Biome Australia Limited – 2025 Half Year Results Summary
Website: Biome Australia
Overall Tone
Biome Australia Limited reported a strong half-year performance, achieving maiden net profitability and continued revenue growth. The company recorded two consecutive quarters of positive EBITDA, driven by robust sales in its Activated Probiotics range. With a solid financial position and expanding international presence, Biome is well-positioned for future growth.
Financial Results Summary
| Metric | Dec-24 | Dec-23 | YoY Change |
|---|---|---|---|
| Revenue | $8.86M | $6.02M | +47.4% |
| Statutory Net Profit After Tax | $433K | -$1.53M | +128.4% |
| Gross Margin | 61.0% | 60.2% | +0.8pp |
| Operating Cash Outflow | -$1.12M | -$654K | -71% |
| Net Tangible Assets Per Share | 2.00c | 1.01c | +98% |
Positive Surprises & Potential Concerns
- Positive: Strong revenue growth (+47.4% YoY) driven by Activated Probiotics and international expansion.
- Positive: First-ever net profit, reflecting improved cost control and stronger gross margins.
- Concern: Operating cash outflows, mainly due to bonus and long-term incentive (LTI) payments.
- Concern: Inventory levels increased, potentially reflecting higher stock requirements for growth or a slowdown in demand.
Outlook Commentary
- Continued growth expected, with expansion into Canada, UK, Ireland, and New Zealand showing early promise.
- Ongoing investment in distribution footprint, with Australian points of sale increasing from 5,000 to 6,000.
- Further margin expansion anticipated as economies of scale improve and operational efficiencies are realized.
Guidance Statements
- Revenue Growth: Expected to maintain strong double-digit growth in upcoming periods.
- Profitability: Focus on sustained positive EBITDA and net profit, while reinvesting in international expansion.
- Cash Flow Management: Aiming to reduce operating cash outflows, ensuring financial sustainability.
Result vs. Market Expectations
- Revenue growth exceeded expectations, reflecting strong demand and effective distribution expansion.
- Profitability milestone surpassed estimates, highlighting the effectiveness of cost controls and operational efficiencies.
- No dividends declared, in line with expectations as the company prioritizes reinvestment for growth.
Market Positioning
- Share price performance leading into results was stable, reflecting confidence in Biome’s growth trajectory.
- Trading near 52-week highs, supported by strong financial results and expanding market reach.
- Positioned as a high-growth health and wellness company, with a differentiated product offering and increasing global presence.
Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.