Shares in probiotics company Biome Australia (ASX: BIO) surged 17 per cent today after the group revealed it is on track for record full-year revenue and on target to meet its three-year growth forecasts.
Investors pushed the microbiome health company's stock to an intra-day high of 32.5c before they closed at 31c today, up 4.5 cents, after the company confirmed it revenue was in line with its Vision 27 growth plan, which targets total revenue of $75 million to $85 million across financial years 2025 to 2027.
The company says it is set to deliver cumulative sales of at least $75 million within the targeted period.
Biome has revealed full-year sales revenue increased 30 per cent to $23.9 million in FY26, a result that it says has been achieved in a difficult environment for the broader consumer health sector.
The growth was led by the existing business, with the company revealing same-store sell-through was well ahead of the category.
Today's update builds on a strong first half for Biome, which delivered record first-half FY26 revenue of $12.4 million, up 40 per cent on the prior corresponding period.
The company posted a record net profit of $1.18 million for the half, a 172 per cent increase, alongside record EBITDA of $1.47 million excluding share-based payments.
Biome, founded by CEO Blair Vega Norfolk, develops and commercialises evidence-based probiotics and microbiome-related health products.
The company sells across pharmacy, grocery and practitioner channels in Australia and has been expanding internationally, with FY24 revenue of $13.01 million providing the base from which the Vision 27 plan was launched in September 2024.
Vega Norfolk says demand from consumers for the company's products is "stronger than ever", reaching 100,000 units sold through in June.
“I’m really proud of the team this year," he says.
"We’ve spent two years building for this, and FY27 is set to be our biggest year yet for scale.
"We look forward to sharing a broader update on our international markets, and following this, our FY27 strategy and audited full-year accounts.”
Underlying demand outpaced reported revenue in FY26 with same-store sales in Australia, across all channels, rising 39 per cent, more than six times category growth of around 6 per cent and ahead of the 30 per cent rise in sales revenue.
At the close of FY26, the company says pharmacy wholesalers had run stock levels and purchase orders right down, which it is anticipating will support a strong start to FY27.
International sales revenue hit $1.8 million, up 26 per cent, with the company establishing positions in Canada, Ireland, the United Kingdom and New Zealand.
The share price reaction comes on the heels of several recent corporate milestones for Biome.
On 3 June this year, the company struck a manufacturing agreement with Specialty Probiotics Australia to bring production onshore, a deal the company expects will lift gross margins from 61 per cent to above 65 per cent over the next 18 months.
That followed an extension of its supply agreement with Italian probiotic supplier Probiotical SpA through 2028, announced on 12 May this year.
The onshore manufacturing shift is designed to reduce lead times and working capital requirements while giving the company greater control over production.
Biome has been working to shake off its microcap status since outlining the Vision 27 strategy, which Norfolk described at the time as a plan to position the company as a leading player in the Australian and international probiotics market.
"Biome has delivered $42.3 million in the first two years, against a plan deliberately weighted toward FY27, when the international business scales from the foundations now built and onshore manufacturing takes effect," says the company.
"Reaching the target calls for a step-up in the revenue Biome adds in FY27.
"The company expects that step-up to be driven by the international inflection, the supply-chain and cash benefits of onshore manufacturing, continued momentum in the core Australian business and its pipeline of new product launches, and further growth initiatives still to be detailed."
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