Biome Australia (BIO) H1 2025 earnings summary

Executive summary

• Achieved first net profit in H1 FY2025: AUD 100,000 (excluding R&D rebate) and up to $433,395 (including R&D rebate), reversing a prior year loss of $1.525m.

• H1 FY2025 sales revenue reached just under AUD 8.9 million ($8.86m), up 47% year-over-year; FY24 sales were $13.01m, an 80% increase year-over-year.

• Expanded Australian distribution to over 6,000 points, covering about 50% of the addressable market, with international expansion in the UK, Ireland, EU, and Canada.

• Maintained number one growth spot in the vitamins and practitioner-only pharmacy category for over four years.

• Two consecutive quarters of positive EBITDA, with EBITDA for 1H FY25 at $351,765 (adjusted for non-cash, share-based payments).

Financial highlights

• Gross margin improved to 61% for H1 FY2025 and FY24, up from low 50% pre-IPO.

• EBITDA positive for four consecutive quarters, with sequential growth from Q1 to Q2 FY25.

• Cash balance stood at $2.6m as of December 31, 2024.

• Net assets increased to $4.53m from $2.90m at 30 June 2024.

• Inventory levels optimized at AUD 2.5–3 million, supporting higher stock turns and growth.

Outlook and guidance

• Vision 27 targets cumulative revenue of AUD 75–85 million ($75m–$85m) for FY25–FY27, a 350% increase over the previous three years.

• Tracking ahead of schedule on distribution and sales, with a historical CAGR over 70% for the last three years.

• Plans to expand Australian distribution from 6,000 to 8,000 points and increase international market penetration, especially in Europe and North America.

• New product launches and proprietary probiotic strain development expected to drive future growth, including Activated Therapeutics in late FY2025.

• Directors believe there are reasonable grounds for the company to pay its debts as they become due.