Biome FY24 Financial Update
Notable Highlights:
- The company achieved an 80% increase in sales revenue, reaching $13.01 million in FY2024.
- International sales grew by 95%, indicating successful market penetration beyond Australia. This opens up considerable opportunities for further global expansion.
- Q4 sales revenue reached $3.8 million, up 88% compared to the previous corresponding period. This implies an annualised run rate of about $15 million, suggesting momentum is building.
- Biome achieved positive EBITDA in the second half of FY2024, demonstrating that their growth translates into profitability, a crucial milestone for a growing company.
- The gross margin exceeded 60%, up from 59% in the previous year. This improvement in profitability alongside revenue growth is a positive indicator.
- Same-store sales in the Australian pharmacy channel grew by 75%, showing strong organic growth in their primary distribution channel.
- The company secured high-value, novel probiotic intellectual property and commenced the development of Biome-owned probiotic strains. This ensures a pipeline for future product development and potential competitive advantages.
- With a cash balance of $2.87 million and positive cash flow in the last three-quarters of FY2024, Biome has the resources to fund future growth initiatives.
- The $2.7 million in unrecognised future income tax benefits provides a financial cushion for future profitability.
- Activated Probiotics is described as Australia’s highest-growth complementary medicine brand, suggesting a strong market position upon which to build.
Biome’s Activated Probiotics brand performed well, especially in the community pharmacy channel, where same-store sales grew by 75%. The company maintained positive cash flow in Q2, Q3, and Q4, ending the year with a cash balance of $2.87 million. Biome also has $2.7 million in unrecognised future income tax benefits, which could offset tax payments on future profits.
Biome plans to reinvest its cash reserves to support ongoing growth, focusing on brand development, product innovations, and expansion into new markets and channels. The company is set to release its “Vision 27” three-year strategic plan, which is expected to guide its future growth. Biome’s Managing Director, Blair Vega Norfolk, expressed pride in the team’s achievements and optimism for continued strong growth in FY2025.
