Aroa biosurgery. Nz company listing on asx

[percy]

Quite a large drop from the SSP with news due this week. Just being hammered with the general market or is there more to it?

The share price weakened after the 25th November half year report.
Looks as though there were too higher expectations built into their share price at over $1.50.
I do not know whether the current 84 cents is good buying or not ,as cash outflow from operating activities were $5.8mil for H1 .FY 22.which seemed to me to be high compared to their $17.2 mil revenue.

[The diver]

I could understand the consistent downward trend with too high expectations could account for the decrease to $1 but a ~12% drop on Monday with no news seems drastic. I see from the financial report that Net cash outflow of $5.8m included a one of interest expense of 1.5M for their debt which was paid off with the capital raising. So ongoing should be less. Increased staffing though probably going to be a big ongoing cash outflow increase.

Their revenue guidance for FY22 is based on an assumed exchange rate of 0.72 NZD/USD. It has been consistently lower than this since the announcement so I wonder if this could have an impact at all on the final announcement.

[Pegasus2000]

Non-executive director Phil McCaw bought 81925 (AUS 61443.95, $0.75 per share) in 12 April 2022.

[Pegasus2000]

26 April, 2022


Financial Highlights

• Preliminary unaudited FY22 full year product revenue of approximately NZ$39.2 million, being NZ$37.7 million on a constant currency[1] basis and exceeding the Company’s constant currency guidance of NZ$34-37 million. This represents constant currency growth of approximately 84% on FY21.
  
• H2 FY22 preliminary unaudited product revenue grew 19% on H1 FY22 and 66% on H2 FY21, on a constant currency basis.
  
• Preliminary unaudited total revenue of approximately NZ$39.7 million for FY22, representing approximately 78% growth on FY21.
  
• Net cash flow outflow from operations was NZ$5.1 million for the quarter, primarily reflecting the timing of cash receipts on product sales during the quarter.
  
• Net cash outflow from investing activities was NZ$1.4 million for the quarter, reflecting AROA’s investment into the manufacturing facility expansion.
  
• Strong cash balance of NZ$56 million as at 31 March 2022, and the Company remains debt free.

Operational Highlights

• Myriad Matrix™ awarded the Gold Award for “Most Innovative Dressing or Device” at the Journal of Wound Care’s World Union of Wound Healing Societies Awards 2022.
  
• Limited US commercial launch of Symphony™
  
• In-person attendance at four key industry conferences.
  
• Commercial manufacturing has now commenced at AROA’s second manufacturing facility.
  
• AROA will host an investor webinar today at 10.30am AEST to discuss the results. Click here to register.

Soft tissue regeneration company Aroa Biosurgery Limited (ASX:ARX, ‘AROA’ or the ‘Company’) is pleased to provide an update on its activities for the quarter ended 31 March 2022.

[Pegasus2000]

HIGHLIGHTS


FY22 Results

• Audited full year product revenue of NZ$39.2 million, reflecting an 81% increase on FY21. On a constant currency[1] basis, product revenue was NZ$37.7 million (an increase of 84% on FY21), exceeding the Company’s upgraded constant currency guidance of NZ$34-37 million. Total revenue (inclusive of project fees) was NZ$39.7 million, representing growth of 78%.
  
• Product gross margin of 76% (75% constant currency), representing an 8% increase on FY21.
  
• Result delivered despite COVID-19 continuing to impact access to hospitals and procedure volumes in the US.
  
• Normalised EBITDA loss for FY22 was NZ$1.5 million, compared to a loss of NZ$3.3 million in FY21. Normalised loss before income tax was $5.2 million (NZ GAAP Loss before income tax of NZ$8.3 million) compared to NZ$7.5 million in FY21 (NZ GAAP Loss before income tax of NZ$19.1 million).
  
• Strong cash balance of NZ$56.1 million with no debt.

FY23 Outlook

• Product revenue guidance of NZ$51-55 million, to deliver 30-40% growth on FY22.
  
• Product gross margins are expected to improve to 77% due to increased sales of higher margin Myriad™ products and improving manufacturing efficiencies (despite increased indirect overheads from the new manufacturing facility).
  
• AROA is continuing to invest in its US salesforce and product development to drive growth in FY23 and beyond. As a result, it is forecasting an EBITDA loss for FY23.
  Given the dynamic and evolving impact of COVID-19, guidance is subject to no material decline in US medical procedure numbers or sustained disruption to AROA’s manufacturing or transportation activities and TELA Bio, Inc. delivering on its revenue guidance of US$40-45 million in CY22.[2] It also assumes an average NZD/USD exchange rate of 0.70.

[Pegasus2000]

NZD/USD exchange rate of 0.70, the assuming is wrong, should be lower, I think.

[Snow Leopard]

Been on quiet a good run up since early Jul, from a low of $0.65 to today and $1.02.

Last few days have been particularly positive.

[RupertBear]

Been on quiet a good run up since early Jul, from a low of $0.65 to today and $1.02.

Last few days have been particularly positive.

Long may the run up continue, finally back over a $1, not sure why its going up but I will take it still a wee way to go for me to break even

[sb9]

Combination of one or two funds may be in acquisition mode and the pesky sellers all but finished I guess. Got some big holding here and almost back to break even.
Could be some nice clear blue sky days ahead from hereon. Still much cheaper compared to the other outfit PNV, which is trading at much higher multiple.

[audiav]

I sold all mine end of Dec 2021 for about $1.02 when downtrend underway so probably time to take another look now it’s gone full circle. make something on these on the second try lol