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IT and consumer electronics vendor Harris Technology Group Limited (ASX:HT8) made the leap to protective hygiene product sales in the midst of COVID-19 — and they’ve seen an increase in revenue they believe will outlast the pandemic.
The company has forecast a profit before income tax for the year end of approximately $700,000. This is based on anticipated sales revenue of approximately $13 million.
This compares with a loss before income tax (excluding their discontinued operations) of $732,000 on revenue of $9 million for the year end.
Consequently, this year will not only see a sharp uptick in revenues, but also material profit.
The increase in annual revenue and profit has been driven by growth in Harris Technology’s traditional IT/CE (consumer electronics division) and from its new Pro-Hygiene division.
For more information on Harris Technologies visit their investor portal.
The latter has opened up enormous new opportunities for the group.
The Pro-Hygiene division sells protective hygiene products including face masks, hand sanitiser gels and alcohol wipes.
While there are obvious demands in the current environment, it is anticipated that there will be a substantial increase in the use of these products post-COVID-19.
There is increased public awareness of the importance of personal hygiene and the need to maintain high standards of cleanliness in places such as businesses, public transport and homes.
Governments and health organisations will be better prepared for spikes in demand in the future.
They are likely to stock a much more extensive range of protective hygiene products after experiencing shortages during the pandemic.
As a result, Harris Technology’s transformation to a profitable enterprise could well be the start of a strong and sustained earnings growth trajectory.
Harris Technology’s move into the PPE industry took advantage of the company’s years of experience in product sourcing and relationship-building. This is what sets Harris Technology apart from the competition.
Harris Technology was authorised by China’s Jointown Pharmaceutical Group, one of the leading medical supply and distribution companies in China, to distribute its Jointown and Aumacom face masks.
The company had sold an initial 30,000 face masks in March, and a new shipment of 200,000 TGA approved face masks arrived in Australia for sale in late April.
Harris Technology has been appointed by China-based GOTDYA Fine Chemical to market its GOTDYA branded hand sanitiser products in Australia.
The first shipment of 90,000 units of GOTDYA brand sanitisers arrived this month. These are now being sold in Australia.
Orders have been placed for a further 225,000 units of hand sanitisers.
Harris Technology has expanded its product range by securing the non-exclusive Australian distribution rights for the ‘Tender Kiss’ brand of alcohol tissues from Guangzhou Baihua Sanitary Products.
The tissues are being imported from China, and sales of the brand will commence this month.
Harris Technology is continuing to develop strategies to expand its online offerings in the IT/CE division, to build on the momentum generated in the first half of 2020.
Harris Technology Group (ASX:HT8) is one of Australia’s largest resellers of technology products and solutions aimed specifically at small and medium businesses. Harris Technology is listed on the Australian Stock Exchange, delivering value to consumers by providing great products at great prices.
