PolyNovo (ASX:PNV) Eyes Further Revenue Growth After Profitability Turnaround in FY24

Highlights

• In FY24, PNV’s revenue grew 57.5% YoY to AUD 104.8 million.
• The company achieved a net profit after tax of AUD 5.3 million in FY24, compared to a loss of AUD 4.9 million in FY23.
• In 1HFY25, U.S. sales were up 27.9% YoY to AUD 41.2 million, and ROW sales grew 28.6% YoY to AUD 12.9 million.

PolyNovo Limited (ASX:PNV) is an ASX-listed medical device organisation with specialisation in advanced wound care solutions. The company has consistently delivered revenue growth on the back of sales of its NovoSorb platform in the US and expanding international markets. For the full year ended 30 June 2024, PNV reported a 57.5% YoY revenue growth, reaching AUD 104.8 million, compared to AUD 66.5 million in FY23. A significant turnaround was observed in profitability, with a net profit after tax of AUD 5.3 million, compared to a loss of AUD 4.9 million in the previous year. During the reported period, operational cash flow improved from negative AUD 6.6 million in FY23 to positive AUD 3.7 million.

In FY24, record sales were achieved in the U.S., which surged by 49% YoY to AUD 68.7 million, and sales in the Rest of the World (ROW) segment saw an even more impressive 73.3% YoY increase.

Trading Momentum in 1HFY25

Building on this momentum, PolyNovo’s unaudited 1HFY25 results indicate continued growth in the U.S. sales, increasing by 27.9% YoY to AUD 41.2 million. Similarly, ROW sales increased 28.6% YoY to AUD 12.9 million, driven by performances in the UK, Spain, Germany, Turkey, and Hong Kong. The company also entered new markets, including Malta, Portugal, and Peru.

Total group revenue, including contributions from BARDA, rose to AUD 59.9 million, reflecting a 22.8% increase.

Outlook

Looking ahead, PolyNovo forecasts further revenue expansion in direct markets and expects to strengthen its distribution network in Germany and Canada in FY25.

The company is preparing to file additional FDA 510(k) clearances for NovoSorb MTX and NovoSorb BTM in FY25 with the objective to expand its product portfolio and increase the addressable market.

Investment in R&D and pipeline development continues, with an additional manufacturing facility expected to be operational by December 2025.

Share performance of PNV

PNV shares closed 0.76% lower at AUD 1.95 per share on 5 February 2025. Over the past year, PNV’s share price has increased by almost 4% however, in the last six months, it has dropped by 17.37%.

52-week high of PNV is AUD 2.78, recorded on 1 August 2024 and 52-week low is AUD 1.81, recorded on 14 February 2024.

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 05 February 2025. The reference data in this report has been partly sourced from REFINITIV.

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