ASX Quarterlies: Biotechs deliver strong performances for shareholders
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It’s quarterlies season as the ASX market announcements page becomes increasingly flooded with lodgements.
The last day for companies to submit reports is the last business day of the first month after the prior quarter. If they don’t, they risk suspension (and consequential panic and anger from shareholders).
Here’s some of the reports which have caught our eye today.
The sleep-related diagnostics device company’s share price rallied +10% today after it announced record Q4 FY22 results.
SOM achieved record quarterly revenue of $21.3 million for the quarter, up 32% on previous corresponding period (pcp). On an underlying basis, when excluding Q4 FY21 covid-19 related HIC allowance, Q4 FY22 was up 36% (+37% in constant currency) versus pcp.
Full year unaudited revenue was $72.6 million, up 16% (+17% in constant currency) versus pcp and above guidance of +15% growth for FY22.
On an underlying basis, when excluding the covid-19 related HIC allowance, FY22 revenue was up 19% (20% in constant currency) versus pcp.
FY22 guidance of breakeven EBITDA remains. The company says the record quarter reflects the impact of successful sales and marketing initiatives in all regions.
It also said it is a sign business conditions improving and overall trend of patient activity and engagement with their medical practitioners is normalising during this stage of the covid-19 pandemic.
Total patients treated worldwide now exceeds 715k with development of SOM’s Rest Assure, the company’s first in-built-technology-enabled oral appliance, progressing during the quarter.
The company had $15.6 million available cash as at June 30 and new debt funding of $16 million (net $11 million after repaying HSBC) which it’s says delivers sufficient capital to support ongoing growth and development of Rest Assure.
Newly listed trading advisor, educator and fund manager Equity Story Group has finished Q4 FY22 with a cash balance of $3.6 million.
EQS listed on the ASX on May 3, after raising $4.65 million and has undertaken several growth and expansion initiatives since including subscriber-based investing, news, and arts media company A Rich Life (ARL).
The company says its sales growth and revenue was impacted by delays with the IPO process which were outside of its control.
However, EQS forecasts its now back on a strong growth path with receipts from customers growing monthly due to an increased spend on marketing.
The company has increased its staff levels by 116% in the past 12 months and now has 7 full-time employees and 6 part-time and contractors.
EQS said it is particularly interested in bringing new stock market analysts and financial commentators into its talent pool and broadening the types and variety of content to subscribers.
Emerging mineral processing tech company Zeotech says it has achieved a milestone quarter operationally, setting it up for future growth.
ZEO’s dual-feed pilot program achieved a successful continuous closed-loop circuit, using lithium process by-product feedstock (leached spodumene) to produce pure Linde Type A manufactured zeolite.
The company was named an industry partner in Curtain University-led Resources Technology and Critical Minerals Processing Trailblazer program.
The program will accelerate commercialisation of Zeotech’s proprietary cleantech innovation for lithium process by-product from current pilot plant phase through to commissioning and factory acceptance of a large-scale commercial demonstration plant. The project is being undertaken in collaboration with the University of Queensland and Covalent Lithium Pty Ltd.
The Credit Suisse Australia Forum – Energey Security amidst ESG Transition, invited ZEO to present on the topic of ‘Capturing the hard to abate: the role of CCUS (carbon capture, usage and storage in industry’.
During the quarter a GHG mitigation scoping study completed by Griffith University, as part of the dual-stream carbon markets and agricultural nutrient management program, identified several opportunities for manufactured zeolites to contribute to climate change mitigation.
ZEO was also accepted into the Australian Research Council (ARC) Industrial Transformation Training Centre for the Global Hydrogen Economy as an industry partner.
ZEO finished the quarter with a $2.907 million cash to fund future growth.
Probiotics play Biome Australia has announced its sales growth accelerated in Q4 FY22 to $1.39 million, up 50.3% and quarterly cash receipts of $1.37 million, up 92%.
Managing director and founder Blair Norfolk said FY22 was a successful one for the company.
“Biome closed the year with a record quarter sales of $1.39 million, unaudited, and another notable year of growth for the company – up 78% on FY21,” he said.
The Q4 results represent an annualised sales run rate of $5.56 million, with the sales growth driven by Biome’s Activated Probiotics in both pharmacy and independent practitioner sales channels.
The Activated Probiotics range was expanded during the quarter with the launch of Biome Baby Probiotic in late May. Biome has now launched five new products since its IPO in November 2021.
The company said it successfully maintained its strong gross margins at 58%, amidst increasing raw material cost and global logistics challenges.
Genomic-tech firm EZZ continued its sales trend from last quarter, closing a strong 4Q FY22 with ~$4.6m in cash inflows from customers, a 16% increase to the previous quarter.
A 46% increase in receipts from last quarter was mainly due to increased sales on Tmall Global during China’s second biggest e-commerce festivals of the year 618 and a quick growth of new e-commerce distribution channels in international markets.
During the festival EZZ’s Bone Growth Capsule was ranked the number one product in its category of children’s nutritional supplements on Tmall Global for sales, reviews and repurchase with a total revenue of 1.7m CNY (~AUD$364k).
The company commenced trading on Douyin (mainland China’s version of TikTok) on June 8 and generated sales revenue of $85K within the first 22 days.
The company said the rapid growth exceeded expectations. Owing to over 670 million active users per month in Douyin, this distribution channel is expected to become another important e-commerce platform for the company along with Tmall.
EZZ released four new hair products to the market near the end of the quarter including: Hair Scalp Scrub, Anti-Frizz Hair Spray, Hair Growth Spray, and Hair Mask.
As of 30 June 2022, EZZ’s cash balance remained robust and closed over $10m. Abundant cash flow allows the company to implement its strategic plan to accelerate its growth.
At Stockhead we tell it like it is. While Equity Story Group, Zeotech and EZZ Life Science are Stockhead advertisers, they did not sponsor this article.