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Microbiome health company Biome Australia (ASX: BIO) has outlined a major growth plan that aims to deliver total revenue of between $75 million and $85 million over the next three financial years.
The target outlined by the Melbourne-based company in its Vision 27 Strategic Plan released today is a first step in Biome's ambitions to transform from an ASX microcap company to a “major player in the Australian and global complementary medicine markets”.
The move follows Biome delivering another strong financial performance in FY24, when sales revenue surged 80 per cent to $13.01 million and EBITDA hit $287,000 in the second half, closing off three quarters of positive cashflow.
Biome Australia produces and markets a range of live probiotics that help prevent and support the management of health concerns, including low mood and sleep, bone health and cholesterol.
The company uses a practitioner-only distribution model where its products are recommended by health professionals to their patients and customers.
Earlier this year, Biome announced its first retail distribution agreement in the UK and Ireland ahead of a proposed broader push into Europe where Belgium, Netherlands, Luxembourg and France are in its sights.
This month, the company also announced a distribution deal in Canada with new partner Ecotrend Ecologics in its first move into North America.
Biome CEO and founder Blair Norfolk says that after recording significant growth in the business over the past three years from $2 million in revenue in FY21 to $13 million in FY24, the focus is now on the next three years.
Norfolk says the plan is to take Biome from a microcap stock in Australia to “one of the world’s leading complementary medicine brands”.
“We’re going to do that through growing our distribution and business development in our flagship market in Australia,” he says.
“We will aim to grow from roughly 5,000 distribution points to about 8,000 distribution points representing roughly 65 per cent of the addressable distribution market that Biome has in Australia.”
Australia remains the company’s prime market where its current distribution network represents about 40 per cent of the addressable market.
Norfolk says Biome will continue to build on the 75 per cent growth from pharmacy sales last financial year to further develop those accounts and optimise the top performers.
“We will be looking at underperforming accounts or pre-developed accounts to bring their average sales levels up,” he says.
Biome also aims to “gain traction and brand recognition as well as meaningful sales volume in both European and North American markets”.
While Biome looks to expand into Europe, Norfolk says the New Zealand market is performing well via the practitioner model and the company is exploring opportunities to enter the retail market there.
While Australia is an established market that is in “high growth for Biome”, the UK, Ireland and New Zealand are considered developing markets where the company is already established.
“We want to develop those markets further through this period,” says Norfolk.
To manage the company’s growth, Biome is also exploring opportunities to diversify its production base.
Biome’s products are currently manufactured in Italy, but as volume continues to grow, Norfolk is looking to add Australia to its production chain to reduce logistics risks and offset import tax.
Biome shares were trading 3c higher at 72c at 12.54pm (AEST).
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