AROA is pleased to release its audited full year results for the period ended 31 March 2023.
Highlights are listed below.
To read the full announcement, click here
HIGHLIGHTS
FY23 Results
- All audited FY23 full year results within guidance.
- Audited full year product revenue of NZ$60.5 million, reflecting a 55% increase on FY22 (38% on a constant currency[1] basis). Total revenue (inclusive of project and license fees) was NZ$63.4 million, representing 60% growth on FY22.
- Full year Myriad™ product revenue of NZ$13.5 million, reflecting an increase of 268% on FY22 (236% on a constant currency basis).
- Product gross margin of 84%, representing an 8% increase on FY22 (5% increase on a constant currency basis).
- Normalised[2] EBITDA profit for FY23 of NZ$1.5 million, compared to a NZ$1.5 million loss in FY22. Normalised loss before income tax was NZ$0.9 million (NZ GAAP Loss before income tax of NZ$0.4 million) compared to loss of NZ$5.6 million in FY22 (NZ GAAP Loss before income tax of NZ$8.3 million).
- Strong cash balance of NZ$44.7 million with no debt.
FY24 Outlook
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Product revenue guidance of NZ$72-75 million (delivering 25-30% constant currency growth on FY23) and total revenue of NZ$73-76 million. Guidance assumes an average NZD/USD exchange rate of 0.65, compared to the average rate of 0.62 in FY23. Myriad and Symphony™ are expected to be the primary drivers of AROA’s product revenue growth. TELA Bio, Inc. has forecasted 45%-57% CY23 revenue growth and is expected to consume high safety stock levels during H1.[3] This may temper FY24 demand.
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Product gross margins are expected to improve to 85%, reflecting growth in the sales mix of the higher margin Myriad and Symphony products despite assumed currency headwinds.
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AROA is continuing to invest in its US sales operations and product development to drive medium term growth. Normalised EBITDA profit expected to be maintained at NZ$1–2 million and targeting increasing profitability beyond FY24.
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Guidance is subject to no material decline in US medical procedure numbers or sustained disruption to AROA’s manufacturing or transportation activities and TELA Bio, Inc. delivering on its CY23 revenue guidance.[3]
[1] Constant currency removes the impact of exchange rate movements. This approach is used to assess the AROA group’s (‘Group’) underlying comparative financial performance without any distortion from changes in foreign exchange rates, specifically the USD. The exchange rate of US$0.62/NZ$1.00 has been used in the constant currency analysis. All references in this announcement to ‘constant currency’ or ‘CC’ are as set out in this footnote.
[2] Normalised EBITDA is non-conforming financial information, as defined by the NZ Financial Markets Authority, and has been provided to assist users of financial information to better understand and assess the Group’s comparative financial performance without any distortion from the one-off transactions. The impact of non-cash share-based payments expense and unrealised foreign currency gains or losses has also been removed from the Profit or Loss. This approach is used by Management and the Board to assess the Group’s comparative financial performance. All references to normalized EBITDA in this announcement are as set out in this footnote.
[3] Refer to TELA Bio, Inc.’s news release dated 11 May 2023.
