Blis' revenue for the year to March more than doubled to $5.6million and it expects total trading revenues for the next financial year of more than $8million, and to book a maiden profit.
The $816,000 loss was Blis' fifth-smallest during the past 15 years. Its consecutive losses since 2001-02 now top $33million.
Chief executive Brian Watson said while the $816,000 deficit, down from $1.37million a year earlier, was disappointing, structural change within the company had added expenses which affected the result.
"We expect to report a net surplus for the year to March 31, 2017,'' he said in a statement yesterday.
Blis shares were down almost 9%, at 3c following the announcement.
Blis was founded on a natural antibiotic to control streptococcal throat infections and now manufactures lozenges, sprays and additives for dairy products, its mainstay product being its Blis K12 throat guard.
Craigs Investment Partners broker Peter McIntyre said Blis had made "solid progress'' during the past three years, but needed to strictly control expenses and grow its China revenue.
"They have got to focus on growing the Chinese market, where there's potentially exponential [sales] growth,'' he said.
The board said its $1.2million cash reserves were enough to meet capital and working capital requirements.
Mr McIntyre said with $1.2million cash in hand and annual operating outflows of $500,000, there was "not a lot of room for error'', to avoid having to go to shareholders for more capital.
He noted Blis was holding more than $17million in tax losses, which can be utilised once it books a profit, which would be good for shareholders.
Sales rose across all export destinations, up $1.28million to $2.11million in Europe, up $806,000 to $1.47million in North America, up $479,000 to $1.16million in Australasia. Asia, including China, rose by $512,000 to $753,000.
Mr Watson said while sales to Asia had increased, China sales remained slow due to "the long cycles'' to meet regulatory requirements and restrictions on product formats.
He said the increase in company costs included transition costs of him replacing in February outgoing former chief executive Dr Barry Richardson, who then took on some specific projects for the board.
Mr Watson said increased costs were required to meet the company's growth targets and to ensure Blis was resourced to meet strategic objectives.
``This has involved outsourcing of specialised personnel until those resources are internalised. However, good progress has been made with the recent key appointments of quality control manager and chief financial officer,'' he said.
He said some of the $816,000 deficit was associated with replacing discoloured product in Europe, which was reported to the market last November.
He said benefits were were now "flowing through'' for Blis, from its long term investment in regulatory approvals and more recent broadening to include manufacturing part-finished goods, consumer products and other food products.
In January this year Blis overcome a major hurdle in getting its probiotic health product into the US, having gained approval from the powerful regulator, the Food and Drug Administration.
Mr Watson said revenue from ingredients, consumer products, part-finished goods and nutritionals were all higher than for the previous year.
"Significantly'', both Europe and North American revenues continued to grow, being up $2.11million, or 155% and $1.47 million, or 121%, respectively, he said.
