prove the potential for direct-to-consumer sales, focusing initially on the UK.
This strategy presents a clear five-year pathway for ProBiotix Health to build annual sales of £10 million while shifting the balance of the business from deriving 85% of turnover from bulk sales of LPLDL® in 2022 to making 85% of sales from finished products. To support this new strategic focus and ensure the delivery of the expected results we will need to make changes to the internal structure of the business and recruit additional personnel, including a
sales director for Europe and the Middle East and new sales manager for North America, together with an operations manager and a development scientist to add impetus to our product development.
Recruitment and additional staffing costs mean that whilst we expect sales to grow in 2023 the additional investment will impact on profitability in 2023, but will form a much stronger platform to deliver growth and shareholder value in the medium and longer term.
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