Zoono Slips 40% as Multisteps Deal Delivers Smaller Near Term Orders

Early Multistep Orders Come In Light, Testing Short-Term Expectations

Zoono (ASX: ZNO) is a stock we have been tracking closely over the past few weeks, mainly on the back of its new five-year deal with Multisteps, the largest packaging producer in Africa. The original agreement was valued at NZ$15M, with deliveries expected to begin in December 2025.

The latest update shows that near-term revenue will be more modest, with only NZ$182K scheduled for January. This smaller initial shipment likely reduced the short-term expectations that some investors had priced in, as many may have anticipated higher volume orders or a stronger upfront commitment.

Even so, the core fundamentals of the deal remain firmly in place. The five-year minimum of NZ$15M still stands, and that is the real anchor for the long-term value. The market is reacting to short-term catalysts while the more meaningful part of the agreement is the multi-year revenue visibility it provides.

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Global Packaging Leaders Begin to Back Zoono’s Technology

What still makes this deal particularly compelling is the commercial momentum building behind Zoono’s packaging technology. A few weeks ago, the company announced a partnership with a major European food packaging manufacturer in the UK, and this new agreement marks its first entry into the African market.

It signals that global packaging leaders are beginning to recognise Zoono’s solution as a credible way to extend shelf life, reduce waste, and improve efficiency across fresh produce supply chains. For a company at this stage, that shift in customer quality is just as important as the revenue itself.

Citicorp increases its substantial holdings to 5%

In addition to the deal update, today’s announcement also revealed that Stephen Hensey from Citicorp has increased his holding to 5.7 percent. That is always a constructive signal. When an institution steps up its position, it usually reflects growing confidence in the company’s long term outlook rather than a short term trade. It adds another layer of credibility to the broader commercial momentum we have been seeing from Zoono.

Zoono Expands Across Asia as Global Trial Pipeline Grows

Zoono’s latest quarterly update also shows steady progress in Asia, where the company continues to build out its presence across China, Korea, and India. In the first quarter of FY26, Zoono secured additional orders from a large Japanese pharmaceutical company that will use its products in the tactile industry.

Alongside its partner OSY Group, the company is now running fifty active trials, five more than last quarter, spanning four continents and involving major supermarket chains, food producers, packaging companies, and exporters. It is the kind of gradual commercial expansion you would expect from a company still proving out its technology.

The Investor’s Takeaway for Zoono

At the same time, Zoono remains firmly in its early stage build out phase, and the financials reflect that reality. For the period ending 30 June, the company reported a gross margin of negative 24% percent and a net profit margin of negative 312 percent.

These results underline the operational and scale challenges that still need to be overcome before Zoono can move toward sustainable profitability. Given the modest initial purchase orders and the size of the addressable market, it is understandable that investors remain cautious about the scalability of the model and the clarity of the path to profitability.