December 2022 Quarterly Results

Aroa Biosurgery Limited (ASX: ARX, ‘AROA’ or the ‘Company’) is pleased to provide an update on its activities for the quarter ended 31 December 2022.

Highlights are listed below. To read the full announcement, click here

Financial Highlights

  • Strong cash receipts from customers of NZ$17.1 million during the quarter.
  • Net cash inflow from operations of NZ$0.2 million for the quarter.
  • Net cash outflow from investing activities was NZ$2.0 million for the quarter, reflecting AROA’s investment into additional manufacturing plant & equipment capacity.
  • AROA ended the quarter with a strong cash balance of NZ$48.3 million as at 31 December 2022.
  • FY23 product revenue guidance maintained at NZ$60-62 million1 (up 36-41% on a constant currency basis2 on FY22).
  • FY23 total revenue guidance maintained at NZ$62-64 million1 (up 39-43% on FY22 on a constant currency basis).
  • FY23 product gross margin guidance maintained at 84%.1.
  • FY23 normalised EBITDA expected to be approximately breakeven.1

 Operational Highlights

  • Focus on building the US Sales team continues, with 5 new hires during the quarter and 123 active Myriad™ accounts.
  • A peer reviewed study published in February 2023 indicates that AROA’s Endoform™ Natural – High Flow is compatible with Negative Pressure Wound Therapy3
  • In November, AROA submitted an application for regulatory clearance for the first product in the Enivo™ range to the US Food & Drug Administration.
  • 48 new patients were enrolled in the Myriad MASTRR study during the quarter.
  • In January 2023, AROA was awarded a contract with leading Canadian group purchasing organisation, HealthPRO.  The contract will provide HealthPRO’s over 1,300 members with access to Endoform™ Natural and Endoform™ Antimicrobial from 1 June 2023.   
  • Received regulatory approval for Myriad Matrix™ in Brazil in December.
  • No damage to AROA facilities as a result of the recent severe rainfall and flash flooding in Auckland, New Zealand.
  • Presented at The Jarden Future Leaders Conference, The Great Wilsons Drug and Device Conference and also conducted a New Zealand roadshow.

[1] Given the dynamic and evolving impact of COVID-19, 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 revenue guidance of US$42-45 million in CY22.  It also assumes an average exchange rate of US$0.62/NZ$1.00.

[2] 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.

[3] Veale RWF, Kollmetz T, Taghavi N, Duston-Fursman CG, Beeson MT, Asefi D, Chittock HD, Vikranth AS, Dowling SG, Dempsey SG, Rose HJ, Mason ITT, May BCH. Influence of advanced wound matrices on observed vacuum pressure during simulated negative pressure wound therapy. J Mech Behav Biomed Mater. 2023 Feb;138:105620.