PolyNovo Limited (ASX: PNV) reported a 21.3% increase in constant-currency NovoSorb product sales to A$138.4 million for the fiscal year ended June 30, 2026, while adjusted EBITDA rose 50% to A$13.4 million.
Total revenue reached A$150.0 million, up 16.1% from the prior year, driven by a 15.6% rise in U.S. sales to A$102.1 million and a 20.0% increase in rest-of-world sales to A$36.3 million. Operating profit edged up 3.8% to A$7.8 million, though net profit after tax declined to A$7.3 million from A$13.2 million due to a current-year tax expense.
NovoSorb MTX sales nearly doubled to A$12.6 million, with U.S. revenue jumping 83.7% to A$12.2 million. The company added 200 new U.S. hospital accounts, bringing its total to more than 880, while its U.S. commercial team expanded to 132 employees, including 106 sales representatives. Gross margin remained stable at approximately 89%, with management expecting it to stay within a 90% to 95% range through the first half of fiscal 2027.
Capital expenditures totaled A$13.8 million, primarily for the completion of a new manufacturing facility in Port Melbourne. Free cash flow reached A$9.4 million, while cash and cash equivalents rose 5.7% to A$35.4 million at year-end. The company also repaid A$5.3 million in borrowings.
International growth remained robust, with constant-currency sales rising 79.0% in Turkey, 52.8% in India, and 49.9% in Hong Kong. The Asia-Pacific region expanded 37.8%, while the Americas grew 20.2% and EMEA advanced 17.6%. Management noted the new facility will reduce gross margins by 1% to 1.5% once fully operational around March 2027.
PolyNovo targeted a Premarket Approval submission for NovoSorb MTX by the end of calendar 2027, with FDA review expected to take approximately 12 months. The company also highlighted progress in clinical and academic publications, with 535 articles and abstracts featuring NovoSorb, including 45% focused on non-burn indications.
Shares of PolyNovo fell 8.02% to A$0.975, trading near the lower end of their 52-week range of A$0.81 to A$1.665.
