Aroa Biosurgery Posts First Positive Cash Flow Since ASX Listing, Eyes Strong FY25 Growth
Aroa Biosurgery has reported its first quarter of positive operating cash flow since listing on the ASX in 2020, alongside robust revenue growth projections and new regulatory approvals across key international markets.
- First positive operating cash flow of NZ$1.2 million since ASX listing
- Strong cash balance of NZ$21.9 million and debt-free status
- FY25 revenue guidance raised to NZ$81-84 million, up 17-22% on FY24
- Peer-reviewed study confirms efficacy of Myriad products in complex limb salvage
- Regulatory approvals secured in Lebanon, Vietnam, and Saudi Arabia
Financial Milestone Achieved
Aroa Biosurgery Limited (ASX: ARX) has marked a significant financial milestone by reporting its first quarter of positive cash flow from operations since its ASX debut in July 2020. The company generated NZ$1.2 million in operating cash flow during the December 2024 quarter, driven by strong customer receipts totaling NZ$19.5 million and reduced clinical expenses.
This positive cash flow is complemented by a solid cash position, with total cash on hand increasing to NZ$21.9 million. Notably, Aroa remains debt-free, underscoring its improving financial health as it advances towards profitability.
Upgraded FY25 Revenue and Profit Guidance
Reflecting confidence in its growth trajectory, Aroa has updated its full-year FY25 guidance. On a reported basis, the company expects total revenue between NZ$81 million and NZ$84 million, representing a 17-22% increase over FY24. Normalised EBITDA profit is forecasted at NZ$2-4 million, signaling a potential transition to sustained profitability by the end of the fiscal year.
The guidance incorporates a favourable NZ$/US$ exchange rate assumption of 0.60, which enhances reported financial outcomes compared to constant currency projections.
Clinical Validation Strengthens Market Position
Aroa’s clinical pipeline continues to gain momentum with the publication of the first peer-reviewed study from its larger MASTRR registry. The study, appearing in the respected journal Plastic and Reconstructive Surgery - Global Open, evaluated the performance of Aroa’s Myriad Matrix™ and Myriad Morcells™ in complex limb salvage procedures.
Results demonstrated effective tissue fill and coverage within 30 days following a single application, with no reported complications or infections. This real-world evidence not only validates the efficacy of Aroa’s extracellular matrix (ECM) products but also highlights their cost-effectiveness compared to other dermal substitutes.
Expanding Global Footprint and Sales Momentum
On the commercial front, Aroa’s direct sales now constitute 56% of its year-to-date sales mix, with the high-margin Myriad product family growing strongly, up 46% year-on-year. The company has also expanded its regulatory approvals, securing market access for Endoform™ and Myriad Matrix in Lebanon, Endoform in Vietnam, and Myriad in Saudi Arabia.
These approvals, coupled with active participation in major industry conferences, position Aroa well to capitalize on growing demand in both established and emerging markets.
Looking Ahead
CEO Brian Ward expressed optimism about the company’s trajectory, emphasizing the significance of achieving positive operating cash flow and anticipating continued momentum through FY25. With a robust balance sheet, validated clinical data, and expanding market access, Aroa Biosurgery appears poised to unlock further value for shareholders as it progresses towards sustainable profitability.
Bottom Line?
Aroa’s first positive cash flow since listing signals a turning point, but sustaining growth amid global market dynamics will be key.
Questions in the middle?
- How will Aroa sustain and accelerate sales growth of its Myriad product line in competitive markets?
- What impact will the new regulatory approvals have on revenue diversification and geographic expansion?
- Can Aroa maintain positive operating cash flow and achieve its EBITDA profitability targets through FY25?
