Polynovo Ltd (ASX: PNV) shares are catching the eye on Wednesday.
In morning trade, the ASX 200 stock is up 11% to $1.36.
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Why is this ASX 200 stock jumping
Investors have been fighting to get hold of the medical device company's shares this morning in response to the release of its unaudited full year update after the market close on Tuesday.
Polynovo is the company behind NovoSorb BTM, which is a dermal scaffold for the regeneration of the dermis when lost through surgery, trauma or burn.
According to the release, the ASX 200 stock recorded a 28.9% increase in group sales to $118.6 million for FY 2025. This reflects a 28.7% increase in US sales to $88.4 million and a 29.6% lift in Rest of the World sales.
As for earnings, the ASX 200 stock is expecting its FY 2025 EBITDA to be in the range of $11.2 million to $12.4 million. This will be a significant increase on the $3.6 million it recorded a year ago.
In addition, it revealed that its cash flow from operations was $15.7 million in the second half. This compares to an outflow of $12.5 million in the first half.
As a result, its cash and cash equivalents was $33.5 million at the end of June. This is up from $22 million at the end of March and includes capital expenditure and the repayment of debt.
Management commentary
Commenting on the company's performance in FY 2025, acting CEO, Dr Robyn Elliott, said:
The excellent FY25 results are an outcome of driving expansion of the NovoSorb BTM and MTX portfolios in line with our strategic plans to deliver superior growth. New regulatory filings continue to address geographic market expansion and clinical indications not covered by existing products. Additionally, we are focused on delivering new applications of PNV's platform technology to ensure diversification and growth acceleration.
The ASX 200 stock's chair, David Williams, adds:
I like to review the year and the go forward from a high level and all I see is growth and opportunity. In the U.S. I see additional U.S. staff being actively recruited and I see NovoSorb MTX growing strongly. The U.S. is the engine room, but the UK and other markets are also showing significant growth. I see us now supplying in 46 countries and the number of countries, hospitals and patients we supply continues to increase. The growth within the wound care silo of our business continues to be driven by surgeons as well as ourselves. The uses surgeons are finding for BTM and MTX continues to surprise and amaze.
Outlook
The good news is that management is confident in ongoing revenue growth from the Rest of the World and the US, where it now has 89 people in the field plus another 9 being recruited. It notes that this has underpinned a 59% U.S. sales orders and a 43% lift in units sold.
In addition, it highlights that its upward trajectory continued in June with record monthly commercial sales of A$12.8 million and record revenue of A$13.7 million.
The ASX 200 stock also revealed that its cash flow from operations is expected to increase in FY 2026 as its profit momentum continues in Australia, New Zealand, the UK, and the U.S.
