Highlights

  • Biome Australia (ASX:BIO) reported 30 per cent Revenue growth in FY2026 alongside an improved gross margin.
  • The company is progressing a planned China launch through cross-border E-commerce during FY2027.
  • New probiotic formats and Australian Manufacturing are expected to support the next stage of expansion.
  • International execution, Working Capital and competitive conditions remain key areas to monitor.

Profitable ASX micro caps growing revenue at 30 per cent are not common, which is one reason Biome Australia (ASX:BIO) has attracted investor attention. The complementary medicines company behind the Activated Probiotics range delivered its FY2026 numbers in late August, then followed with a China distribution agreement and two new product formats inside a fortnight. The question investors may be weighing is whether the growth rate can be sustained as the Business becomes larger.

Latest Development

Biome Australia (ASX:BIO) lodged its preliminary final report in late August 2026 for the year to 30 June 2026. Revenue rose 30 per cent to A$23.9 million, gross Margin improved 100 basis points to 62.1 per cent, and EBITDA excluding share-based payments more than doubled to A$2.0 million from A$0.9 million.

Net profit after tax was A$3.6 million against A$0.2 million in FY2025. That figure sits above reported EBITDA of A$2.0 million, so the headline profit growth is best read alongside the underlying Earnings measure rather than on its own. Net Assets doubled to A$9.4 million.

Company Overview

Listed in November 2021, Biome develops and markets evidence-based complementary medicines, with the Activated Probiotics range as its flagship. The company reported that the range ranked first among probiotics in Australian pharmacy by both units and value.

A second brand, Activated Therapeutics, broadened the practitioner-grade portfolio during FY2026. Domestic sales of A$22.1 million grew 30 per cent, while international revenue of A$1.8 million across four markets rose 20 per cent.

Recent Developments

On 27 August 2026, Biome announced a heads of agreement with H&S Global to launch in China through cross-border e-commerce, a pathway that avoids Blue Hat registration requirements. Launch is planned within FY2027 following execution of a master agreement later in 2026, with volumes, targets and timing to be confirmed then. Exclusivity is guaranteed for the first year only.

In early September 2026, the company announced two 60-pack formats for H1 FY2027: Biome Daily Probiotic 60 and Biome Daily Kids Probiotic 60, supplied through community pharmacy wholesalers and the practitioner channel.

Financial and Operational Position

Cash was A$3.6 million at 30 June 2026, up A$0.8 million on the prior year. Debt was reduced by A$1.0 million to A$1.9 million, with A$3.1 million undrawn under a A$5.0 million NAB facility. No Dividend was paid or declared for FY2026 or FY2025.

Biome also signed a binding agreement with Specialty Probiotics Australia for onshore manufacturing at zero capital cost, which it expects to structurally improve Cost of Goods Sold and working capital efficiency.

What Investors May Watch Next

Execution of the China master agreement, expected later in 2026, would convert the heads of agreement into firm volumes and targets. The start of Australian manufacturing is another checkpoint, since part of the margin improvement case rests on its implementation.

Beyond those, the uptake of the 60-pack formats and progress with international distribution partnerships will indicate whether overseas revenue can scale from a relatively small base.

Risks

Complementary medicines is a crowded category with significant promotional intensity and retailer bargaining power. The China arrangement is not yet binding on volumes, and exclusivity beyond year one depends on meeting purchase targets. Cash of A$3.6 million remains relatively modest compared with the company's expansion plans. The large percentage increase in net profit also came from a low base, which may make future year-on-year comparisons more demanding.

Key Takeaways

What keeps Biome Australia (ASX:BIO) in focus is the combination of 30 per cent revenue growth, an improving gross margin and several documented expansion initiatives. The China launch, onshore manufacturing and new pack formats each form part of the company's FY2027 growth programme.

The outlook may depend on whether those initiatives translate into sustained repeat volumes, further margin improvement and a larger contribution from international markets. Biome also remains exposed to competitive pressures and the execution demands that come with funding continued growth.