The Aroa Biosurgery Ltd (ASX: ARX) share price is on the move on Tuesday morning.
At the time of writing, the soft-tissue regeneration company's shares are up 1.5% to $1.20.
Why is the Aroa Biosurgery share price rising?
Investors have been buying the company's shares this morning following the release of a better than expected full year result.
For the 12 months ended 31 March, Aroa reported product sales of NZ$21.6 million. While this was down 2% year on year, it exceeds the company's guidance of NZ$21 million.
Things were better on a constant currency basis, with product sales coming in at NZ$23.1 million. This would have been a 5% increase on the prior corresponding period.
On the bottom line, Aroa reported a normalised loss before income tax of NZ$7.4 million. This compares to a loss of NZ$3.9 million in FY 2020.
Management was pleased with the result, particularly given how COVID-19 headwinds in the US significantly impacted procedure volumes.
Outlook
Pleasingly, management believes the company is well-placed as it enters into FY 2022.
In light of this, the company expects its FY 2022 product sales to grow 39% to 53% to between NZ$30 million and NZ$33 million.
This is based on a NZD/USD exchange rate of US$0.72 and is subject to no resurgence of COVID-19 in the United States, its US sales and marketing distributor TELA Bio delivering strong growth, and continued improvement in US medical procedure numbers.
However, as a result of an increased investment into its sales force, its operating earnings will be negative.
Aroa's Founder and CEO, Brian Ward, said: "We believe that supported by our newly expanded fully dedicated sales team, Aroa is poised to continue to grow strongly this year by ramping up Myriad sales and penetrating into further accounts."
"With the growing body of evidence to validate the clinical efficacy of Myriad, we expect Myriad will not only help deliver strong growth in FY22, but it will also underpin growth in the medium term. We anticipate FY22 will be a set-up year for Symphony, which will ramp up in FY23 to deliver a further wave of growth. Symphony has the potential to significantly add to our existing Endoform business in the outpatient wound centre setting."
"We are pleased to have completed the recent sales transition from Appulse and with an expanded product portfolio, we consider Aroa is well placed to grow in the emerging post-COVID-19 healthcare environment, where clinical performance and value will come under increasing scrutiny. Aroa's products are designed to improve clinical outcomes at a cost that improves patients' access to the benefits of biologics, and to drive better healing. We are focused on unlocking regenerative healing for everybody," he concluded.
