Aroa Biosurgery (ASX:ARX), a specialist in soft tissue regeneration, has announced its second consecutive quarter of positive cash flow. The company’s cash flow for the three months ending March totaled NZ$1.1 million, bolstered by increased customer receipts of NZ$20.1 million and the absence of large, one-off expenses. Net cash outflows from investing activities amounted to NZ$600,000, while total cash on hand increased by NZ$100,000 to NZ$22 million, maintaining a debt-free position.
Sales of Aroa’s high-margin Myriad Matrix products, used for surgical soft tissue reconstruction and complex wounds, played a significant role in this positive result. The company reported an 11% increase in sales revenue compared to the previous quarter and a 32% increase compared to the same period last year. Myriad’s US$2 million in sales revenue for March marked a record high, driven by increased sales productivity and market penetration. Furthermore, Myriad Matrix and Myriad Morcells were assigned permanent Level II codes under the US Healthcare Common Procedure Coding System, which will streamline reimbursement processes for customers and enable insurers to access verified cost-effectiveness data.
Aroa has reaffirmed its full-year constant currency revenue guidance between NZ$76 million and NZ$79 million, with normalized EBITDA expected to reach up to NZ$200,000. Additionally, TelaBio, Aroa’s partner, reported full-year 2024 revenue of US$69.3 million, a 19% increase year-over-year, fueled by growing demand for the Ovitex reinforced bioscaffold product, used in hernia and abdominal wall repairs, with sales increasing by 17%.
