Zoetic International PLC (LON:ZOE) has reported sharply reduced losses in its first half as the firm completed its transition to purely focus on cannabidiol (CBD) and away from its legacy natural resources business.
In its results for the six months to September 30, 2020, the company reported a pre-tax loss of £1.13mln, narrowed from a £4.04mln loss a year earlier, while revenues came in at £0.05mln.
The company said its transition to a CBD company was now “substantially complete” and that it has commenced a “significant roll out” of cannabis products post period end while operating expenses had been cut by 65% year-on-year.
Zoetic also said it had signed two international distribution agreements, while post-period it said it has made “significant further progress” with distribution and sales of its products, particularly through an agreement with the American Trade Associations Council (AATAC).
“The six months ended 30 September 2020 was hugely significant for the Group as we transitioned to focus purely on CBD. The Period only saw limited initial sales of our CBD products as we were selling online only, and the physical store rollout had not yet begun. However, post period end we have enjoyed significant traction, particularly through the AATAC distribution agreement,” Zoetic’s co-chief executive Trevor Taylor said in a statement.
Looking ahead, the co-CEO said the corporate strategy is “very much geared towards growth” and that with its restructuring complete it will now seek to further extend its international footprint, widen its market share and broaden the availability of its products.
“There is much in store for Zoetic in the coming months, and we look forward to providing further regular updates”, Taylor said.