Zoono (ASX:ZNO) share price slumps 16% on quarterly update

Despite some positive advancements, shareholders continued the selling pressure on Zoono shares today.

| More on:
A woman wearing glasses peers closely at something, ready to spray antimicrobial treatment.

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 slipped into the red in today's session. The dip arrives as Zoono announced its progress for the quarter.

Let's comb over the company's results and highlights in finer detail.

Quick refresher on Zoono

Zoono is a biotechnology company that specialises in environmentally-friendly antimicrobial products.

Its mission statement centres on providing non-toxic and sustainable germ protection to individuals across the globe.

Zoono has a market capitalisation of $108 million.

Zoono's quarterly results

The company has realised $28.8 million in cash receipts for the full year. This includes unaudited sales revenue of $6.6 million for the quarter.

Zoono also announced a suite of new sales and distribution agreements that are now in place. These include sales and distribution agreements in France, Russia, China and India.

For instance, Zoono is now selling to "several French multinational customers," and it has signed three new distribution agreements in China.

Furthermore, a new distributor in India placed a large 100,000-litre order, and "sales have been particularly strong in the public sector" in Russia.

Zoono exited the quarter with $7.4 million in cash and receivables. All positive signs for the Zoono share price.

Additional takeouts driving the Zoono share price

In addition to these agreements, Zoono announced a selection of "new business opportunities" in the report.

To illustrate, Zoono described advancements in "mould remediation" with a partner in South Africa. This activity aims to "prevent black mould growing on cardboard packaging".

Moreover, Zoono UK has started a strategic partnership with a third party in order to develop "a unique delivery system" for its Zoono Z-71 microbe shield.

The company is testing this system using "existing air conditioning infrastructure" in large buildings.

The proprietary process, which is owned by the third party, converts Zoono's solution into a gas.

As per the company, the gas "is then pumped throughout the building" via the air con. Because the "gasified Zoono is heavier than air, it settles on (and treats) the surface" it lands on.

Again on the the Z-71 shield, it displayed a "99.99% efficacy against [preventing] Coronavirus MHV-3 after 30 days" in trials conducted on the product in Brazil.

Despite these advancements, shareholders continued the selling pressure on Zoono shares today.

Zoono shares closed the day at 66 cents apiece, a 15.92% drop into the red from the market open.

Zoono share price snapshot

The Zoono share price has posted a year-to-date loss of nearly 50%, extending the previous 12 month's loss of 70%.

Both of these returns have lagged the S&P/ASX 200 Index (ASX: XJO) return of ~23% over the past year.

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Market News

Silhouettes of nine people climbing a steep mountain to the top at sunset, and helping each other along the way.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a wild ride this Thursday.

Read more »

Two men in hard hats and high visibility jackets look together at a laptop screen at a mine site.
Gold

Down 50% in a year, time to pounce on this beaten-down ASX 200 gold stock?

A leading expert offers his verdict on this beaten-down ASX 200 gold miner.

Read more »

A view of competitors in a running event, some wearing number bibs, line up together on a starting line looking ahead as if to start a race.
Best Shares

Best ASX 200 share of each market sector in FY25

Did you own any of these ASX 200 winners in FY25?

Read more »

children and teacher in childcare education setting
Broker Notes

Why did Macquarie just re-rate G8 Education shares?

G8 Education shares are down 23% this year.

Read more »

IPO written in yellow and stuck in the air.
IPOs

End of the IPO drought: GemLife listing one of the biggest of the year

The GemLife IPO is the third major ASX listing in less than a month.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Share Market News

Why brokers says these ASX dividend stocks are top buys for income investors

Want an income boost? Take a look at these stocks that brokers rate as buys.

Read more »

A man looking at his laptop and thinking.
Broker Notes

After crashing more than 21% yesterday, does Macquarie rate Helia shares a buy?

Should I buy the big dip on Helia shares? Here’s Macquarie’s latest share price forecast.

Read more »

Happy work colleagues give each other a fist pump.
Broker Notes

Buy this ASX 200 share that is having a 'milestone year'

Bell Potter has good things to say about this high-flying stock.

Read more »