Latest news with #AroaBiosurgery
The Australian
29-07-2025
- Business
- The Australian
Aroa has third straight positive cash flow quarter
Special Report: New Zealand soft tissue repair company Aroa Biosurgery has recorded its third consecutive quarter of positive net cash flow since listing on the ASX in July 2020 and reaffirmed its FY26 revenue guidance. Aroa reports third consecutive quarter of positive net cash flow since listing in 2020 Cash receipts from customers of NZ$22.5 million, in line with expectations FY26 guidance reaffirmed with total revenue of NZ$92–100 million and normalised EBITDA of NZ$5–8 million Cash flow from operations for the June quarter for Aroa Biosurgery (ASX:ARX) was NZ$1.7 million, supported by strong cash receipts of $22.5m during the quarter. Net cash outflows from investing activities for the quarter were NZ$900,000, primarily reflecting routine capital expenditure. Net cash flow was NZ$500,000 with total cash on hand increasing by NZ$200,000, after adjusting for the impact of movements in exchange rates and the company ended the quarter with a cash balance of NZ$22.2m. Aroa remains debt-free with NZ$180,000 paid in directors fees during the quarter to its six non-executive directors. And in further good news for the company, Aroa reaffirmed full-year FY26 total revenue guidance of NZ$92–100m, representing growth of 10–20% on FY25 on a constant currency basis. Normalised EBITDA for FY26 of NZ$5–8m represents growth of 19–90% on FY25. Sustained growth for high-margin Myriad Sales of Aroa's high-margin Myriad family, which can be used in a wide range of surgical procedures where tissue needs to be rebuilt, saw sustained growth during the quarter consistent with expectations. Orders for its Ovitex products by Aroa's US partner, Nasdaq-listed TelaBio, are also tracking well. Recently announced proposals from the Centers for Medicare & Medicaid Services (CMS) may also present positive opportunities for Aroa's Symphony product, enabling reimbursement when used in physician offices from 2026. Attendance at major conferences and growing clinical evidence During Q1 FY26 Aroa's sales and clinical teams participated in eight major industry conferences. Aroa attended the Symposium on Advanced Wound Care (SAWC) Spring 2025 Conference in Texas, which was attended by more than 2,500 healthcare professionals. At the conference, four poster presentations describing the benefits and efficacy of Aroa ECM technology were delivered. Aroa also continues building evidence demonstrating the efficacy and value of its extracellular matrix (ECM) technology. During the quarter, two new peer-reviewed studies were published, including a large real-world study published in April in the industry-leading journal, International Wound Journal. The study assessed the efficacy of Aroa's Endoform product in treating venous leg ulcers (VLUs) compared to a leading reconstituted collagen dressing. The study found that VLUs treated with Endoform Natural could heal up to 8 weeks faster than the comparator group. Furthermore, the chances of the wound healing were significantly improved when Endoform Natural was used as part of treatment. This article was developed in collaboration with Aroa Biosurgery, a Stockhead advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
News.com.au
24-07-2025
- Business
- News.com.au
Innovation isn't enough – why Morgans says profitability drives ASX healthcare success
Morgans' Scott Power says path to profitability is key to a successful emerging ASX health care company While innovation is important, Power says the market loses interest in companies which don't turn a profit Wound care company Aroa Biosurgery delivered its first normalised profit in FY25 since listing in 2020 What makes a successful emerging ASX healthcare company and a smart investment? It's the question with no single answer but according to the experts there are certain factors investors should look for, including combining innovative science with strong commercial potential, a path to market and profitability. Morgans' senior healthcare analyst Scott Power has been covering the ASX sector for more than 27 years. He said success isn't just about innovation, but strong sales execution and market delivery. Successful players secure clinical validation, navigate regulatory hurdles efficiently and target real, unmet needs to help not only patients but deliver returns for investors. Indeed it is this path to profitability that Power sees as crucial overarching requirement for success. "You can develop a product and put a lot of R&D into it but ultimately it needs to get to market and be sold with profits being generated if you are going to grow as a listed company," Power told Stockhead. "Our pool of funding over here is not deep enough to keep funding the next idea compared with the US where capital markets are deeper and can fund R&D right through to commercialisation. "The market loses interest in companies which continue to produce losses." Power said that in what has been a tough market for the last several years for the ASX emerging healthcare sector, having a clear path to profitability was imperative. "In the last month I have seen a turnaround in level of interest and rotation back to the sector with share prices starting to move," he said. "The companies that are profitable or have a clear path to profitability are the ones being rewarded." Case in point… Aroa delivers maiden profit for FY25 New Zealand-based soft-tissue repair company Aroa Biosurgery (ASX:ARX) surged into the black in FY25, delivering its first profit since listing on the ASX in 2020. Operating under the Kiwi financial year, which ends on March 31, Aroa reported a normalised EBITDA profit of NZ$4.2 million for FY25 – a sharp turnaround from the NZ$3.1m loss recorded in FY24. Total revenue for FY25 of NZ$84.7m was an increase of 23% on the previous year and exceeded guidance of NZ$81-84m. "For them it's a balance between how much money they want to continue to invest in R&D and how quickly they want to grow EBITDA," Power said. "Given their revenue is growing at 20% and they're holding their R&D in absolute terms stable they're getting there and could get their faster by pulling back on the R&D but then it becomes a question of how innovative do they want to remain at expense of profitability? "It is a tough question to balance because on one hand you have a bigger pool of investors, which will look at you if you're profitable and another smaller pool looking for the innovation, so the next ProMedicus (ASX:PME), Cochlear (ASX:COH) or ResMed (ASX:RMD)." Strength in innovation While the point's been made here that a strong path to profitability is critical to sustained success, Power noted Aroa's great strength lies firstly in innovation. Its products are derived from ovine forestomach matrix (sheep rumen) sourced exclusively from New Zealand. The matrix is processed and sterilised to remove DNA and cells, leaving a tissue scaffold called the ECM for new tissue to grow, which contains a dense network of vascular channels – a structure like human skin – and more than 150 proteins critical to healing. Aroa has developed several products using its ECM technology including Endoform, Myriad and Symphony – each designed to support soft tissue repair across a range of surgical and wound care applications. "They have a lot of peer-reviewed scientific studies which have been published," Power said. "Aroa's scientific know-how is very high and they have continued to innovate with new product offerings, with a strong R&D team." The company has a hybrid approach to selling its products with a direct sales force for selling Endoform, Myriad and Symphony. Hernia repair and breast reconstruction product Ovitex is manufactured by Aroa on behalf of its Nasdaq-listed business partner TELA Bio. Does the product fill an unmet need? Morgans' healthcare analyst Iain Wilkie reckons filling an unmet medical need or shortfall in existing standard of care is also important to success for an emerging ASX healthcare company. "It either needs to be better than the existing standard of care or perform the same but be cheaper," he told Stockhead. "You would probably say the easiest path to market is if it is an improvement or filling an unmet medical need." Wilkie said a good example was EBR Systems (ASX:EBR), which in April gained US Food and Drug Administration (FDA) approval for its WiSE CRT System – the world's only wireless endocardial (placed within the heart) pacing system in clinical use for stimulating the heart's left ventricle. "EBR has just started selling its WiSE and it has a very clear case of targeting an unmet medical need and fixing a problem which exists and being the only device which can do it," Wilkie said. He noted Nanosonics (ASX:NAN) was also a good example of a healthcare company addressing an unmet need in the healthcare sector. Nanosonics has been a leader in infection prevention with its flagship Trophon system – an automated ultrasound probe cleaner that uses sonically-activated hydrogen peroxide mist. Trophon has become standard of care for cleaning ultrasound probers in several countries, including Australia. In March 2025, Nanosonics received FDA de novo clearance for Coris, the world's first automated system specifically designed to clean the internal channels of flexible endoscopes. "They've already got one product which has been selling well for almost two decades and now they're launching their new product," he said. At Stockhead, we tell it like it is. While Aroa Biosurgery and EBR Systems are Stockhead advertisers, the companies did not sponsor this article.
Yahoo
01-06-2025
- Business
- Yahoo
ASX Penny Stocks To Consider In June 2025
The Australian market is experiencing some turbulence, with futures indicating a slight decline for the ASX 200, largely influenced by ongoing international trade uncertainties. Despite these fluctuations, investors continue to seek opportunities in various sectors, including the often-overlooked realm of penny stocks. Although the term 'penny stocks' might seem outdated, these smaller or newer companies can offer unique opportunities for growth and value when supported by solid financials. Name Share Price Market Cap Financial Health Rating Lindsay Australia (ASX:LAU) A$0.71 A$225.19M ★★★★☆☆ CTI Logistics (ASX:CLX) A$1.85 A$149.01M ★★★★☆☆ Accent Group (ASX:AX1) A$1.90 A$1.14B ★★★★☆☆ EZZ Life Science Holdings (ASX:EZZ) A$1.565 A$73.83M ★★★★★★ IVE Group (ASX:IGL) A$2.55 A$393.16M ★★★★★☆ GTN (ASX:GTN) A$0.61 A$116.42M ★★★★★★ Bisalloy Steel Group (ASX:BIS) A$3.50 A$166.08M ★★★★★★ Regal Partners (ASX:RPL) A$2.33 A$783.26M ★★★★★★ Tasmea (ASX:TEA) A$2.99 A$699.78M ★★★★★☆ SHAPE Australia (ASX:SHA) A$3.29 A$272.21M ★★★★★★ Click here to see the full list of 1,000 stocks from our ASX Penny Stocks screener. Here we highlight a subset of our preferred stocks from the screener. Simply Wall St Financial Health Rating: ★★★★★☆ Overview: Aroa Biosurgery Limited develops, manufactures, and sells medical devices for wound and soft tissue repair using extracellular matrix technology in the United States and internationally, with a market cap of A$175.90 million. Operations: Revenue Segments: No specific revenue segments have been reported for Aroa Biosurgery Limited. Market Cap: A$175.9M Aroa Biosurgery has demonstrated notable progress, with sales reaching NZ$84.7 million for the year ending March 31, 2025, reflecting an increase from the previous year. Despite a net loss of NZ$3.81 million, this marks an improvement from prior losses. The company is debt-free and maintains a strong cash position with short-term assets surpassing liabilities significantly, ensuring a stable financial runway for over three years. Recent clinical evidence highlights the efficacy of its Endoform Natural product in treating venous leg ulcers more effectively than competitors, potentially enhancing patient outcomes and reducing costs in wound care management. Click to explore a detailed breakdown of our findings in Aroa Biosurgery's financial health report. Examine Aroa Biosurgery's earnings growth report to understand how analysts expect it to perform. Simply Wall St Financial Health Rating: ★★★★☆☆ Overview: Baby Bunting Group Limited operates as a retailer of maternity and baby goods in Australia and New Zealand, with a market cap of A$233.41 million. Operations: The company generates A$496.90 million in revenue from its specialty retail segment. Market Cap: A$233.41M Baby Bunting Group's financial position is mixed, with a market cap of A$233.41 million and revenue of A$496.90 million from its specialty retail segment. The company faces challenges, such as negative earnings growth over the past year and declining profit margins, currently at 1.2%. Despite these issues, Baby Bunting maintains a satisfactory net debt to equity ratio of 8.6%, with debt well covered by operating cash flow at 177.9%. However, short-term assets do not cover long-term liabilities (A$132 million), and interest coverage by EBIT is low at 2.2x, indicating potential financial strain ahead. Jump into the full analysis health report here for a deeper understanding of Baby Bunting Group. Explore Baby Bunting Group's analyst forecasts in our growth report. Simply Wall St Financial Health Rating: ★★★★☆☆ Overview: COSOL Limited, along with its subsidiaries, offers information technology services across the Asia Pacific, North America, Europe, the Middle East, Africa, and globally with a market cap of A$142.86 million. Operations: The company generates revenue primarily from its Asia Pacific operations, contributing A$98.75 million, and North American activities, adding A$12.26 million. Market Cap: A$142.86M COSOL Limited, with a market cap of A$142.86 million, demonstrates mixed financial health. Trading at a value price-to-earnings ratio of 16x and offering high-quality earnings, it presents potential value compared to peers. However, its short-term assets (A$32.3M) do not cover long-term liabilities (A$40.7M), and net profit margins have declined from 9.5% to 8.1%. The company's debt is well covered by operating cash flow at 25%, but the dividend yield of 3.04% isn't supported by free cash flows. Recent inclusion in the S&P/ASX All Ordinaries Index highlights its growing recognition in the market. Get an in-depth perspective on COSOL's performance by reading our balance sheet health report here. Gain insights into COSOL's future direction by reviewing our growth report. Reveal the 1,000 hidden gems among our ASX Penny Stocks screener with a single click here. Ready For A Different Approach? Trump's oil boom is here — pipelines are primed to profit. Discover the 22 US stocks riding the wave. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ASX:ARX ASX:BBN and ASX:COS. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Australian
30-05-2025
- Business
- The Australian
Long Shortz: Aroa Biosurgery
Tylah Tully chats with Aroa Biosurgery (ASX:ARX) founder and CEO Brian Ward on the company's FY25 results, posting its first profit since listing on the ASX in 2020. The company had a strong year, reporting total revenue of NZ$84.7 million, 23% growth on FY24. In particular, Myriad™ notched just over NZ$32 million in product revenue, 38% growth on the previous financial year. Watch the video to hear Ward's insights. This video was developed in collaboration with Aroa Biosurgery, a Stockhead client at the time of publishing. The interviews and discussions in this video are opinions only and not financial or investment advice. Viewers should obtain independent advice based on their own circumstances before making any financial decisions.
Yahoo
30-05-2025
- Business
- Yahoo
Aroa Biosurgery Full Year 2025 Earnings: Revenues Beat Expectations, EPS Lags
Revenue: NZ$84.7m (up 23% from FY 2024). Net loss: NZ$3.81m (loss narrowed by 64% from FY 2024). NZ$0.011 loss per share (improved from NZ$0.031 loss in FY 2024). This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) missed analyst estimates by 76%. Looking ahead, revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 8.6% growth forecast for the Biotechs industry in Australia. Performance of the Australian Biotechs industry. The company's shares are up 13% from a week ago. Just as investors must consider earnings, it is also important to take into account the strength of a company's balance sheet. We have a graphic representation of Aroa Biosurgery's balance sheet and an in-depth analysis of the company's financial position. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información
