Highlights

  • Biome Australia (ASX:BIO) reported FY26 sales revenue of A$23.88 million, up 30%.
  • Gross profit rose 33% to A$14.94 million, with a higher gross profit.
  • EBITDA excluding share-based payments more than doubled to A$2.00 million, and operating cash flow was A$1.63 million.
  • International revenue grew 20% to A$1.78 million, with new distribution partners in Canada and Ireland.

Biome Australia Limited is a microbiome health company that develops, licenses, commercialises and markets evidence-based live biotherapeutics, commonly known as probiotics, and complementary medicines. The company reported record revenue and higher earnings in August 2026, alongside new distribution agreements and a plan to move manufacturing onshore.

Company Business

Biome's flagship range is Activated Probiotics, led by the Biome Daily product. The company states that Biome Daily is the number one probiotic in Australian pharmacy by units and value, based on IQVIA data. In June 2026, consumer sell-through of the Activated Probiotics range exceeded 100,000 units for the first time.

For Biome Australia (ASX:BIO), research forms part of the model. BMB18, the first wholly proprietary probiotic strain, is in clinical trials at the University of Athens and La Trobe University. International sales contributed A$1.78 million in FY26 across four markets.

Recent Development

In late August 2026, Biome Australia (ASX:BIO) released its results for the year ended 30 June 2026 under the heading of a record year of profitable growth. Management described the business as positioned for a step change in FY27, though no numerical guidance was given.

During the second half of FY26 the company secured a distribution partnership with Fullscript in Canada. It also signed a distribution agreement with Uniphar in Ireland, targeting the European market.

Biome entered a binding onshore manufacturing agreement with Specialty Probiotics Australia at no capital investment from Biome. The arrangement is expected to improve cost of goods and reduce working capital requirements, and the first commercial batch under the agreement was targeted for September 2026. The head office lease, originally expiring on 30 November 2026, has been extended to 30 November 2028.

Financial Performance and Sector Context

Sales revenue for FY26 was A$23,883,240, up 30% from A$18,417,188 in the prior corresponding period. Gross profit increased 33% to A$14,936,188, with gross margin improving on the prior year. Total operating expenses rose 25.7% to A$14,001,150, below the rate of revenue growth.

EBITDA excluding share-based payments, an unaudited non-IFRS measure, increased 115% to A$2,000,296 from A$931,048. Statutory EBITDA was A$1,653,787 compared with A$524,522. Net profit before tax was A$1,186,919, up from A$214,656. Net profit after tax was A$3,608,226, which included a non-cash deferred tax asset of A$2,421,307, so pre-tax profit is the clearer indicator of trading results. Basic earnings per share were 1.62 cents.

Net operating cash inflow was A$1,626,949 compared with an outflow of A$2,890,804. Cash at 30 June 2026 was A$3,551,175, borrowings fell by A$1,005,413 to A$1,900,000 and A$3.1 million remained undrawn under a A$5.0 million facility with NAB. Net assets were A$9,379,697 and net tangible assets were 3.92 cents per share. No dividend was paid or declared.

In the pharmacy probiotic category, the company cites IQVIA data to position Biome Daily against competing products. The company references a gross margin target of 65% or more.

Risks to Consider

The transition to onshore manufacturing requires successful execution, and the first commercial batch timing is a target rather than a guarantee. International distribution depends on partners such as Fullscript and Uniphar. FY26 net profit after tax was boosted by a non-cash tax asset, and the company has not issued numerical guidance. Cash of A$3.6 million and a A$5.0 million bank facility with A$1.9 million drawn frame the funding position, and operating expenses rose 25.7% during the year.

What to Watch Next

Monitoring points for Biome Australia (ASX:BIO) include progress under the Specialty Probiotics Australia agreement and any resulting change in gross margin toward the 65% target. Updates on sales through Fullscript in Canada and Uniphar in Ireland will show the pace of international growth. Equity-linked milestones also fall due, with Loan Funded Share Plan tranches vesting on 2 December 2026 and 20 March 2027, and the Managing Director's long-term incentive performance period ends on 30 June 2027.

Key Insights

Biome Australia (ASX:BIO) closed FY26 with higher revenue, positive operating cash flow and reduced borrowings. Gross margin improved, and the onshore manufacturing agreement is intended to extend that trend. Key items to monitor include margin progress, international distribution outcomes, the clinical program for BMB18 and the reliance on pre-tax rather than post-tax profit when assessing underlying earnings.