Melbourne-based medical device company PolyNovo (ASX: PNV) has posted preliminary unaudited group revenue of $150 million for FY26, up 16.1 per cent on the prior year's $129.2 million as its flagship skin regeneration products gained further traction in the United States.
The result, disclosed in a trading update lodged with the ASX, represents growth of 20.3 per cent in constant currency terms, stripping out foreign exchange headwinds that weighed on the company's reported figures throughout the year.
Group commercial sales hit $138.4 million for the full year, a 16.7 per cent increase, with the US market accounting for $102.1 million of that total.
US commercial sales grew 15.6 per cent in reported terms and 21.1 per cent in constant currency, underscoring the strength of demand in PolyNovo's largest market.
The standout performer was NovoSorb MTX, the company's dermal matrix product targeting soft tissue reconstruction, which delivered commercial sales of $12.6 million - up 89.6 per cent on FY25.
NovoSorb BTM, the core burns and trauma product that remains the bulk of the business, posted commercial sales of $125.8 million, growing 12.3 per cent.
“We’re pleased to have finished the financial year strongly, with record sales recorded in the US in June and manufacturing production output increasing significantly compared to H1, increasing gross margin and profitability for the year and therefore an improved cash position," says PolyNovo CEO Bruce Peatey.
"The competitive environment in the US continues to evolve following significant shifts to the reimbursement landscape, and additionally we’ve experienced seasonal decline to the presentation of major burns across many direct markets.
"However, the performance of our products is undisputed. The strategy employed to date, leveraging our strength in major trauma and burns to drive clinician confidence elsewhere, is succeeding, as we see total revenue associated with other complex wound indications growing at a faster rate than large burns."
Peatey says PolyNovo has invested "significantly" in its US-based sales organisation, with frontline personnel now topping 100 people, supported by additional marketing resources.
“Demand for NovoSorb BTM continues to grow, supported by 500-plus clinical articles and abstracts, and nine textbook chapters published in FY26," he says.
"We are seeing the use of NovoSorb MTX accelerate as clinical evidence and peer to peer education drive awareness and use.
"The outpatient opportunity remains a focus, as we prepare for the commercial launch of NovoSorb SynPath.
“With expanded manufacturing capacity, new commercial opportunities and product catalysts ahead, we believe the Company enters FY27 well positioned to continue delivering sustainable growth."
NovoSorb SynPath is a synthetic, sterile, acellular dermal matrix used to manage chronic, partial and full-thickness wounds such as diabetic foot ulcers and venous leg ulcers.
The most significant shift on the financial front for PolyNovo over the past year is the swing to positive free cash flow of $10.4 million, compared with negative free cash flow of $10.1 million in FY25.
Operating cash flow came in at $24 million, although that figure includes $3.5 million in insurance claim receipts related to a fire at the company's research and development laboratory in November last year.
Cash on hand rose to $35.4 million from $33.5 million at the end of FY25.
The strong second-half performance marks a notable turnaround from a subdued first half.
PolyNovo's H1 FY26 results showed commercial sales of $68.2 million and net profit after tax of just $3,000 - down 99.9 per cent on H1 FY25's $3.3 million - as the company grappled with temporary manufacturing output reductions and currency headwinds.
Chairman Leon Hoare has described the FY26 revenue result as solid, reflecting a broadening of both the customer and indication base.
"As anticipated, both operating and free cash flow were strong," says Hoare.
“Along with the many highlights the CEO has outlined, which reflect strong progress, the board is delighted with the multiple executive leadership appointments actioned.
"A recent strategy review and update highlighted multiple areas of opportunity and growth, and accordingly, FY27 shapes as an exciting year.”
PolyNovo has not finalised full-year EBITDA and NPAT figures which are expected to be released on 26 August, leaving the full extent of the second-half profit recovery as the key question for investors ahead of the final result.
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