(Alliance News) - OptiBiotix Health PLC shares rose on Tuesday as the firm celebrated a "gradual return to strong sales growth".
Shares in OptiBiotix were up 9.2% at 24.58 pence on Tuesday afternoon in London.
The York, England-based life sciences company said its businesses are now at a strategic inflection point, with its first-generation products gaining widespread acceptance in global markets with large partners.
The company said that it currently has "no debt, a strong balance sheet, and multiple plays in different areas of the emerging microbiome space".
"Whilst global economic conditions temporarily impacted on progress during 2022 with high stock levels, lower retail footfall, and a lack of new product innovation in the industry, the last three quarters of 2023 have seen a gradual return to strong sales growth," OptiBiotix added.
The company's focus from Spring 2023 onwards has been increasing sales through more active management of key accounts; increasing its partners, especially in India and the US; and investing in e-commerce channels.
OptiBiotix said it has made progress in all three of these areas. For example, LeanBiome sales to The Hut Group increased 37% annually in 2023, while Holland & Barrett sales are "up substantially".
LeanBiome is now also used in the global Myprotein and MuscleTech sports nutrition brands. Additionally, OptiBiotix said it is in late-stage discussions with a large pharmaceutical company in India to launch products containing SlimBiome.
OptiBiotix also said that in 2023, e-commerce sales more than tripled from 2022 levels, "driven by strong growth in China of gummies and large increases in Amazon Prime subscriptions". It expects "strong growth" this year as it expands its product ranges, invests more in advertising, and opens more market channels.
"We are pleased to report substantial progress over the last 12 months...We are also pleased to see continued growth of online sales, particularly in China, and are looking to replicate this success in other territories, such as India. These all have the potential to bring in significant future revenues," commented Chief Executive Officer Stephen O'Hara.
"With all parts of the business returning to strong growth and a pipeline of potential multi million pound deals in India and the USA, we are excited about the future."
By Emma Curzon, Alliance News reporter
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OptiBiotix Health (OPTI)