Biome’s Profit Turnaround Highlights Risks in Early-Stage International Expansion

Strong Financial Turnaround

Biome Australia Limited has marked a significant financial turnaround in the half-year ended 31 December 2024, reporting its maiden net profit of $433,395 compared to a loss of $1.53 million in the same period last year. This milestone follows four consecutive quarters of positive EBITDA, underscoring the company’s improving operational efficiency and market traction.

Revenue surged 47.4% to a record $8.86 million, fueled primarily by robust sales of Biome’s flagship Activated Probiotics range. The company’s focus on clinically-backed live biotherapeutics appears to be resonating strongly within its target markets.

Margin and Cost Control

Alongside revenue growth, Biome improved its gross margin slightly to 61%, up from 60.2% in the prior corresponding period. This margin expansion, though modest, reflects effective cost management in production and supply chain operations.

Operating expenses were carefully controlled, with the company noting that cash outflows from operations included one-off payments such as annual bonuses and a three-year management long-term incentive. Excluding these, operational cash outflow was minimal, improving by 91% compared to the previous half-year.

Distribution and Market Expansion

Biome’s distribution network in Australia expanded by 20%, growing from 5,000 to 6,000 points of sale. The company’s largest channel remains Australian community pharmacies, with strong sales growth reported through national partners Terry White Chemmart and Priceline Pharmacy. The practitioner market also saw significant volume increases, indicating broadening acceptance among healthcare providers.

Internationally, Biome has begun early-stage distribution in Canada, which is showing promising signs despite its nascent status. Other key markets including the UK, Ireland, and New Zealand continued to deliver solid growth, supporting Biome’s strategy of geographic diversification.

Financial Position and Outlook

As of 31 December 2024, Biome held $2.59 million in cash and reported net assets of $4.5 million, reflecting a strengthened balance sheet. The company’s ability to generate positive EBITDA and improve cash flow metrics bodes well for sustaining growth and funding ongoing expansion initiatives.

Notably, the board welcomed a new Non-Executive Director, Mr Geoffrey Sam OAM, in November 2024, signaling a potential strategic reinforcement at the governance level as Biome scales.

While no dividends were declared, the maiden profit and operational improvements suggest the company is prioritizing reinvestment to capitalize on growth opportunities, particularly in international markets.