The PolyNovo Ltd (ASX: PNV) share price is on the move on Tuesday following the release of a trading update.
In morning trade the medical device company's shares are down a disappointing 10% to $3.04.
What did PolyNovo announce?
PolyNovo's update revealed that the company delivered a 31% increase in sales over the prior corresponding period for the first half of FY 2021.
This was driven largely by a 75% increase in sales during the first quarter, which was offset slightly by slower than expected sales in October and November.
Pleasingly, this softness appears to have ended, with the company's December sales growing strongly and coming in ahead of expectations in the US, New Zealand, and Taiwan markets.
In respect to the key US market, PolyNovo's sales grew 41% during the first half. It is aiming to build on this in the second half with the help of recent appointments.
During the half, PolyNovo hired 12 experienced and dedicated Territory Managers and one sales director in the country. It also notes that it received more requests for proposal (RFP) in the last three months than in the previous nine months, signed two GPOs, and a number of large strategic hospitals.
Management commentary.
PolyNovo's Chairman, David Williams, revealed that COVID-19 had impacted its performance during the first half.
He said: "While we have experienced a few bumps from COVID-19, we have built a significant base of new customers which holds us in a strong position. We will continue to expand our customer base which will enhance our success as the pandemic eases."
The company's Managing Director, Paul Brennan, acknowledges that the near term will be volatile, but remains very positive on the long term.
He commented: "In the short-term forecasting sales will be challenging particularly in the US, however the medium-term outlook is strong, and we continue to see surgeons using and referring NovoSorb BTM to their peers. Once hospitals have more capacity, we will see US and UK sales accelerate just as we have seen in New Zealand and Australia. New geographies offer good opportunities for NovoSorb BTM."
