SomnoMed (SOM) H2 2024 earnings summary

Executive summary

• FY 2024 revenue grew 9.6% to AUD 91.7 million, with over 100,000 units sold for the first time and EBITDA of AUD 0.6 million at the top end of guidance.

• Net cash position improved to AUD 16.2 million after raising AUD 38.1 million in equity and repaying all debt.

• Operational improvements included right-sizing the cost base, a shift to newer generation products, and appointment of new co-CEOs.

• Cost reduction initiatives executed, with benefits expected in FY 2025.

• Product mix shifted to SomnoDent Avant and Herbst Advance Elite lines, supporting growth.

Financial highlights

• Revenue grew 9.6% year-over-year to AUD 91.7 million, in line with revised guidance.

• EBITDA was AUD 0.6 million, down from AUD 2.1 million in FY 2023, but within guidance.

• Product gross margin was 69% (MAS gross margin 69.1%), down from 72% (71.5%) in FY 2023, mainly due to manufacturing constraints.

• Group gross margin was 60.2%, down from 62.1% in FY 2023.

• Net cash at year-end was AUD 16.2 million, up from AUD 12 million, with no commercial borrowings.

Outlook and guidance

• FY 2025 revenue guidance is approximately AUD 100 million, representing over 9% growth year-over-year.

• EBITDA expected to exceed AUD 5 million in FY 2025.

• CapEx spend forecasted between AUD 3 million and AUD 4 million.

• Early FY 2025 trading shows 20% year-on-year revenue growth, expected to normalize as backlog clears.

• Rest Assure FDA response due by early September 2024, with global beta market assessment planned for 2025.