Why the Zoono (ASX:ZNO) share price is tumbling 7% lower

The Zoono Group Ltd (ASX:ZNO) share price is under pressure and tumbling 7% lower on Thursday. This leaves it close to a 52-week low…

| More on:
a trader on the stock exchange holds his head in his hands, indicating a share price drop

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Zoono Group Ltd (ASX: ZNO) share price is under pressure on Thursday.

In afternoon trade the biotech company's shares are down 7% to 73.5 cents.

This leaves the Zoono share price trading within touching distance of its 52-week low of 71 cents.

Why is the Zoono share price under pressure?

Investors have been selling Zoono shares following the release of its half year results.

For the six months ended 31 December, the company reported a total revenue of NZ$14.4 million and a net profit before tax of NZ$2.7 million. This compares very favourably to revenue of NZ$1.9 million and a loss before tax of NZ$0.7 million a year earlier.

Zoono's growth was driven by increased demand for its anti-microbial solutions because of COVID-19. It is worth noting that the prior corresponding period was before the emergence of COVID-19.

COVID-19 tailwinds and headwinds

Interestingly, COVID has both benefitted and hindered its performance. While it is highly unlikely that its sales would have reached this level without a pandemic, negative COVID impacts have restricted its sales growth.

Management explained: "While the Company has, overall, undoubtedly benefited from the impact of the COVID-19 pandemic, in many respects, the opposite has been the case in the review period in that the disadvantages have outweighed the benefits. Confidence in and around the workplace has been adversely affected and, with the Company's business being primarily focussed on the B2B sector, several major supply agreements have been put on hold or deferred simply because either the businesses or the buildings housing them (or both) have been closed and/or the employees not at work."

Management estimates that these negative impacts total NZ$6 million to NZ$7 million.

Outlook

Possibly weighing heavily on the Zoono share price today is its outlook for the remainder of the year.

Despite its strong revenue growth in the first half, management isn't expecting its full year growth to be as explosive. It is merely aiming to surpass last year's revenue.

Zoono's Managing Director and CEO, Paul Hyslop, commented: "We are very pleased with the momentum we were able to maintain throughout the first half of the financial year. Moving forward, our focus will continue to be the B2B markets in the Americas, UK/EU, China/ASEAN and MENA/India."

"While the home markets of NZ and Australia are important, the sales volumes available in the larger off shore markets demand that Zoono continues to aggressively go pursue new business globally. We remain confident of delivering a year-end revenue result that surpasses last year."

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

Bored man sitting at his desk with his laptop.
Share Fallers

Why Catalyst Metals, Duratec, Nufarm, and Rio Tinto shares are dropping today

These shares are ending the week in the red. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Dexus, Mayne Pharma, Nufarm, and Treasury Wine shares are falling today

These shares are having a tough session on Thursday. But why?

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why James Hardie, Mayne Pharma, Nufarm, and Resimac shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Kogan, Monash IVF, OFX, and ResMed shares are falling today

Why are these shares taking a tumble today? Let's find out.

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Share Fallers

Why Appen, DroneShield, Gentrack, and New Hope shares are dropping today

These shares are starting the week in the red. But why?

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Dexus, Dusk, Fletcher Building, and Paladin Energy shares are falling today

These shares are ending the week in the red. But why?

Read more »

Couple look at a bottle of wine while trying to decide what to buy.
Consumer Staples & Discretionary Shares

Treasury Wine shares: Buy, hold, or sell? Here's Macquarie's take

What is Macquarie forecasting for Treasury Wine shares amid the CEO’s unexpected exit?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Newmont, NRW, Peet, and Treasury Wine shares are dropping today

Let's find out why investors are selling down these shares on Thursday.

Read more »