MVP Posts 17.7% Revenue Growth and Positive H2 FY25 Operating Cashflow
Medical Developments International (MVP) reports positive operating cash flow in H2 FY25, driven by strong Penthrox sales and strategic distribution shifts in Europe. The company eyes further growth amid regulatory progress and efficiency gains.
- Positive operating cash flow achieved in second half of FY25
- Group revenue up 17.7% year-on-year to $39.1 million
- Penthrox distribution transitioned to new partners in France and Switzerland
- 43% volume growth in Australian hospital segment for Penthrox
- Operating costs reduced by approximately $5 million compared to prior year
Financial Performance and Cashflow Turnaround
Medical Developments International Limited (ASX – MVP) has delivered a marked improvement in its financial performance for the full year ending June 2025. The company reported group revenue of $39.1 million, a 17.7% increase over the previous year, buoyed by higher pricing and volume growth, particularly for its flagship pain relief product, Penthrox.
Notably, MVP achieved positive operating cash flow in the second half of FY25, reversing prior cash burn trends. Cash from operating activities improved by $10.7 million year-on-year, with only a marginal $43,000 cash used for the full year, compared to $10.8 million used in FY24. This turnaround reflects disciplined cost management, improved margins, and increased sales volumes.
Strategic Distribution Shifts in Europe
A key highlight was the successful transition of Penthrox distribution in France and Switzerland to new partners; Ethypharm and Labatec respectively. While this transition caused a near-term dip in revenue and margins from these markets, MVP expects long-term benefits through enhanced market access and stronger customer relationships. European demand for Penthrox grew 15% year-on-year, signaling solid momentum across the continent.
Growth in Australian Hospital Segment
Domestically, MVP saw a 43% increase in Penthrox volume within Australian hospitals, driven by ongoing medical engagement and commercial initiatives aimed at establishing Penthrox as a standard of care in emergency departments. CEO Brent MacGregor emphasized the company’s commitment to accelerating adoption through targeted investments, underscoring the significant growth potential in this segment.
Cost Efficiency and Outlook
Operating costs were reduced by approximately $5 million compared to the prior year, reflecting efficiency initiatives implemented since mid-2024. MVP expects underlying earnings before interest and tax (EBIT) for FY25 to be strongly improved over FY24, supported by an $8 million benefit from higher average Penthrox prices and operational efficiencies.
Looking ahead, the company anticipates some earnings pressure in the second half of FY25 due to foreign exchange fluctuations but remains confident in its growth trajectory. Regulatory progress is also on the horizon, with a decision expected soon from the Irish regulatory agency on extending Penthrox’s indication to pediatric patients aged six and above, potentially unlocking further market opportunities across Europe.
Bottom Line?
MVP’s FY25 results mark a pivotal step toward sustainable growth, but upcoming regulatory decisions and market adoption will be critical to watch.
Questions in the middle?
- How will the new European distribution partnerships impact MVP’s revenue and margins long term?
- What specific investments will MVP make to accelerate Penthrox adoption in Australian hospitals?
- How might foreign exchange volatility affect MVP’s earnings in the coming quarters?
