How Did Biome Australia Achieve Its First Profit with 41.6% Revenue Growth?
Biome Australia Limited reports its first profitable year since 2018, driven by a 41.6% revenue increase and significant international growth.
- First profitable year since inception in 2018
- Revenue up 41.6% to $18.4 million
- International revenue grows 69% with new distribution deals
- Activated Probiotics ranks #2 in community pharmacy probiotic sales
- Strong cash position supports growth without immediate capital needs
A Milestone Year for Biome Australia
Biome Australia Limited has announced its first profitable year since the company was founded in 2018, marking a significant turnaround in its financial performance. For the year ended 30 June 2025, the company posted a net profit of $214,656, reversing a loss of $1.67 million in the previous year. This milestone was achieved alongside a robust 41.6% increase in revenue, which reached $18.4 million, substantially outpacing the broader category growth rates by a factor of seven to ten.
Operational Strength and Market Leadership
Biome’s operational metrics underscore the company’s improving efficiency and market traction. The gross margin remained steady at 61%, and the company recorded its sixth consecutive quarter of positive EBITDA, totaling $931,050 for the full year. Notably, the Activated Probiotics brand secured the number two position in total probiotic revenue within community pharmacy channels domestically, with sell-through increasing by over 50%. This growth was achieved without resorting to discounting, highlighting strong consumer demand and brand positioning.
Expanding Horizons, International Growth
International sales surged by 69% to $1.5 million, supported by new distribution agreements across four key markets, Canada, Ireland, the United Kingdom, and New Zealand. Partnerships with major pharmacy groups such as Pure Pharmacy Group and Healthy Planet Group in Canada, Uniphar in Ireland, Planet Organic in the UK, and Propharma in New Zealand have opened thousands of additional retail points. This international footprint expansion is a critical pillar of Biome’s growth strategy.
Innovation and Intellectual Property
Biome also advanced its product development pipeline by launching the Activated Therapeutics range, a practitioner-only line targeting specific therapeutic areas. The company completed a proprietary strain development program, securing intellectual property ownership of Lactobacillus plantarum BMB18, now registered with the German culture bank DSMZ. This IP asset could generate future licensing revenue, adding a new dimension to Biome’s business model.
Financial Position and Outlook
Biome’s balance sheet remains solid, with $2.75 million in cash and an undrawn $2.1 million credit facility as of 30 June 2025. Net assets increased to $4.68 million, bolstered by capital raised through option exercises and the reported profit. The company’s current cash flow and capital structure provide a strong foundation for continued expansion without the need for immediate additional capital. Looking ahead, Biome is on track to meet its Vision 27 target of $75 million in cumulative sales over the fiscal years 2025 to 2027.
Bottom Line?
Biome Australia’s first profit and international expansion set the stage for accelerated growth, but investors will watch closely for sustained momentum and execution.
Questions in the middle?
- Can Biome maintain its rapid revenue growth and profitability in the coming years?
- How will the new proprietary probiotic strain impact future licensing and revenue streams?
- What are the risks and opportunities in scaling international distribution partnerships?
