Polynovo (ASX:PNV) expects significant revenue growth in direct markets

Highlight

• In FY24, Polynovo's revenue increased by 57.5% YoY to AUD 104.76 million, driven by commercial product and BARDA sales.
• The US market saw nearly 49% growth, with USD 1 million in product sales.
• EBITDA turned positive at AUD 6.64 million in FY24, with profit attributable to owners jumping by 206.8% YoY to AUD 5.26 million.

Polynovo Limited (ASX:PNV) is an ASX-listed medical technology company that develops medical devices by employing its patented bioabsorbable polymer technology Novosorb®. PNV’s training and products are accessible across more than 42 countries.

In the financial year 2024 (FY24), the company’s revenue increased by 57.5% YoY to AUD 104.76 million, driven by higher revenues from the commercial product and BARDA sales segments. During the reported period, EBITDA turned positive to AUD 6.64 million, compared to a loss of AUD 2.82 million in the previous corresponding period.

In FY24, profit attributable to the owners of the company jumped 206.8% YoY to AUD 5.26 million compared to a loss of AUD 4.92 million in FY23. The year ended with cash balance of AUD 45.9 million.

Outlook

In FY25, the company expects to see substantial revenue growth in direct markets, especially the US, UK, ANZ, Hong Kong and India. Moreover, the key distributor markets, including Canada and Germany, are also expected to continue growth momentum from FY24.

Growth prospects for ASX healthcare stocks

The company is also expected to benefit from a 1% annual increase in payroll jobs in the week ending 15 June 2024, as reported by the Australian Bureau of Statistics (ABS). During the reported period, payroll jobs grew in seven of 19 sectors with a maximum surge of 0.6% month-on-month in the healthcare and social assistance sector.

Share performance of PNV

PNV shares closed 0.93% lower at AUD 2.13 apiece on 28 October 2024 with a market cap of AUD 1.48 billion. In the past one year, PNV’s share price has increased by almost 87%, and in the last three months, it has declined by around 18.39%.

52-week high of PNV is AUD 2.78, recorded on 1 August 2024, and 52-week low is AUD 1.095, recorded on 23 October 2023.

PNV Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 28 October 2024. The reference data in this report has been partly sourced from REFINITIV.

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