PharmaZen continues strong capex investment

September 5, 2016

PharmaZen continues strong capex investment

On-going capital investment by biological Company PharmaZen continues to strengthen its balance sheet.

In the six months to June, 2016, PharmaZen had a half-year profit of $290,000 (after interest and depreciation) on turnover of $3.71m compared with a $230,000 profit for the same period last year (turnover $3.63m). Shares in PharmaZen are traded through the Unlisted securities trading platform.

Craig McIntosh, PharmaZen’s Chief Executive, said he was satisfied with the result given the strengthening New Zealand dollar and the higher depreciation costs following a period of investment. EBITDA for the period was $655,000 compared with $536,000 in 2015.

“In the last three years the Company has installed and commissioned a new vacuum dryer, freeze dryer and solvent extraction plant. Investment continues with the conversion of an existing 1,100 sq m building into a GMP compliant manufacturing unit for dry production. In addition, the existing offices and warehouse have been relocated.

Two years ago the New Zealand dollar was trading at about 88c, last year it was 66c and now at 72c.

“The dollar aside, we continue to make progress in many areas of the business with the main highlight being the completion of all regulatory hurdles for the solvent extraction plant, with the first pilot production scheduled for September,” he said.

“The solvent extraction facility creates an entirely new business for the Company, adding high value marine and botanical extracts to the traditional portfolio of dried meat and marine products. Greenshell mussel oil, blackcurrant and other marine oils are a few of the potential opportunities.

“We have received strong interest across the intended range of products and expect to be selling commercial volumes in the fourth quarter,” he said.

The new 1000 kg freeze dryer, commissioned late last year, added an additional 200 tonne of freeze drying capacity to PharmaZen’s annual production. Plans are already under way to extend this facility because of demand.

“We are now targeting the fruit and vegetable sector alongside the traditional meat and fish products.” he said.

PharmaZen’s trading division, Waitaki Biosciences, develops and manufactures a range of natural nutritional ingredients for the dietary supplement and personal care markets.

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