With probiotics becoming a staple in people’s diets, microbiome health company Biome Australia (ASX: BIO) is enjoying its time in the spotlight. The Company reported sales revenue of $1.56 million in the September quarter of FY23, up 70% on the previous corresponding period.
From $833k in 2020 to $4.1 million in FY22, the Company’s revenue growth has been consistent and positive. In the upcoming year, Biome expects this boom to keep up, forecasting sales revenue to grow to $7 million in FY23.
Biome Australia’s Managing Director and Founder, Blair Norfolk, commented, “I am delighted to share Biome Australia’s sales revenue of $1.56 million for the first quarter of FY23 and growth of 70% versus the PCP, representing our best quarter to date. The Board is pleased to share a full year forecast of $7 million for FY23, as we expect further strong quarters ahead. Biome’s distribution footprint has achieved sufficient scale to continue rapid growth for the coming years.”
Probiotics are known for their perks to gut health and immunity. When Biome was consumed by people experiencing irritable bowel syndrome, iron malabsorption, mental health concerns and skin conditions, health professionals reported overwhelmingly positive feedback, thus further making a case for the Company.
Launched in 2018, Biome works with microbiome research and development organisations to produce several unique live biotherapeutic (probiotic) products with innovative delivery technologies that improve their stability and efficacy to create Activated Probiotics.
Biome already has more than 3,000 distribution points in Australia, with the sales of its flagship product, Activated Probiotics, taking centrestage. It is also sold in the UK and New Zealand, where sales have increased 50% since its IPO on November 30 last year. Seeing a positive response in these countries, Biome plans on taking its probiotic solutions to new markets in Europe, North America and Asia-Pacific.
FY22 was a profitable one for the Company, as its gross profit rose over 100% to $2.3 million in FY22, with sales increasing 78% to $4.12 million. $Their 4.5m net loss after tax however, was attributed to expenses linked to their IPO.
FY23 is expected to be even better though, without those financing expenses. To further guarantee success, Biome is giving due attention to its research and development arm. As of September 2022, Biome has successfully recruited more than 40 patients to its Biome Lift TM Probiotic clinical trial with La Trobe university. Researchers are investigating Biome Lift TM Probiotic for its ability to reduce the severity of symptoms in subthreshold depression vs placebo. It expects to reveal preliminary results from this trial in Q3 FY23.
Plus, the Company is also reimagining its distribution strategy. In May 2022, Biome signed an agreement with Australian-based Priceline Pharmacy to sell its products, thus securing a spot in Priceline’s 370 pharmacies across the country.
All things considered, the Company knows that if it continues to play its cards right, it could be sitting atop some sweet fortune from its probiotics range.
Alinda is a Business Reporter for The Sentiment
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