Aroa Biosurgery (ARX) AGM 2024 summary

Opening remarks and agenda

• Meeting opened with board members present in person and online, agenda outlined, and voting procedures explained for both in-person and remote attendees.

• Presentations from key executives and auditors were scheduled before moving to financial statements and resolutions.

• Focus on unlocking regenerative healing and highlighting Aroa's competitive advantages in the biosurgery sector.

Financial performance review

• Myriad direct sales grew 73% year-on-year, reaching US$14M in FY24, but total sales were below initial guidance due to reduced inventory purchases by TELA Bio in the first half.

• TELA Bio partnership contributed US$63M in OviTex sales, with 40% year-over-year growth.

• FY24 product revenue was NZ$69M, with a gross margin of 85% and normalised EBITDA of -NZ$3M.

• FY25 guidance projects NZ$80–87M in revenue (~25% CAGR), gross margin above 85%, and EBITDA of NZ$2–6M, moving toward profitability.

• R&D spend to decrease from over 20% to about 10% of sales.

Board and executive committee updates

• Darla Hutton joined the board, bringing global commercial operations experience; standing for election at this meeting.

• Phil McCaw and John Pinion retired by rotation and offered themselves for re-election.

• Board highlighted as diverse, proactive, and focused on evolving with company needs.

• CEO and Managing Director presented a report summarizing company progress and strategic direction.