Next Science (ASX: $NXS) FY23 Financial Highlights

Next Science Limited (ASX: $NXS) has reported a significant increase in revenue and gross profit for the financial year 2023. The company achieved a record revenue of US$22.2 million, marking an 89% year-on-year growth. The gross profit also saw a substantial rise, reaching US$16.2 million, reflecting a 77% increase compared to the previous year. The gross margin stood at 73%, with a notable improvement in the second half of FY23 at 78% compared to 68% in the first half of the year. Despite the EBITDA loss of US$14.8 million, the company's direct product sales surged by 195% year-on-year, reaching US$16.9 million, representing 76% of the total product sales.

Executive Commentary on FY23 Operational Achievements

The operational achievements in FY23 reflect Next Science's commitment to driving growth in its wound care and surgical businesses. The company's strategic focus on direct sales, along with the successful implementation of the Durable Medical Equipment (DME) structure, has significantly contributed to the strong financial performance. The increase in direct product sales, particularly in the wound care segment, and the higher direct sales of XPERIENCE R in the surgical business have been key drivers of revenue growth. Additionally, the company's investment in research and development, including the Canadian Periprosthetic Joint Infection Study, demonstrates its dedication to advancing clinical studies and innovation.

Summary of Next Science's FY23 Performance and Outlook

Next Science's FY23 financial results showcase a remarkable growth trajectory, with record revenue and gross profit indicating the company's strong performance in the wound care and surgical sectors. The strategic priorities outlined for the future, including increasing penetration and productivity of the DME structure, driving higher direct sales of BLASTX R, and expanding the use case of XPERIENCE R, position the company for continued success. With a forecasted revenue of US$36-40 million for FY24 and the expectation to achieve EBITDA and cashflow positivity in the second half of the year, Next Science is poised for further expansion and advancement in its innovative healthcare solutions.