March 2023 – Quarterly Results

Soft tissue regeneration company Aroa Biosurgery Limited (ASX: ARX) is pleased to announce financial results for the March 2023 Quarter. Highlights are listed below. To read the full announcement, click here.

Financial Highlights Q4 FY23

• Net cash flow outflow from operations was NZ$1.9 million for the quarter, primarily reflecting the timing of cash receipts for product sales during the quarter.
• Net cash outflow from investing activities was NZ$1.8 million for the quarter, reflecting further investment into additional manufacturing plant & equipment capacity.
• Strong cash balance of NZ$44.7 million as at 31 March 2023, and the Company remains debt free.

Financial Highlights FY23

• Preliminary unaudited FY23 full year revenues, product gross margin and normalised[1] EBITDA within guidance.
• Preliminary unaudited FY23 full year total revenue of approximately NZ$63.4 million, compared to $39.7m in FY22, representing growth of 60% (42% on a constant currency[2] basis).
• Preliminary unaudited FY23 full year product revenue of approximately NZ$60.5 million, compared to $39.2 million in FY23, representing growth of 55% (38% on a constant currency basis).
• Preliminary unaudited FY23 full year Myriad™ product revenue grew 233% on FY22 (on a constant currency basis) to approximately NZ$13.6 million.
• Preliminary unaudited FY23 full year product gross margin of 84% (84% on a constant currency basis), representing an 8% increase on FY22.
• Preliminary unaudited FY23 full year normalised EBITDA positive, despite the large investment in ENIVO in FY23.

Operational Highlights

• Continued focus on US sales expansion, with 166 Myriad active[3] accounts at the end of Q4 FY23 and 10 sales representatives at a current average run rate of over US$500,000 per annum.
• AROA was awarded a contract with leading US group purchasing organisation, Premier Inc. The contract provides approximately 4,400 US hospitals and healthcare systems access to Endoform™, Myriad and Symphony™ products.
• 26 new patients were enrolled in the Myriad MASTRR study during the quarter, with a total of 156 patients enrolled.
• On April 7, the Company received US FDA 510K clearance for its Enivo™ pump and catheter, key components of the Enivo Tissue Apposition Platform.

[1] 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 AROA group’s (the ‘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.
[1] Constant currency 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 exchange rate of US$0.62/NZ$1.00 has been used in the constant currency analysis, representing Group’s average US$/NZ$ exchange rate for H1 FY23. All references in this announcement to ‘constant currency’ are as set out in this footnote.
[1] Represents accounts to which sales were made in the applicable quarter.