Zoono Group Ltd (ASX:ZNO) continues to elicit strong interest in the market at a time when most counters are under pressure amidst the spread of the coronavirus. The signing of a distribution agreement for the distribution of the company’s products is the talk of the town, given its potential impact on the company’s sales.
China Distribution Agreement
The company has signed a distribution agreement with Eagle Health Holdings Limited. Under the terms of the agreement, Eagle Health will arrange for bulk importation of Zoono’s formulations to its wholly-owned pharmaceutical facility in Xiamen China. Eagle Health is also to carry out labeling, packaging, and distribution of the products into its channels.
Zoono Group has also granted Eagle Health exclusive distribution rights for its formulations that will have the renowned and trusted Eagle Logo. The distribution agreement is a big deal for Zoono Group as Eagle Health boasts a vast portfolio made up of more than 300 product stores and franchised stores throughout China. In addition, the company has a further 271 distribution partners set to place the products into a circa of more than 30,000 outlets across the country.
Zoono Products for Coronavirus
The signing of the distribution agreement coincides with the confirmation of test results that have shown Zoono’s Z-71 Microbe Shield is 99.99% effective against Covoid-19. Covoid-19, also known as the coronavirus, continues to cause havoc around the world, having shown the ability to survive on the surface for up to 9 days.
The positive test results further demonstrate the ability of Zoono Group products being part of the solution in combating the further spread of the coronavirus. Likewise, the company remains well-positioned to generate significant value as people around the world turn to its products as a way of avoiding contracting the virus.
Similarly, there is already unprecedented growing interest in the company’s technology and products as it continues to prove its effectiveness in combating further spread. Eagle Health is already receiving accelerated co-operation from local government in China that wants it to expand its pharmaceutical facilities and registrations for the delivery and distribution of Zoono products.
With Chinese authorities placing top priority on companies with products and services associated with combating and controlling coronavirus, Zoono Group stands to be one of the biggest beneficiaries. The three-year distribution agreement will see Eagle Health purchase products worth NZ$1.5 million in the first 12 months set to increase to NZ$2.3 million in the second year and NZ$3.1 million in the third year.
The Chinese distribution agreement should help shore up the company’s bottom line. The company is fresh from reporting half-year results that show after-tax loss shrinking to NZ$727,944 compared to NZ$1.4 million reported year earlier.
The company’s global sales made up of both offline and online sales also continued to increase thanks to increased brand awareness of the company products. Operating revenue increased to $1 million due to increased orders. Likewise, the company has signed a distribution agreement poised to expand the company’s products reach into agriculture childcare as well as hotel sectors in China and Vietnam.