Cryosite Accelerates Growth with 12% Revenue Rise and Strategic Facility Expansion
Cryosite Limited reported a 12% increase in revenue for FY25, driven by a 58% surge in its ultra-frozen and cryogenic segment, while deferring dividends to fund expansion plans.
- 12% revenue growth to AUD 14.1 million in FY25
- 58% increase in ultra-frozen and cryogenic segment revenue
- EBITDA up 19%, EBIT up 22%, net profit up 2%
- No dividend declared for FY25 to support growth
- Completed 17% facility expansion fully funded by cashflow
Financial Performance Highlights
Cryosite Limited, a specialist in temperature-controlled logistics for clinical trials and biologics, has delivered a solid financial performance for the year ended 30 June 2025. The company reported revenue of AUD 14.1 million, marking a 12% increase over the previous year. Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 19% to AUD 3.37 million, while earnings before interest and tax (EBIT) increased 22% to AUD 2.5 million. Net profit after tax grew modestly by 2% to AUD 1.88 million despite a significant 160% rise in income tax expense, attributable to the full utilisation of carried-forward tax credits in the prior year.
Strategic Growth in Ultra-Frozen and Cryogenic Segment
The standout contributor to Cryosite's growth was its ultra-frozen and cryogenic segment, which saw revenue surge by 58% to AUD 1.86 million. This segment, which handles advanced therapy medicinal products such as cell and gene therapies, mRNA-based medicines, and biological samples, has become strategically significant enough to warrant standalone reporting. The company invested heavily in expanding its ultra-frozen storage capacity, including a 17% expansion of its main facility and a 40% increase in freezer capacity, all fully funded through operating cashflows.
Capital Management and Dividend Policy
Reflecting its growth ambitions, Cryosite's board resolved not to declare a dividend for FY25, diverging from the previous year's 2 cents per share unfranked dividend. The decision aligns with plans to secure a second facility to support future expansion. The company maintains a strong balance sheet with no bank borrowings and a cash balance of AUD 5.06 million at year-end. Its robust operating cashflows and pre-approved funding lines position Cryosite to execute its growth strategy without the need for a capital raise.
Operational and ESG Excellence
Operationally, Cryosite reported a 21% increase in volumes and achieved record quality performance metrics. The company also enhanced its digital systems for traceability and audit readiness. On the environmental, social, and governance (ESG) front, Cryosite was awarded a Gold Medal by EcoVadis for its commitment to sustainability and earned Australian Trusted Trader status, underscoring its secure supply chain practices. These accolades reflect Cryosite's ongoing focus on responsible business practices alongside growth.
Leadership and Governance
Leadership changes included the appointment of Andrew Kerr as Executive Director and the retirement of the CEO during the year. The company introduced a share-based compensation plan to align executive incentives with shareholder interests. Governance standards remain high, with the board actively monitoring risks such as supply chain disruptions and regulatory compliance, ensuring Cryosite is well-positioned in a competitive and evolving market.
Looking Ahead
While Cryosite did not provide explicit forward guidance, the financial results and strategic initiatives signal confidence in continued growth. The expansion of ultra-frozen and cryogenic capabilities, combined with a strong balance sheet and ESG credentials, position the company to capitalize on increasing demand in advanced therapy logistics and clinical trial services.
Bottom Line?
Cryosite’s FY25 results set the stage for accelerated growth, but investors will watch closely how the company balances expansion with profitability amid rising tax expenses.
Questions in the middle?
- How will Cryosite’s planned second facility impact future revenue and margins?
- What are the implications of the dividend suspension on investor sentiment and share price?
- How will Cryosite sustain growth in the ultra-frozen and cryogenic segment amid increasing competition?
