BIOME AUSTRALIA LIMITED For personal use only
ASX ANNOUNCEMENT
26 July 2022
Quarterly Activity Report Q4 FY22
- Sales growth accelerated in Q4 with sales of $1.39m, up 50.3%
- Annualised sales of $5.56m based on Q4
- Quarterly cash receipts $1.37m, up 92%
- Maintained strong gross margins of 58%
- Cash balance of $5.5 million as of 30 June 2022
- Material distribution agreement signed with Priceline Pharmacy Group
Microbiome health company Biome Australia Limited (ASX: BIO) ('Biome' or 'the company') is pleased to provide its Appendix 4C and activity report for the quarter ended 30 June 2022.
Sales Revenue
Sales growth accelerated in Q4 FY22, driven by Biome's Activated Probiotics® in both pharmacy and independent practitioner sales channels. Biome recorded increased net sales to $1.39 million, up 50.3% on the previous quarter. The Q4 result represents an annualised sales run rate of $5.56 million.
Biome successfully maintained its strong gross margin at 58%, amidst increasing raw material cost and global logistics challenges.
A key driver of the June quarter sales growth was the expansion of the Activated Probiotics® product range. Biome launched Biome Baby™ Probiotic in late May 2022 following the launch of Biome Acne™ in late March 2022. These 2 new products, together with 3 other probiotic products launched since IPO in November 2021 (Biome Her™, Biome Eczema™ and Biome Advanced™ 10 pack) accounted for 22% of June quarter sales.
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Distribution network
During the quarter Biome secured a material distribution agreement with Priceline Pharmacy Group, for distribution of its Activated Probiotics® range. This agreement expands the Company's distribution by 370 high volume service-focused pharmacies, taking the distribution footprint to circa 3,000 outlets. The agreement also strengthens Biome's existing relationship with Wesfarmers owned Australian Pharmaceutical Industries (API). Biome expects the initial allocation of the Activated Probiotics® products into Priceline Pharmacies around Australia in July 2022.
Biome Australia's Managing Director and Founder, Blair Norfolk commented: "I am pleased to report that FY22 was a strong year for Biome and its fagship brand, Activated Probiotics. Biome closed the year with a record quarter sales of $1.39m, unaudited, and another notable year of growth for the company - up 78% on FY21. I am thrilled to see the development of sales and the number of our probiotic products getting into the hands of Australians every day through both community pharmacy and independent health practitioners. Biome's products have the potential to make a meaningful difference in the quality of life of patients. The feedback and testimonials that we continue to receive from Biome's health practitioner partners is inspiring. As we begin FY23 we will commence our new partnership with Priceline Pharmacy, adding 370 high volume pharmacies to our national distribution network and ability to reach more patients around Australia."
Company Financial and Corporate Overview
Cash at the end of the quarter was $5.5 million (31 March 2022: $6.6 million).
In Q4 the Company received $1,367,726 (previous quarter $711,104) in cash receipts from customers.
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Net cash outfow from operating activities for the quarter was $1.0 million (previous quarter net cash outfow of $1.11 million). Business activities expenditure totalled $2.37 million for the June quarter (an increase of 30% from the previous quarter of $1.82 million), consisting of advertising and marketing of $370,000 (previous quarter $204,000), operating costs of $1,064,000 (previous quarter $789,000) and research and development of $58,000 (previous quarter $51,000) with the balance of operating outfows being administration, staff costs and FBT totalling $898,000 (previous quarter $775,000). The Company received $14,000 in Export Market Development Grants (EMDG) during the June quarter.
The table below illustrates the expenditure comparison against the Company's 'Use of proceeds table' in the Prospectus dated 19 October 2021:
Use of proceeds | Amounted budgeted in | Actual amount spent |
Prospectus | to date | |
Inventory | $2.4 million | $0.5 million |
Sales & Marketing | $2.15 million | $0.62 million |
New Product Development | $0.5 million | $0.12 million |
Administrative & Working | $1.95 million | $0.19 million |
Capital | ||
Costs of the Offer | $1 million | $1.07 million |
Total | $8 million | $2.5 million |
Table 1: Use of funds
The Company notes that in the June 2022 quarter, the Company paid $120k to Directors of the Company in fees, salaries and superannuation.
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Appendix 4C
Quarterly cash flow report for entities
subject to Listing Rule 4.7B
Name of entity
BIOME AUSTRALIA LIMITED (BIO)
ABN | Quarter ended ("current quarter") |
51 627 364 014 | JUNE 2022 |
Consolidated statement of cash flows | Current quarter $A'000 | Year to date |
(....12...months) | ||
$A'000 |
1. Cash flows from operating activities
1.1 | Receipts from customers | 1,368 | 4,028 |
1.2 Payments for
(a) | research and development | (58) | (162) | |
(b) | product manufacturing and operating | (1,064) | (3,367) | |
costs | ||||
(c) | advertising and marketing | (370) | (1,047) | |
(d) | leased assets | - | ||
(e) | staff costs | (678) | (2,461) | |
(f) | administration and corporate costs | (216) | (705) | |
1.3 | Dividends received (see note 3) | - | - | |
1.4 | Interest received | 1 | 2 | |
1.5 | Interest and other costs of finance paid | - | (24) | |
1.6 | Income taxes & FBT paid | (4) | (8) | |
1.7 | Government grants and tax incentives | 14 | 270 | |
1.8 | Other (provide details if material) | - | - | |
1.9 | Net cash from / (used in) operating activities | (1,007) | (3,474) |
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2.Cash flows from investing activities
2.1 Payments to acquire or for:
(a) | entities | - | - |
(b) | businesses | - | - |
(c) | property, plant and equipment | - | - |
(d) | investments | - | - |
(e) | intellectual property | - | - |
(f) | other non-current assets | (109) | (128) |
(*leasehold improvements) |
2.2 Proceeds from disposal of:
- entities
(b) | businesses | - | - | |
(c) | property, plant and equipment | - | 32 | |
(d) | investments | - | - | |
(e) | intellectual property | - | - | |
(f) | other non-current assets | - | - | |
2.3 | Cash flows from loans to other entities | - | - | |
2.4 | Dividends received (see note 3) | - | - | |
2.5 | Other (**bank guarantee) | - | (30) | |
2.6 | Net cash from / (used in) investing | (109) | (126) | |
activities |
Cash flows from financing activities
3.
3.1 Proceeds from issues of equity securities
(excluding convertible debt securities) | - | 9,797 | |
3.2 | Proceeds from issue of convertible debt | - | - |
securities | |||
3.3 | Proceeds from exercise of options | - | - |
3.4 | Transaction costs related to issues of equity | - | (1,236) |
securities or convertible debt securities | |||
3.5 | Proceeds from borrowings | - | 170 |
3.6 | Repayment of borrowings | - | (242) |
3.7 | Transaction costs related to loans and | - | (1) |
borrowings | |||
3.8 | Dividends paid | - | - |
3.9 | Other (provide details if material) | - | - |
3.10 | Net cash from / (used in) financing | 0 | 8,488 |
activities |
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Biome Australia Ltd. published this content on 25 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 July 2022 22:58:03 UTC.
