Biome Australia Posts 40% Revenue Growth to $12.4 Million in H1 FY26
Biome Australia Limited has reported a robust half-year performance, with revenues climbing nearly 40% and net profit more than doubling, driven by strong product momentum and strategic investments.
- Revenue up 39.9% to $12.4 million
- Net profit after tax rises 171.5% to $1.18 million
- Eight consecutive quarters of positive EBITDA
- Increased sales and marketing spend to support growth
- International expansion gaining early traction
Strong Financial Momentum
Biome Australia Limited has delivered an impressive half-year financial result for the period ending 31 December 2025, with revenue increasing by nearly 40% to $12.4 million. This surge was largely driven by continued demand for its Activated Probiotics range alongside the recently launched Activated Therapeutics products. The company’s gross margin remained stable at just over 61%, underscoring efficient cost management amid growth.
Net profit after tax soared by 171.5% to $1.18 million, a significant leap from $433,000 in the prior corresponding period. This performance marks the company’s eighth consecutive quarter of positive EBITDA, reflecting sustained operational strength and profitability improvements.
Investment in Growth and Market Expansion
Biome’s sales and marketing expenses rose to $4.7 million, up from $3.2 million a year earlier. This increase reflects deliberate investments in expanding sales team capabilities, bolstering sales-related activities, and supporting wholesale distribution partnerships. These efforts aim to underpin both domestic growth and international market penetration.
Community pharmacies remain the company’s largest distribution channel, while the practitioner market is also contributing meaningful growth. On the international front, Biome is making early inroads in Canada, complemented by expanding footprints in Ireland, the United Kingdom, and New Zealand. Although still in early stages, these markets show promising traction and potential for future revenue diversification.
Improved Cash Flow and Strengthened Balance Sheet
Cash flow dynamics improved markedly, with operating cash inflow turning positive at $2.09 million compared to an outflow of $1.12 million in the prior period. Cash receipts from customers grew 62%, outpacing revenue growth and indicating enhanced collections and working capital management.
Debt reduction was another highlight, with borrowings falling to $1.5 million from $2.9 million at the previous half-year, supported by repayments under a restructured NAB facility. The company ended the period with $3.36 million in cash and net assets of $6.06 million, positioning it well for continued investment and operational resilience.
Leadership Transition and Outlook
Post-reporting period, Biome appointed Lauren Dwyer as Chief Financial Officer, succeeding Douglas Loh who retired. This leadership change comes at a pivotal time as the company seeks to capitalise on its growth momentum and international expansion.
With an annualised revenue run rate approaching $26 million exiting the half, Biome Australia appears poised to build on its strong foundation. The company’s focus on evidence-based gut health products, combined with strategic investments and expanding global reach, sets a promising stage for the remainder of fiscal 2026.
Bottom Line?
Biome Australia’s robust half-year results signal a company gaining traction, but sustaining growth amid rising costs and international expansion will be the next test.
Questions in the middle?
- How will Biome balance increased sales and marketing costs with profitability in the coming periods?
- What are the specific growth targets and timelines for Biome’s international markets?
- How might the new CFO influence capital management and strategic priorities?
