Zoono Group Limited has responded to ASX queries confirming ongoing collaboration with OSY Group Limited, acknowledging delays in meeting sales targets but highlighting steady contract progress and future order potential.
- Exclusive agency agreement with OSY remains active despite missed sales benchmarks
- No minimum annual sales targets met yet in UK, Europe, or Rest of World regions
- Initial non-material orders received in FY26 with expectations of growth
- Zoono maintains compliance with ASX continuous disclosure obligations
- Delays attributed to customer adoption pace, not product or partner failure
Background on the OSY Partnership
Zoono Group Limited (ASX, ZNO) has provided a detailed response to the Australian Securities Exchange (ASX) following a price query concerning its exclusive agency agreement with OSY Group Limited. Signed in early 2024, this agreement tasked OSY with promoting Zoono’s antimicrobial products within the food supply chain sector, targeting major supermarket chains and packaging companies across the UK, Europe, and other global regions.
Sales Benchmarks and Market Reality
While initial expectations were optimistic, with minimum annual sales benchmarks set at NZD 2.6 million for the UK in the first year and similar targets for Europe and Rest of World regions, Zoono confirmed these targets have not yet been met. The company reported that receipts for the financial year ended June 2025 did not include any sales linked to the OSY agreement, and although some initial orders have been received in FY26, these remain non-material.
Zoono attributes the delay not to any failure of its technology or OSY’s efforts but rather to a conservative approach by UK supermarket chains in adopting the new antimicrobial solution. This cautious market adoption has slowed the pace at which minimum sales thresholds are triggered.
Ongoing Communication and Disclosure Compliance
The company emphasized its close and regular communication with OSY, including detailed updates on customer engagements and contract negotiations. Zoono asserts it remains fully compliant with ASX Listing Rule 3.1, ensuring timely disclosure of material information. The company also highlighted several recent exclusive contracts involving OSY and Zoono with packaging firms in the UK, South Africa, and Australia, signaling ongoing commercial traction.
Looking Ahead
Despite the missed sales benchmarks, Zoono confirmed it has no current intention to terminate the OSY agreement. The company remains confident that material orders will be placed in FY26, initially small but expected to grow over time, eventually meeting or exceeding the minimum targets. Zoono has committed to updating the market promptly should any significant orders be received.
This measured update underscores the challenges of introducing innovative hygiene technology into conservative retail sectors but also reflects Zoono’s strategic patience and ongoing partnership efforts to unlock future growth.
Bottom Line?
Zoono’s patient approach with OSY highlights the delicate balance between innovation adoption and market realities in the food supply chain sector.
Questions in the middle?
- When will Zoono realistically expect to meet or exceed the minimum sales benchmarks with OSY?
- What specific barriers are UK supermarkets citing for their conservative adoption of Zoono’s technology?
- How might delays in customer adoption impact Zoono’s broader revenue forecasts and investor confidence?