Biome Australia Posts 30% Revenue Growth and $3.6m Profit in FY26

Record Profit Driven by Deferred Tax Asset Recognition

Biome Australia Limited (ASX:BIO) reported a remarkable turnaround for the year ended 30 June 2026, posting a net profit after tax of $3.6 million, a 1580% increase on FY25’s $215,000. This surge was significantly influenced by the first-time recognition of a non-cash deferred tax asset of $2.4 million, reflecting the board’s confidence in the company’s ability to generate future taxable profits. Excluding this accounting adjustment, the company still delivered a solid underlying net profit before tax of $1.2 million, up 5.5 times from FY25.

Strong Revenue and Margin Expansion Backed by Operational Leverage

Sales revenue climbed 30% to $23.9 million, fuelled primarily by the Activated Probiotics® range, which includes Biome Daily; now the leading probiotic in Australian pharmacies by units and value. Gross profit rose 33% to nearly $15 million, with gross margins improving slightly to 62.1%, edging closer to the company’s 65%+ target. This margin gain is attributed to a better sales mix and early benefits from operational and inventory optimisations.

Despite a 26% rise in operating expenses to $14 million, the increase lagged revenue growth, showcasing growing operating leverage. EBITDA excluding share-based payments more than doubled to $2.0 million, underscoring improved profitability and cost discipline.

Balance Sheet Strengthened with Reduced Debt and Positive Cash Flow

Biome’s balance sheet showed marked improvement, with net assets doubling to $9.4 million. Cash reserves stood at $3.55 million at year-end, supported by a $3.1 million undrawn facility from NAB. Borrowings were cut by over $1 million to $1.9 million, and operating cash flow swung from a $2.9 million outflow in FY25 to a positive $1.6 million inflow in FY26.

Strategic Moves in Manufacturing and International Expansion

Operationally, Biome secured a binding onshore manufacturing agreement with Specialty Probiotics Australia, enabling local production of Activated Probiotics at no upfront capital cost. This move, targeting September 2026 for the first commercial batch, is expected to reduce costs and improve working capital through shorter inventory and freight lead times.

Internationally, revenue grew 20% to $1.78 million, with new distribution partnerships established with Fullscript in Canada and Uniphar in Ireland, broadening Biome’s presence in key export markets.

Clinical Trials and Product Pipeline Progress

Biome continues to invest in its proprietary probiotic strain BMB18, with clinical trials underway at La Trobe University and the University of Athens. This research aims to strengthen the company’s intellectual property and support its expansion into practitioner-grade products and new international markets.

Leadership Signals Confidence for FY27 Growth

Founder and Managing Director Blair Vega Norfolk highlighted FY26 as the year the business model proved itself, citing Biome Daily’s market leadership and the strategic manufacturing and distribution deals as foundations for a step change in FY27. CFO Lauren Dwyer echoed this optimism, describing FY26 as an inflection point marked by strong revenue growth, improved profitability, and a materially stronger balance sheet.