Microbiome health company Biome Australia [ASX:BIO] has announced it has surpassed its FY23 full-year sales revenue forecast by $7 million.
As of Thursday afternoon, shares are trading at $0.079 per share — up by 16.18%.
This is with half a month of trading in the remaining financial year.
It has been a tough 12 months for the microbiome health company, with shares down by 28.42% this past year along with much of the sector.
Here’s why I think today’s move in BIO is worth your time.
Source: TradingView
Key takeaways
- Today’s news of smashing sales targets puts BIO ahead of the curve in consumer defensive microcaps.
- As of the end of FY22, sales were up by 78% from 2021.
- Market Cap of approximately $12 million
- Gross margin saw a plus 7% growth to 58% FY22.
Biome Australia has seen revenue growth continue to accelerate — driven by their Activated Probiotics range.
Biome Australia was founded in 2018 by Managing Director Blair Norfolk, who remarked on the news:
‘…we’re pleased to share this trading update. Reaching our $7 million target is a great achievement building on $4.12 million in FY22 and 2.23 in FY21
‘With our deep understanding of our products and distribution channels, we look forward to strong growth in FY24’
These sales were helped by a distribution agreement penned on 31 August 2022 with Australian Pharmaceutical Industries [ASX:API].
With this deal, BIO expanded its distribution to Priceline pharmacies — bringing its total distribution to approximately 3,000 points throughout Australia.
Biome Australia also holds distribution points within the UK and NZ, although those markets are relatively underdeveloped.
This deal lined up with Priceline’s inaugural ‘Health Masterclass’ education series on 20 June 2022.
This has helped drive an already growing interest by consumers for more scientifically backed gut health products.
Google searches for ‘microbiome’ rose by 267% between 2014 and 2019 worldwide.
The global probiotics market is projected to grow to US$69 billion at a CAGR of 7% through 2023.
Source: Grand View Research
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Regards,
Charlie Ormond,
For Money Morning
