Nutrition and gut health specialist OptiBiotix (OPTI ) saw revenues climb 45.3% to £2.2m in the 12 months ended 31 December 2021 (FY21), driven by strong performances in both its Probiotic and Prebiotic divisions.
Sales in the company's Probiotic division increased 34% to £1.1 with underlying YoY product sales up 92.6%. Prebiotic sales similarly increased by 59.3% to £1.1m with underlying sales up 122%.
Both divisions were profitable, generating EBITDA of £179K and £13K respectively and helping the company deliver an overall gross profit increase of 27.7%, to £1.1m.
Moreover, the company reported a substantial increase in the value of its holding SkinBioTherapeutics plc (SBTX) to £13.7m (2020: £8.9m) in the fiscal year. This resulted in a net profit from the investment of £6.3m (2020: £5.8m).
The company ended FY21 with total cash balance of £2m, up 122% from £0.9m in 2020.
Post-period, OptiBiotix successfully floated its formerly wholly-owned subsidiary ProBiotix Health plc on the AQSE Growth Market in March 2022, returning a dividend to OptiBiotix shareholders. The float resulted in a distribution of approximately 0.55 ProBiotix shares for every OptiBiotix ordinary share held at the end of 25 March 2022.
Outlook
The company expressed confidence in continuing to deliver "growing value for our shareholders" while acknowledging the conflict in Ukraine and global inflationary pressures as ongoing obstacles. A growing list of new agreements with large international partners (see below) in large markets, and an active 2nd-gen product development pipeline with solid underlying science, positions the company for continued growth.
CEO Stephen O'Hara, commented:
"The Company has achieved a second year of strong sales growth with a 45% increase in revenues, a 27.7% increase in gross profit, both ProBiotic and PreBiotic business's EBITDA profitable, and a Group net profit of £6.3m (including the increase in the Group's investment in SBTX).
With our products winning awards in several jurisdictions and an increasing number of large companies like The Hut Group, Holland and Barrett, AlfaSigma, Apollo Hospitals, and Nahdi Medical using our products, we are in strong position for further growth.
With no debt, a healthy balance sheet, a growing reputation within the industry, second-generation products close to commercialisation, and growing consumer interest in the microbiome and gut health, the Company is in a strong position for continued growth in this exciting area of healthcare."
Management News
In management news, OptiBiotix reported the appointment of René Kamminga as CEO of its Prebiotic division, as part of the company's plan to appoint experienced industry leaders for each division of the business.
Additionally, the company appointed Zac Sniderman as Business Development & Sales Director in North America and Shiraz Butt as E-Commerce Director, reflecting OptiBiotix' focus on the US market and direct-to-consumer sales.
Steen Andersen was appointed as CEO of aforementioned ProBiotix Health plc.
New Agreements and Product Development
OptiBiotix noted some international deals in FY21. The company signed agreements with Apollo Hospitals in India and Nahdi Medical in Saudi Arabia. It also launched a weight management product containing SlimBiome® through Arrotex Pharmaceuticals in Australia.
The same patented SlimBiome® won best weight management product in the US (Nutrition Industry Executive Award). It has also been approved by Health Canada as a licensed product with health claims for weight management.
OptiBiotix also ventured into the sports nutrition market, launching the LeanBiome® in The Hut Groups (THG) Myprotein product range.
The company made significant progress in 2021 with the manufacture of its SweetBiotix® dietary fibre and Microbiome modulators. SweetBiotix® uses new advances in science and manufacturing and has the potential to disrupt the £20b global sugar substitutes market.
Post-period, OptiBiotix published a human study in a peer-reviewed scientific journal showing LPLDL® can achieve similar reductions in total cholesterol and bad cholesterol to statins, without side effects. LPLDL® is a unique probiotic for cardiovascular health and the cornerstone of the company's Probiotic business.
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