Singapore’s Zenyum logs adjusted profits in its largest markets, CEO says

Zenyum founder and CEO Julian Artopé / Photo credit: Zenyum

Zenyum, a Singapore-based oral care startup, recorded US$22 million in losses for the financial year (FY) ending April 2022, more than double the preceding year’s figure.

This is despite its revenue rising to US$21 million during the same period, according to its latest audited filings obtained from VentureCap Insights.

However, Zenyum’s numbers have improved since then, its founder and CEO Julian Artopé said in a statement sent to Tech in Asia.

A major contributor to significant losses in FY 2022 was its selling and distribution expenses, which surged 90% to US$27 million.

This can be attributed to marketing spending for capturing consumer mindshare, which could have long-term returns, Artopé said. Such expenses also include product research and software development costs.

Since then, the startup has controlled its spending. Its revenue for FY 2023 was 2.8x that of its selling and distribution expenses, up from 0.8x the year before, he said.

Based on results for this year to date, Zenyum expects to cut its net loss by another 63% for this financial year (FY 2024).

“Our largest markets are already EBITDA profitable,” he said.

Artopé added that improved brand awareness, as well as reduced competition due to many brands shutting down, propelled such revenue growth, which was achieved despite the company operating in a non-essential segment during the pandemic.

He also hopes the dental sector will return to strong growth after years of relative stagnation.

Runway until December 2024

While Zenyum acknowledged in its financial statement that continued losses could affect its ability to continue operating, its management expressed confidence and “reasonably expects” that the company has adequate resources to continue as a going concern and achieve profitability.

Zenyum’s auditors also agreed with the management’s assessment of the company as a going concern.

The company’s cash and cash equivalents went from US$20.5 million in FY 2022 to just US$4.5 million as of April 2023, the filings stated.

Loss of employees