Aroa Biosurgery Limited (ASX: ARX, ‘AROA’ or the ‘Company’) is pleased to provide an update on its activities for the quarter ended 30 September 2024.
Highlights are listed below, to read the full announcement, click here
FINANCIAL HIGHLIGHTS
- Strong cash receipts from customers of NZ$19.9 million during the quarter, reflecting a ~35% increase on a pcp[1] basis and a ~12% quarter-on-quarter increase.
- In line with expectations, net cash outflow from operations reduced by ~ NZ$2.4 million compared to the prior quarter, to NZ$1.2 million for the quarter. The Company expects to be operating cash flow positive in H2 FY25.
- Net cash outflow from investing activities was NZ$0.6 million for the quarter, primarily reflecting routine capital expenditure.
- ~58% decrease in quarterly cash burn to ~ NZ$2.2 million and ending the quarter with a strong cash balance of NZ$21.6 million.
- FY25 revenue guidance[2] maintained at NZ$80-87 million (21-32% constant currency[3] growth on FY24).
- FY25 normalised[4] EBITDA profit guidance2 maintained at NZ$2-6 million.
- H1 FY25 results to be released on Tuesday 26 November 2024.
OPERATIONAL HIGHLIGHTS
- Momentum behind AROA’s US commercial operations continues to build, with productivity gains seen across the whole sales organisation and 5% quarter-on-quarter growth in active Myriad™ accounts.
- Regulatory approval received for Endoform™ and Myriad Matrix™ in Argentina, and Endoform in Egypt.
- Four peer-reviewed studies published during the quarter, including the largest published comparative assessment of commercially available Extracellular Matrix (ECM) based medical devices.
- Active investor relations schedule during the quarter, with presentations at the 18th Bioshares Biotech Summit and the ASX Small & Micro-caps Conferences.
- Successful completion of annual DEKRA audit at the Company’s Auckland manufacturing sites.
[1] Prior comparable period, being the same period in 2023.
[2] Assumes an average NZ$/US$ rate of 0.64 and is subject to TELA Bio, Inc. (TELA Bio) delivering on its CY24 guidance of US$74.5-76.5 million (representing 27-31% growth on CY23).
[3] Constant currency removes the impact of exchange rate movements. This approach is used to assess the AROA group’s (Group) underlying comparative financial performance without any distortion from changes in foreign exchange rates, specifically the US$. All references in this announcement to ‘constant currency’ or ‘CC’ are as set out in this footnote.
[4] Normalised revenue and 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 payment expenses 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 normalised EBITDA in this announcement are as set out in this footnote.
