Biome Australia Limited Report

Canary Capital recently released a detailed report about Biome Australia Limited

(ASX:BIO).Biome is a unique Australian company which markets a range of 13 probiotics, all of which are backed by double blind, placebo controlled clinical trials. The company has experienced remarkable growth in the past three years including FY 2023 with revenue of $7.2m which was up 75% on prior year. This growth has been achieved whilst increasing gross margin from 56% to 59% as well as holding overheads at a relatively stable level, meaning the company is moving steadily towards becoming cash flow positive. Our discounted cash flow valuation based on detailed modelling of the company is $0.66 per share compared to yesterday’s closing price of $0.096.