Zoono Faces Cash Constraints Despite Promising Shelf-Life Extension Progress
Zoono Group Limited reports strong progress in its shelf-life extension technology trials across multiple continents, with successful UK supermarket trials paving the way for a national roll-out in FY26. Despite a quarterly operating cash outflow, the company expects improved sales and sufficient funding to meet its near-term objectives.
- 34 active shelf-life extension trials across 12 countries and 4 continents
- Successful in-store trials with two major UK supermarket chains
- Expected national roll-out in UK stores during Q1 and Q2 FY26
- Q4 orders worth NZ$244K confirmed from Asian pharmaceutical and Australian Animal Health sectors
- Reduced operating overheads and planned funding initiatives to support growth
Expanding Shelf-Life Extension Trials Globally
Zoono Group Limited (ASX: ZNO) has demonstrated significant momentum in its shelf-life extension technology, conducting 34 trials across 12 countries spanning the UK, Europe, Asia, Africa, and Australia. This represents an increase of five trials from the previous quarter, reflecting growing interest from supermarket chains, food producers, packaging companies, and exporters.
Initially focused on soft fruits, the trials have broadened to encompass a wider variety of fresh produce including other fruits, vegetables, meat, fish, poultry, bread, ready-meals, and even fresh flowers. All trials to date have reported successful outcomes, underscoring the technology’s versatility and potential market appeal.
UK Trials Set Stage for National Roll-Out
The most advanced progress is evident in the UK, where two large supermarket chains conducted in-store trials with strawberries in March 2025. These trials were successful and are expected to lead to a full national roll-out across all stores in the first half of FY26. This development marks a critical commercial milestone for Zoono, potentially unlocking a significant revenue stream from one of its key niche markets.
Growth in Asian and Australian Markets
Beyond the UK, Zoono is advancing its presence in Asian markets including China, Korea, India, and Japan. The company anticipates further orders in Q4 from a major Japanese pharmaceutical company, targeting the textile industry, alongside repeat orders from the Australian Animal Health sector. These combined orders are valued at NZ$244,000 and are expected to be received in the upcoming quarter.
Financial Position and Operating Efficiency
Despite a net operating cash outflow of NZ$527,000 for the quarter ending March 31, 2025, Zoono has successfully reduced its operating overheads, with staff costs at NZ$121,000 and administration expenses at NZ$716,000. The company holds cash reserves of NZ$192,000 and maintains access to additional funding options, including potential placements or rights issues, to support its operational and commercial objectives.
Zoono’s management remains confident that with the expected increase in sales revenues in Q4 FY25 and Q1 FY26, alongside inventory valued at NZ$6 million, the company can materially reduce its cost of goods sold and sustain its business activities without immediate capital raises.
Looking Ahead
With a clear focus on commercialising its antimicrobial shelf-life extension technology, Zoono is positioning itself to capitalize on growing demand for fresh food preservation solutions globally. The upcoming UK national roll-out and expanding Asian orders will be key indicators of the company’s ability to translate its innovative biotech solutions into sustainable revenue streams.
Bottom Line?
Zoono’s upcoming UK roll-out and expanding international orders will be pivotal in validating its commercial trajectory amid tight cash reserves.
Questions in the middle?
- How quickly can Zoono scale production to meet anticipated demand from UK supermarkets?
- What are the margins and pricing models expected for the shelf-life extension products in new markets?
- Will Zoono pursue additional capital raises if sales ramp-up is slower than projected?