The Polynovo Ltd (ASX: PNV) share price is climbing 3% into the green on Tuesday after the medical device company reported its FY24 trading results.
I would stress these are the unaudited results released by the company. Official ASX filings are yet to be posted by the company.
Nevertheless, the numbers show continued top-line strength for Polynovo in FY24, likely one reason why its share price is up nearly 50% this year to date.
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Polynovo share price surges on solid full-year results
- Total revenue of $104.8 million, up 57.5% from $66.5 million last year. This includes all income from the US Biomedical Advanced Research Development Authority (BARDA)
- FY24 sales of $92.0 million, up 54.5% from $59.6 million last year.
- U.S. sales were up 49% year over year to A$68.7 million.
- Rest of world (ROW) sales came to $23.3 million, up 73.1% from last year, driven by its UK, Germany, and Australian markets
What else happened in FY24?
The company's revenue growth to $104.8 million was primarily driven by performance across the entire business.
In the U.S. market, sales surged to $68.7 million, representing a 49% increase on the prior year. This continues a trend that has been in situ since May.
But even its non-U.S. sales were up 73%, underscoring the global demand for Polynovo's products. The company said that turnover was especially strong in the UK and Germany.
As a reminder, Polynovo is in the wound healing business, with a niche in skin regeneration through its NovoSorb technology.
It can be used in several applications, including surgery, trauma, and burns. The technology's advantage is that it is highly versatile and biodegradable.
Beyond financial achievements, Polynovo hit a milestone of treating more than 50,000 patients across 41 countries.
In addition, the Polynovo share price was strong in FY24, driving from lows of $1.12 on 20 October and racing to yearly highs of $2.59 last week.
What did management say?
Chairman David Williams was delighted with the results, highlighting the impressive growth in product sales:
There are many highlights in the year just past. One is the amount of organic growth. A second is the strength of the UKI market from a slow start in non-burns. A third is the enormous need for our product in conflict zones and developing countries supported by WHO, Charities and governments.
Meanwhile, CEO Swami Raote was equally as pleased:
Thanks to the efforts of our clinicians and our people, we continue to make significant strides in our mission to redefine healing for our patients. We are proud of reaching a milestone of touching and healing over 50,000+ patients across 41 countries in our relatively short commercial history.
Our clinicians continue to provide superior insights to help us take NovoSorb technology across different clinical indications through our expanding product portfolio. Although I am proud of what our people have achieved, I remain acutely conscious of our responsibility to meet a global need to heal millions more.
What's next?
Looking forward, Polynovo aims to continue its growth trajectory by expanding the adoption of its NovoSorb technology across different clinical indications, which could benefit its share price.
Based on the trends in its global markets, the uptake has already been strong. The company also plans to target both developed and emerging markets in the future.
Investors can expect more updates during the official release of the audited FY24 results on 23 August 2024.
Polynovo share price snapshot
Over the past six months, the Polynovo share price has surged by 58%, significantly outperforming the ASX 200 Index.
