PolyNovo shares lower as profit jump falls short of estimates
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The news: PolyNovo shares edged lower after the medical devices manufacturer's profit jump in the 2024 financial year failed to meet analysts' expectations.
The numbers: Shares were down 0.8% to $2.57 by 10:45am AEST having advanced nearly 70% over the past 12 months.
PolyNovo reported net profit after tax of $5.26 million, up from a $4.9 million loss a year ago, but short of Visible Alpha consensus estimates of $5.4 million.
Revenue increased 57.5% year on year to $104.8 million while EBITDA rose to $3.6 million from a loss of $2.8 million in FY23.
The context: PolyNovo noted that it ended the financial year with $45.9 million in cash, putting it in a strong position to fuel global expansion. In FY25 it expects to see strong revenue growth in direct markets, particularly in the UK, UK and Ireland, Australia and New Zealand, India and Hong Kong.
The company saw its first successful tender application in India during FY24, while its key distributor markets of Germany and Canada continued to grow.
Melbourne-based PolyNovo produces products aimed at simplifying management of acute complex wounds. Its product NovoSorb BTM is a wound dressing used for the treatment of full-thickness wounds and burns where the dermal structure has been lost to trauma or damaged requiring surgical removal.
The source: ASX announcement
