PBX Probiotix Health Plc

23 January 2025

ProBiotix Health plc

("ProBiotix" or the "Company" or, together with its subsidiary, the "Group")

Trading Update

ProBiotix Health plc (AQSE: PBX), the life sciences business developing probiotics to support cardiometabolic health, is pleased to announce a trading update for the financial year ended 31 December 2024.

Key highlights*:

·      Gross revenue of £2m, resulting in net sales +13% to £1.88m (2023: £1.67m)

·      Gross profit +15% to £1m (2023: £872,000) 

·      EBITDA loss from continuing operations of £568,000** (2023: £709,000)

·      Gross Profit margin increased to 53% (2023: 52%)

·      Strong cash balance of £1.65m at year-end

·      Record Q1 2025 order book +47% at £620,000

*   Figures are subject to audit

** Excludes £116,000 exceptional costs relating to the Requisitioned General Meeting

Review of the year

The trading performance for ProBiotix in 2024 proved highly satisfactory, driven by extending our market reach and increasing customer awareness of our products. Sales growth has been good, and, with the benefit of careful cost control and a focus on optimising gross profit through product mix and negotiating lower costs with our manufacturers, we have achieved a 20% improvement in the EBITDA loss from ordinary operations.

We continued to develop our relationship with SEED Health in the US, with an increase in sales volume of 56% on the prior year.  Further upside is expected to be driven by the introduction of our products to 2,000 Target stores across the US late last year. In addition, the successful geographical expansion of Lactobact LDL-control, by Germany based biotechnology company HLH BioPharma, has led to sales rising 95%, due to product growth globally.

Driven by the ongoing consumer movement of healthy ageing, the US remains a major focus for ProBiotix. Last October, we attended (for the first time as a standalone Company) the well regarded dietary supplement tradeshow SupplySide West, in Las Vegas. The feedback was very positive and helped secure over 90 high quality leads, a number of which have now moved forward into the next project phase. To help our sales efforts in Europe, we also exhibited for the first time at the nutraceutical focused Vitafoods tradeshow in Geneva, generating more than 100 leads, of which 15 are now in more detailed discussions.

To drive our future sales, we took an important step to increase the number of active global customers and distributors. During the year we were pleased to welcome: DanCare (China), DeutchPharm (Ukraine and recently extended to Uzbekistan), Eifron (Greece), RAFF (Mexico), and Life Extension and Better Being - both in the USA. The majority of these agreements were signed in H2 2024, with their contribution expected to be more apparent in the current financial year and beyond. To help further drive sales and expand our market presence, we hired a new sales manager towards the end of 2024, with a particular focus on expanding our position in Europe, the Middle East and Africa. This move should yield results in the current year.

ProBiotix has further strengthened its scientific platform through the expansion of our network in the EU by retaining Associate Professors Hiva Alipour and Fereshteh Dardmeh from Aalborg University in Denmark. The University is renowned for its expertise in probiotics and is an internationally recognised faculty within the healthy ageing space. The Professors' expertise further strengthens our continued efforts, to further clinically document existing and new products.

We were also delighted to welcome Denmark based investor and entrepreneur Frederik Bruhn-Petersen as a major shareholder in ProBiotix, through his family office Holdingselskabet af 29. Juni 2010 Aps. His son (of the same name) recently joined the Board as a Non-Executive Director, and with the £1.226m received from the share subscription by Holdingselskabet af 29. Juni 2010 Aps, we are in a strong position to provide working capital for stock and to invest in further sales resource where required.

Outlook for 2025

The current financial year has started strongly with our order book for Q1 2025 up 47% to a record £620,000, fuelled by a number of new customer orders. As part of our ongoing plans to achieve increased sales in our key North American market, we have hired a new US sales executive with an established and significant industry network - he will be onboarded in March 2025. We also hope to secure a new partner in Korea shortly to launch CholBiome_X3® in Q1 2025, as well as several YourBiotix products later this year.

Negotiations continue with a large global ingredients supplier which will involve an initial focus on LP_LDL ingredient sales in mainland China, with the option to further expand in other markets in the region. This collaboration would add a further outlet to the existing cooperation with Dancare in finished products.

Steen Andersen, CEO of ProBiotix, commented: "We are pleased with the progress ProBiotix is making, further underlining our belief in the huge potential for LP_LDL to be used as a potent preventative ingredient in maintaining normal cholesterol and blood pressure. As part of our previously announced '5-year growth strategy', our results for 2024 confirm we remain on track to achieve break-even in late 2025/early 2026.

Our focus for 2025 is to continue to build our business in the US and Europe, while maturing our activities with a view to entering the APAC region next year.

ProBiotix enters the year with a cash strong balance sheet, and, buoyed by the current solid order book and increasing enquiry levels, we view the future with considerable confidence."

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This announcement contains information which, prior to its disclosure, was considered inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

Notes to Editors:

ProBiotix is a life sciences company that develops probiotic formulations to support cardiometabolic health. Since its formation, ProBiotix has become recognised as a global leader in microbiome modulating probiotics for use in food supplements and nutraceuticals.

The Company has a unique approach; discovering ground breaking probiotics, ensuring their benefits through robust science, and bringing to market effective finished probiotic-based products for human health across the globe.