Today Aroa Biosurgery (AROA, the Company) is pleased to announce financial results for H1 FY23. With fewer COVID-19 related disruptions, the Company has entered FY23 with momentum and delivered strong financial results.
Aroa reports a strong cash balance of NZ$50.1 million as at 30 September 2022, and is debt free.
Upgraded guidance of NZ$62-64 million. , previously advised on 26 October has been maintained, and normalised EBITDA (unaudited) was positive.
Overall Product sales for H1 FY23 were up 44% to NZ$28.8 million compared to H1 FY22 (NZ$20.1 million), and up 20% compared to H2 FY22 (NZ$24.0 million), on a constant currency basis.
Product sales of Myriad™ made a significant contribution, with revenue for the product line growing by 242% on H1 FY22 and 147% on H2 FY22 (on a constant currency basis) to NZ$5.6m million.
An increase in product gross margin of 5% on H2 FY22 at 84%, on a constant currency basis, was also seen.
Managing Director and CEO Brian Ward said: “Overall, the business has produced a strong result, and with approximately NZ$50 million in cash, we are poised to enter H2 FY23 with confidence.
It’s excellent to see such strong results across the Myriad™ portfolio, and as our sales force matures and product portfolio broadens, we expect to see momentum build even further.”
The collective effort of the team at AROA over the last six months has enabled us to deliver excellent performance in a complex, rapidly changing environment.”
Read the full announcement here
 Given the dynamic and evolving impact of COVID-19, all forward-looking statements in relation to FY23 performance are subject to there being 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 revenue guidance of US$42-45 million in CY22. It assumes an average exchange rate of US$0.62/NZ$1.00.
 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 AROA Group’s (“Group”) comparative financial performance without any distortion from NZ GAAP accounting treatment specific to one-off fair value adjustments, one-off transaction costs associated with capital raisings. The impact of non-cash share-based payments expense 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 in this announcement to ‘normalised EBITDA’ are as set out in this footnote.
 Constant currency (‘CC’) removes the impact of exchange rate movements. This approach is used to assess the AROA Group’s underlying comparative financial performance without any distortion from changes in foreign exchange rates, specifically the USD. The USD/NZD exchange rate of US$0.62/NZ$1.00 has been used in the constant currency analysis, representing approximately the average rate for H1 FY23 and the rate for FY23 financial guidance. All references in this announcement to ‘constant currency’ are as set out in this footnote.