EZZ continues to capitalize on growing skincare and health supplement markets across Asia Pacific

EZZ Life Science closed the fourth quarter of fiscal 2022 with $10 million in the bank to fund its expansion strategy.

EZZ Life Science’s (ASX:EZZ) fourth quarter results (Q4 FY2022) were highlighted by increased sales, with customer revenue increasing 16% to $4.6 million from the prior quarter .

The genomics life sciences company aims to improve the quality of life and human health by developing and selling products supported by genomics research and development.

EZZ’s products address four key human health challenges: genetic longevity, human papillomavirus (HPV), helicobacter pylori and weight management.

The company, which was founded in 2019, remains focused on investing in the future of consumer health by promoting its products and distributing them through e-commerce platforms in Australia, New Zealand and in China – expanding worldwide.

In the fourth quarter of fiscal 2022, the New South Wales-based company launched a cross-border e-commerce store on Douyin, the mainland China version of TikTok. This was a major contributor to the increase in customer revenue during the period – having generated sales of $85,000 in the first 22 days.

The company’s operating cash inflows remained positive during the quarter.

As for the company’s cash position, it remained strong with a balance of over $10 million as of June 30, 2022, which included a slight increase of $90,000 in the bank.

China 618 Shopping Festival

In the fourth quarter of fiscal 2022, China’s 618 shopping festival was another opportunity to increase customer revenue and recover some lost sales due to COVID-19.

Sales of EZZ from the festival exceeded $650,000, with the flagship product being its bone growth capsule. Bone Growth Capsules was ranked as the No. 1 product in its children’s nutritional supplement category on Tmall Global for sales, generating a total revenue of CNY 1.7 million (AUD$364,000).

Expansion plans

The company has the exclusive rights to wholesale the EAORON brand of skin care products to pharmacies, supermarkets and specialty retailers in Australia and New Zealand, as well as its own products launched in 2020 under the brand. EZZ.

EZZ branded products, which currently number 17, are distributed to retailers and customers across Australia, New Zealand and China, with plans to expand to other international markets in the near future. coming.

Global skin care market

The global skincare market has grown at a compound annual growth rate (CAGR) of 5% over the past five years to reach a valuation of over US$145 billion in 2021, according to reports from industry.

Facial care accounts for over 75% of the market, with body care and skin care kits accounting for 14% and 6% respectively.

Experts predict that the global skincare market will continue to grow at a CAGR of 5% over the next five years to reach over US$192.7 billion by 2027.

The skincare market is dominated by Asia-Pacific, which accounts for more than 35% of the global market, through platforms such as Tmall and Douyin.

The Australian skincare market grew at a five-year CAGR of 4% to reach US$3.7 billion in 2020.

Through a distribution agreement, EZZ has secured a share of the Australian market by importing and distributing EAORON skincare products to pharmacies, supermarkets and specialty retailers in Australia and New Zealand.

Global health and wellness supplements market

The global health supplements market grew at a five-year CAGR of 6% to be valued at over US$358 billion in 2021.

Vitamin and dietary supplements accounted for more than 50% of the global market.

It is expected to grow at a CAGR of 6.3% over the next eight years, estimated to reach US$620 billion by 2030.

Like the skincare market, the Asia-Pacific region holds the largest market share, with around 35% of total revenue.

EZZ has been expanding its footprint in this market since 2020. The company formulates, produces, markets, and distributes its own EZZ-branded health supplement products, with a focus on those with high consumer demand, including probiotics, immune and energy tablets, hair growth. iron/coffee spray and jelly.

Hair products

Also in the fourth quarter of fiscal 2022, EZZ launched four new products, including a scalp exfoliator, anti-frizz hairspray, hair growth hairspray, and hair mask.

The products contain local and natural ingredients, with some organic elements.

EZZ Insights

EZZ has ambitious plans to expand and capitalize on the growing demand for skin care and various health products.

The company hopes to expand its distribution points over time, both at the point of sale and in existing channels – adding to its collection of global stores, similar to the one launched on Douyin in the fourth quarter of fiscal 2022.

EAORON is seen as an integral part of the company’s operations, with plans for more pharmacy chains, supermarkets and e-commerce channels in Australia and New Zealand planned for the future.

In addition to continuing to distribute and endorse EAORON products, EZZ will continue to work on its own products, continuing to track and compete with its rivals.

EZZ aims to transition its manufacturing process in-house for the benefits of greater adaptability, better quality assurance and improved cost efficiency.

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