AUS
NZ
UK
CA
USA
IND
Highlights:
- Avita Medical's (AVH) Q4 revenue increases by 30%, but falls below expectations.
- The company lowers its full-year revenue projection for 2024.
- Strong expectations for 2025 with a projected revenue growth of up to 60%.
Avita Medical (ASX:AVH), a leader in advanced medical technology, has revealed it will miss its revenue targets for the 2024 fiscal year, following slower-than-anticipated growth in the fourth quarter. Despite posting a notable increase in quarterly revenue, the company’s figures failed to meet its own expectations.
For the three-month period ending in December 2024, Avita Medical reported a 30% increase in revenue, totaling US$18.4 million ($29.5 million). However, this fell short of the projected revenue range of US$22.3 million to US$24.3 million. This underperformance led to a revision of the company’s full-year revenue forecast, with total revenue now expected to grow by 29% to reach US$64.3 million. This is lower than the previous expectation of US$68 million to US$70 million.
Avita Medical attributed the slow growth to a combination of factors, with the most significant being lower-than-expected purchasing activity from hospitals as the year drew to a close. The company believes this was mainly due to the timing of purchases, particularly by hospitals that typically place orders towards the end of the fiscal year. However, the medical technology firm is optimistic, anticipating that these deferred purchases will return to normal levels early in the first quarter of 2025, helping to make up for the slower Q4.
Looking ahead, Avita Medical remains confident in its growth prospects. The company expects a more favorable 2025, forecasting revenues between US$100 million and US$106 million, reflecting an increase of 55% to 60% from 2024. The growth is expected to be supported by the ongoing success of its skin repair products, including the highly anticipated Recell Go and Cohealyx devices. These products are set to play a critical role in boosting sales as they become more widely distributed and used by healthcare providers in the upcoming year.
Avita Medical is scheduled to report its full-year results on February 13, 2025, and the market is eager to see how the company will execute its growth strategies in the coming months. Despite the slower-than-expected close to 2024, Avita Medical's forward-looking statements suggest a strong growth trajectory for the near future.
