Q4 2026 Biome Australia Ltd Earnings Call

August 3, 2026

Speaker #1: Otherwise, just press pound to continue. You have joined the meeting as an attendee and will be muted throughout the meeting.

Blair Vega Norfolk: First, I'll start off with a little bit of housekeeping. Any questions that haven't already come through via email to our support inbox support@activated.co, you can put in the webinar chat at the bottom and send through, and we'll do our best to get to all the questions once we get through the main parts of the presentation today. Starting off, Lauren will be walking through the 4C, which was released last Wednesday, then I'll be following on with an update on the international market presentation. Following that, we'll get into questions. After a wonderful FY2026, very pleased for Lauren to report Q4.

Speaker #2: Now, but first, I'll start off with a little bit of housekeeping. So, any questions that haven't already come through via email to our support inbox, support@activated.co, you can put in the webinar chat at the bottom and send through, and we'll do our best to get to all the questions once we get through the main parts of the presentation today.

Speaker #2: So, starting off, Lauren will be walking through the 4C, which was released last Wednesday, and then I'll be following on with an update on the international market presentation.

Speaker #2: Following that, we'll get into questions. So, after a wonderful FY26, I'm very pleased for Lauren to report on Q4.

Speaker #3: Thanks, Blair. Good morning, everyone, and thank you for making the time. As Blair said, today I'm walking you through our Q4 and full-year FY26 Appendix 4C, as was released last Wednesday.

Lauren Dwyer: Thanks, Blair. Good morning, everyone, and thank you for making the time. As Blair said, today I'm walking you through our Q4 and full year FY2026 Appendix 4C, as was released last Wednesday. FY2026 was the strongest year in Biome's history on revenue, on cash generation, debt reduction, Q4 capped off the year strong with a number of strategic milestones that set us up to record success in FY2027. Today, I'll cover off briefly on the FY2026 growth story, the cash flow result, the balance sheet, our strategic milestones, then pass back to Blair to speak on international markets before we take time for some investor Q&A. FY2026, a record year. We achieved AUD 23.9 million in annual sales revenue, which was up 30% on FY2025's AUD 18.4 million. It wasn't just attributable to one quarter spike. It was a full-year compounding practitioner-led growth.

Lauren Dwyer: Thanks, Blair. Good morning, everyone, and thank you for making the time. As Blair said, today I'm walking you through our Q4 and full-year FY2026 Appendix 4C, as was released last Wednesday. FY2026 was the strongest year in Biome's history on revenue, on cash generation, debt reduction, Q4 capped off the year strong with a number of strategic milestones that set us up to record success in FY2027. Today, I'll cover off briefly on the FY2026 growth story, the cash flow result, the balance sheet, our strategic milestones, then pass back to Blair to speak on international markets before we take time for some investor Q&A. FY2026, a record year. We achieved AUD 23.9 million in annual sales revenue, which was up 30% on FY2025's AUD 18.4 million. It wasn't just attributable to one quarter spike. It was a full-year compounding practitioner-led growth.

Speaker #3: FY26 was the strongest year in Biome's history. On revenue, cash generation, and debt reduction, Q4 capped off the year strong with a number of strategic milestones that set us up for record success in FY27.

Speaker #3: Today, I'll briefly cover the FY26 growth story, the cash flow result, the balance sheet, our strategic milestones, and then pass back to Blair to speak on international markets before we take time for some investor Q&A.

Speaker #3: FY26 was a record year. We achieved $23.9 million in annual sales revenue, which was up 30% on FY25's $18.4 million. This wasn't just attributable to one quarter's spikes; it was a full-year, compounding, practitioner-led growth.

Speaker #3: In June 2026, it was a landmark month as, for the first time, we achieved consumer sell-through of activated probiotics surpassing 100,000 units for a single month.

Lauren Dwyer: In June 2026, was a landmark month. For the first time, we achieved consumer sell-through of Activated Probiotics, surpassing 100,000 units for the single month. Sell-through represents real product moving off the shelves, not just invoicing or timing convention. Biome Daily is now the number one probiotic product in the Australian pharmacy by both units and dollar value, according to IQVIA Pharmacy Scan sales data for FY2026. It's our flagship product, and it's leading the entire category. It's a great result. Most importantly, the number one title represents a platform, not a peak. This ranking is a gateway for us to grow across the Activated Probiotics and Activated Therapeutics ranges from an already strong base.

Speaker #3: Sell-through represents real product moving off the shelves, not just invoicing or a timing convention. Bio and Daily is now the number one probiotic product in Australian pharmacy by both units and dollar value, according to IQVIA pharmacy scan sales data for FY26.

Speaker #3: That's our flagship product, and it's leading the entire category—a great result. Most importantly, the number one title represents a platform, not a peak.

Speaker #3: This ranking is a gateway for us to grow across the Activated Probiotics and Activated Therapeutics ranges, from an already strong base. The number-one positioning builds directly on the momentum that we signaled in the first half, with FY26’s first-half revenue of $12.4 million, up 40% on the PCP, and with a record EBITDA of $1.47 million.

Lauren Dwyer: The number one positioning builds directly on momentum that we signaled at the H1, with FY26 H1 revenue of AUD 12.4 million, 40% up on the PCP and with a record EBITDA of AUD 1.47 million. Looking ahead to FY27 and beyond, our seasonally highest quarter annually, which is Q1, we have a number of new product development launches scheduled, coupled with key strategic opportunities in international markets. This positions Biome for what we expect to be our highest revenue-generating half in the company's history. Our cash flow can be described as disciplined, growing, and self-funding. Q4 cash receipts from customers was AUD 5.9 million at Q4, up AUD 1.1 million on Q3, and a staggering 61% or AUD 2.2 million on the prior corresponding period.

Lauren Dwyer: The number one positioning builds directly on momentum that we signaled at the H1, with FY26 H1 revenue of AUD 12.4 million, 40% up on the PCP and with a record EBITDA of AUD 1.47 million. Looking ahead to FY2027 and beyond, our seasonally highest quarter annually, which is Q1, we have a number of new product development launches scheduled, coupled with key strategic opportunities in international markets. This positions Biome for what we expect to be our highest revenue-generating half in the company's history. Our cash flow can be described as disciplined, growing, and self-funding. Q4 cash receipts from customers was AUD 5.9 million at Q4, up AUD 1.1 million on Q3, and a staggering 61% or AUD 2.2 million on the prior corresponding period.

Speaker #3: Looking ahead to FY27 and beyond, our seasonally highest quarter annually, which is Q1, we have a number of new product development launches scheduled, coupled with key strategic opportunities and international markets.

Speaker #3: This positions Bio for what we expect to be our highest revenue-generating half in the company's history. Our cash flow can be described as disciplined, growing, and self-funding.

Speaker #3: Q4 cash receipts from customers were $5.9 million, up $1.1 million on Q3, and a staggering 61%, or $2.2 million, on the prior corresponding period.

Speaker #3: A net operating cash inflow of $708,000 was reported for the quarter, which was a swing of nearly $2 million compared to the Q3 cash outflow, and a $1.2 million positive turnaround on PCP.

Lauren Dwyer: A net operating cash inflow of AUD 708,000 was reported for the quarter, which was a swing of nearly AUD 2 million compared to the Q3 cash outflow and AUD 1.2 million up positive turnaround on PCP. For the full year end of 30 June, we reported a net operating cash inflow of AUD 1.6 million versus FY25, which was an operating cash outflow of AUD 1.4 million. We are continuing to demonstrate now that Biome is a business that generates cash from its operations while still investing heavily in growth and expansion. We did this while deliberately holding safety stocks ahead of our seasonally biggest quarter, as I mentioned, and navigating global freight uncertainty and volatility. This growth was delivered by real working capital discipline, not growth funded by drawing down the balance sheet.

Speaker #3: For the full year ended 30 June, we reported a net operating cash inflow of $1.6 million, versus FY25, which was an operating cash outflow of $1.4 million. We're continuing to demonstrate now that Bio is a business that generates cash from its operations while still investing heavily in growth and expansion.

Speaker #3: We did this while deliberately holding safety stocks ahead of our seasonally biggest quarter, as I mentioned, and navigating global freight uncertainty and volatility. This growth is delivered by real working capital discipline, not growth funded by running down the balance sheet.

Speaker #3: Marketing and investment stayed efficient at approximately 7.5% of FY26 sales, and we're proving that the model scales without ballooning advertising or promotional costs. Moving on to our balance sheet, it's evidently much stronger and more flexible.

Lauren Dwyer: Marketing investments stayed efficient at approximately 7.5% of FY26 sales, and we are proving that the model scales without ballooning advertising or promotional costs. Our balance sheet. It is evidently more stronger and flexible. Biome is reducing debt, building cash, and self-financing for the next phase, including onshore manufacturing the transition, and importantly, without needing to lean on shareholders or take on more debt. Our cash balance as at 30 June was reported at AUD 3.6 million, which is an increment of AUD 0.2 million on Q3 and AUD 0.8 million on PCP. Importantly, our debt reduced by AUD 1 million year on year to just AUD 1.9 million drawn at 30 June against total NAV facility available of AUD 5 million. That leaves AUD 3.1 million of undrawn facility headroom and AUD 6.65 million of total funding available heading into FY27. Our strategic milestones set us up for FY27.

Speaker #3: Bio is reducing debt, building cash, and self-financing for the next phase, including onshore manufacturing and the transition. Importantly, this is being done without needing to lean on shareholders or take on more debt.

Speaker #3: Our cash balance, as at 30 June, was reported at $3.6 million, which is an increment of $0.2 million on Q3 and $0.8 million on PCP.

Speaker #3: Importantly, our debt reduced by $1 million year on year to just $1.9 million drawn at 30 June, against a total NAB facility available of $5 million.

Speaker #3: That leaves $3.1 million of undrawn facility headroom and $6.65 million of total funding available heading into FY27. Our strategic milestones set us up for FY27.

Speaker #3: So, in Q4, we entered a binding manufacturing agreement with Specialty Probiotics Australia, or SPA, for onshore production of activated probiotics. Importantly, zero capital investment was required from Biome.

Lauren Dwyer: In Q4, we entered a binding manufacturing agreement with Specialty Probiotics Australia, SPA, for onshore production of Activated Probiotics, including zero capital investment required from Biome. Our first commercial batch is targeted for September 2026. This is expected to structurally improve the cost of goods sold, freeing up working capital and cutting our inventory and freight lead times, and adding the Australian-made edge in our export markets while we keep our European partnerships for EU supply distribution diversification. The market has already recognized the significance of this. Biome shares rose 20% on the day the FDA agreement was announced in June. Separately, BMB18, our first wholly proprietary probiotic strain, the patent application was lodged during the quarter end of Q4, and the clinical trial is now expanded internationally to the University of Athens, alongside La Trobe University in Melbourne.

Speaker #3: Our first commercial batch was targeted for September 2026. This is expected to structurally improve the cost of goods sold, freeing up working capital and cutting out inventory and freight lead times.

Speaker #3: And adding the Australian-made edge in our export markets, while we keep our European partnerships for EU supply distribution diversification. The market has already recognized the significance of this.

Speaker #3: BioM shares rose 20% on the day the SPA agreement was announced in June. Separately, BMB18, our first wholly proprietary probiotic strain, had its patent application launched during the quarter ended Q4, and the clinical trials have now expanded internationally to the University of Athens alongside La Trobe University in Melbourne.

Speaker #3: This represents a genuine pipeline asset, building long-term IP value for Bio. Looking ahead, the first half of FY27 is expected to be BioM's highest revenue-generating half on record, supported by new product launches and continued international momentum.

Lauren Dwyer: This represents a genuine pipeline asset building long-term IP value for Biome. Looking ahead, H1 FY27 is expected to be Biome's highest revenue-generating half on record, supported by new product launches and continued international momentum. To sum up, FY26 closed with record revenue, record sell-through, a number one pharmacy product with genuine positives and improving operating cash flow, a stronger balance sheet, reduced debt, and two major strategic wins, onshore manufacturing and BMB18, both of which position us perfectly as we head into FY27. I look forward to presenting the full year FY26 financial metrics following the release of the Appendix 4E preliminary final report at the end of August. Thank you. I'll pass back to Blair.

Speaker #3: To sum up, FY26 closed with record revenue, record sell-through, a number one pharmacy product in genuine positives, and improving operating cash flow, a stronger balance sheet, reduced debt, and two major strategic wins.

Speaker #3: Onshore manufacturing and BMB18—both of which position us perfectly as we head into FY27. I look forward to presenting the full-year FY26 financial metrics following the release of the Appendix 4E preliminary final report at the end of August.

Speaker #3: Thank you. Pass that to Blair.

Speaker #1: Thank you, Lauren. That's incredible to hear, as if I were a spectator. What an amazing year we achieved in FY26, and I think we can often get caught up in the short-term details of what's going on in the world, but it seems a long time ago when we started this financial year. To see what we've been through with major projects and Vision 27 milestones just being ticked off is incredibly exciting in my chair.

Blair Vega Norfolk: Thank you, Lauren. That's incredible to hear, as if I was a spectator. What an amazing year we achieved in FY26, and I think we can often get caught up in the short-term details of what's going on in the world. It seems a long time ago when we started this financial year, and to see what we've been through, with major projects and Vision 2027 milestones that's being ticked off is incredibly exciting in my chair, and very proud of what the team have achieved. As we get into the international markets, I will get a presentation up on the screen and share. I wanted to reflect on a couple of things. Certainly, that IQVIA scan data that Lauren shared.

Speaker #1: And very, very proud of what the team have achieved. So, as we get into the international markets, I will get a presentation up on the screen and share.

Speaker #1: But I wanted to reflect on a couple of things. Certainly that our QBS scan data that Lauren shared. So, the fact that BioM's activated probiotics BioM Daily is now got the number one position in pharmacy is incredible, and it will allow us to really leverage and continue to grow, taking more market share, but also continuing to grow the category, which is something that BioM has really built in as a fundamental to its business model, not just competing with the market, but growing that market.

Blair Vega Norfolk: The fact that Biome's Activated Probiotics, Biome Daily, has now got the number one position in pharmacy is incredible, and it will allow us to really leverage and continue to grow, taking more market share but also continuing to grow the category, which is something that Biome has really built in as a fundamental to its business model, not just competing with the market, but growing that market. Within the international markets, I note that we pulled out a 68% gross margin, which is still under audit, but 7 points higher than the Australian business, which is a significant value add and reason for us to continue to pursue our strategy in those markets. If you just bear with me for 1 moment as I share my screen and get the presentation up for you all. Okay. The high-level points on the international market performance for FY26.

Speaker #1: Within the international markets, I note that we pulled out a 68% gross margin, which is still under audit, but 7 points higher than the Australian business. This is a significant value add and a reason for us to continue to pursue our strategy in those markets.

Speaker #1: So, if you just bear with me for one moment as I share my screen and get the presentation up for you all. Okay. So, the high-level points on the international market performance for FY26.

Speaker #1: So, as you'll—I'm sure you've already read the announcement—$1.8 million revenue, up 26% on FY25. It's important to note, while this is still a smaller base compared to the Australian operating company, we've done this on a shoestring budget.

Blair Vega Norfolk: I'm sure you've all read the announcement. AUD 1.8 million revenue, up 26% on FY25. It's important to know while this is still a smaller base compared to the Australian operating company, we've done this on a shoestring budget, wanting to always prove and test markets before we invest majorly. We've been running it near a breakeven and expect to be able to continue to run it very lean while FY27 will be a marquee year for international markets and expect to be getting more color on that as the financial year evolves. We now have more than 2,000 distribution points, which is very meaningful. It's a base that we've built, to build that, you don't just walk in day one and get them.

Speaker #1: So, wanting to always prove and test markets before we invest majorly, we've been running it near break-even, and expect to be able to continue to run it very lean, while FY27 will be a marquee year for international markets. We expect to be getting more color on that as the financial year evolves.

Speaker #1: We now have more than 2,000 distribution points, which is very meaningful. It's a base that we've built, and to build that, you don't just walk in on day one and get them.

Speaker #1: So, there's a significant amount of work that goes into, firstly, the regulatory sign-off—making sure the packaging and the marketing is compliant for each of those four local markets.

Blair Vega Norfolk: There's a significant amount of work that goes into, firstly, the regulatory sign-off, making sure the packaging and the marketing is compliant for each of those four local markets in Canada, Ireland, UK, and New Zealand. Doing deals with the distributors. I note the start of the financial, we released two major deals, one with Uniphar in Ireland, which was wholesale and retail pharmacy, also ProPharma in New Zealand. Later on in the financial year, we released that we'd launch with Fullscript in Canada, in North America. That foundation, that base, has now built 2,000 distribution points, and in FY27, we will be developing further. In the Australian model, we now have announced we have more than 7,500 distribution points between pharmacy, health food, and the practitioner market. What we're trying to demonstrate is how that model compounds.

Speaker #1: In Canada, Ireland, the UK, and New Zealand, we are doing deals with the distributors. I note that at the start of the financial year, we released two major deals: one with Unifa in Ireland, which was with wholesale and retail pharmacy; also Profarm in New Zealand. Later on in the financial year, we released and launched with Fullscript in Canada in North America.

Speaker #1: So, that foundation, that base, is now built—2,000 distribution points in FY27. We will be developing further. So, in the Australian model, we now have announced we have more than 7,500 distribution points between pharmacy, health, food, and the practitioner market.

Speaker #1: So, what we're trying to demonstrate is how that model compounds. If you look back from FY22 to FY23, we're sitting at 1,200 to 2,600 distribution points.

Blair Vega Norfolk: If you look back to FY22 to FY23, we're sitting at 1,200 to 2,600 distribution points. That should give a bit of guidance on how we expect to be able to continue to grow and build this business. Most importantly, in the Australian business, the underlying growth is coming from, as Lauren shared, the same-store sales and sell-through. It isn't deals, it isn't launching new products, as is often seen in the VMS market. It's the underlying sales and growth and development and business development that we're doing, which Biome has become an expert on. Now being able to leverage the Australian success and the number one Australian product, the number one kids product in the probiotic market, the number one immune health product in the probiotic market. For those that aren't aware, immune health drives the entire category.

Speaker #1: So, that should give a bit of guidance on how we expect to be able to continue to grow and build this business. Most importantly, in the Australian business, the underlying growth is coming from, as Lauren shared, the same-store sales and sell-through.

Speaker #1: It isn't deals, it isn't launching new products as is often seen in the BMS market. It's the underlying sales and growth, and development and business development that we're doing, which BioM has become an expert on.

Speaker #1: Now, being able to leverage the product—the number one kids' product in the probiotic market, the number one immune health product in the probiotic market—for those that aren't aware, immune health drives the entire category.

Speaker #1: These are really important flagship statements that we're going to be able to carry into the international markets in FY27. The four active markets that we are working in now are all very different and require a different approach.

Blair Vega Norfolk: These are really important flagship statements that we're going to be able to carry into the international markets in FY27. The four active markets that we are working in now are all very different and require a different approach. The one thing that's consistent across all markets is we're running a very lean sales and education-led model. In Canada, we have three staff on the ground who are sales and education staff working in pharmacy, in practitioner clinics, and health food stores every day, detailing, building trust, and getting that active recommendation that Biome has been able to establish as its foundation for growth and support of its brand in all markets.

Speaker #1: But one thing that's consistent across all markets is we're running a very lean sales- and education-led model. So, in Canada, we have three staff on the ground who are sales and education staff, working in pharmacy, in practitioner clinics, and health food stores every day.

Speaker #1: Detailing, building trust, and gaining that active recommendation are what BioM has been able to establish as its foundation for growth and support of its brand in all markets.

Speaker #1: Within the United Kingdom, we have a mix of a territory team calling on pharmacies, which is more of the traditional sales model, and then a practitioner sales and education team that are out there calling on practitioners, developing their clinics.

Blair Vega Norfolk: Within the United Kingdom, we have a mix of a territory team calling on pharmacies, which is more the traditional sales model, and then a practitioner sales and education team that are out there calling on practitioners developing their clinics. Ireland, most similar to the Australian market, community pharmacy and practitioners. We have three practitioner education consultants. Again, a mix of sales and education out there detailing practitioners and pharmacists and developing that core business. New Zealand, which is very similar to the Australian model as well. We are working in pharmacy and practitioners with two reps on the ground every day, detailing stores and developing the business. I've done a bit of a high-level summary of each market, the channels that we're working through.

Speaker #1: Ireland, most similar to the Australian market—community pharmacy and practitioners. We have three practitioner education consultants, again a mix of sales and education, out there detailing practitioners and pharmacists, and developing that core business.

Speaker #1: And then New Zealand, which is very similar to the Australian model as well. We are working in pharmacy and practitioner, with two reps on the ground every day, detailing stores and developing the business.

Speaker #1: So, we've done a bit of a high-level summary of each market and the channels that we're working through. I'm not going to go through these slides one by one, but absolutely, if anyone has any questions, I'm happy to get into it.

Blair Vega Norfolk: I'm not going to go through these slides one by one, but absolutely, if anyone has any questions, happy to get into it. If I can, I will absolutely answer in as much detail as we can. What I will say is Canada and Ireland are absolutely, at this point, the crown jewels that we're seeing the most growth, the most positive acceptance of the brand, and the level of engagement that we're getting from the practitioner community in those markets really only rivals the Australian market, and it's really pointing toward successful development long term. Okay, I'm going to click through toward the end of this. This is something that I found very interesting that we wanted to share for the first time with investors. What's driving that high gross margin?

Speaker #1: And if I can, I will absolutely answer in as much detail as we can. But what I will say is, Canada and Ireland are absolutely, at this point, the crown jewels. We're seeing the most growth, the most positive acceptance of the brand, and the level of engagement that we're getting from the practitioner community in those markets really only rivals the Australian market. It's really pointing toward successful development long-term.

Speaker #1: Okay, I'm going to click through toward the end of this. This is something that I found very interesting that we wanted to share for the first time with investors.

Speaker #1: So, what's driving that higher gross margin? In the Australian market, we have a retail price for BioM Daily. BioM Daily Kids and BioM Baby are entry-level products at $3,495.

Blair Vega Norfolk: In the Australian market, we have a retail price for Biome Daily, Biome Daily Kids, and Biome Baby, our entry-level products at AUD 34.95. We have not increased the price on those products since 2019, unlike other competitors in the market who review every year or 2 and put constant price rises. We think it's a strategic advantage that we've been able to maintain this in the Australian market, but also overseas, we're able to reset our pricing and take advantage of being, I suppose, a newer entry brand into that market and test out different pricing strategies as well. Most of you will be aware that we employ a no discount policy in Australia, which we also have taken abroad. This is something that's never been done before in our category. It is harder, the initial conversations with retailers.

Speaker #1: We have not increased the price on those products since 2019, unlike other competitors in the market who review every year or two and implement constant price rises.

Speaker #1: We think it's a strategic advantage that we've been able to maintain this in the Australian market, but also, overseas we're able to reset our pricing and take advantage of being, I suppose, a newer entry brand into that market, and test out different pricing strategies as well.

Speaker #1: Most of you will be aware that we employ a no-discount policy in Australia, which we have also taken abroad. This is something that's never been done before in our category.

Speaker #1: It is harder, the initial conversations with retailers; however, sticking to our guns has enabled us to maintain our margin, but also given us additional credibility and trust to be able to grow as a solutions-driven brand.

Blair Vega Norfolk: However, sticking to our guns has been able to maintain our margin, but also give us additional credibility and trust to be able to grow as a solutions-driven brand rather than just a product and a price. If you go through the different channels, we've kept it in local currency, but you can see Canada, CAD 46.99. Canadian dollar and the AUD is usually within about 10% difference. Right now, it's pretty similar, so there's significant extra gross margin in the Canadian business. The UK, GBP 29.95. They're quite expensive. The UK and Ireland are our two most expensive retail prices that contribute the most significant per unit to our gross margin. New Zealand is weighted off the Australian market, just covering off some risk and currency transfer. Across the board, it's given Biome an opportunity to test out different models.

Speaker #1: Rather than just a product and a price, if you go through the different channels, we've kept it in local currency. But you can see Canada—$4,699 Canadian dollars—and the AUD is usually within about a 10% difference.

Speaker #1: Right now, it's pretty similar. So, there's significant extra gross margin in the Canadian business. The UK—$2,995. So, quite expensive. The UK and Ireland are our two most expensive retail prices.

Speaker #1: They contribute the most significant per unit to our gross margin. And then New Zealand is weighted off the Australian market, just covering off some risk and currency transfer.

Speaker #1: So, across the board, it's given BioM an opportunity to test out different models, the Canadian model, and we are like-for-like with competitors.

Blair Vega Norfolk: The Canadian model, we are like for like with competitors, whereas in the UK and Ireland, we've tested a slightly higher, more premium pricing strategy where we are a bit more expensive than competitors in the market. Still, no pushback or complaint at pricing, which is very positive for Biome. Another key thing I really wanted to highlight in this presentation was the Northern Irish hub and advantage that Biome has. After a huge amount of work over the last 2 or 3 years, we've identified a hub in Northern Ireland to be able to supply tariff-free to the United Kingdom, Ireland, and mainland Europe. I suppose Brexit created a lot of challenges for European companies, but also opportunities as well. With our partner, TDS, in Northern Ireland, we are now supplying the United Kingdom and Ireland, and mainland Europe to a lesser extent.

Speaker #1: Whereas in the UK and Ireland, we've tested a slightly higher, more premium pricing strategy, where we are a bit more expensive than competitors in the market.

Speaker #1: But still, no pushback or complaint on pricing, which is very positive for BioM. Another key thing I really wanted to highlight in this presentation was the Northern Irish hub and the advantage that BioM has.

Speaker #1: So, after a huge amount of work over the last two or three years, we've identified a hub in Northern Ireland to be able to supply tariff-free to the United Kingdom, Ireland, and mainland Europe.

Speaker #1: I suppose Brexit created a lot of challenges for European companies, but also opportunities as well. So, with our partner TDS in Northern Ireland, we are now supplying the United Kingdom and Ireland, and mainland Europe to a lesser extent.

Speaker #1: And as we move ahead with this B2B2C e-commerce platform, where we'll be delivering e-scripts, this is one of the first times we've mentioned, or the first time to announce that officially. That will be tested in the UK starting this quarter.

Blair Vega Norfolk: As we move ahead with this B2B2C e-commerce platform, where we'll be delivering e-scripts, this is one of the first times we've mentioned or the first time to announce that officially. That will be tested in the UK starting this quarter. That's going to give us the ability to really switch on a new digital health play, and using this hub in Northern Ireland will allow that to function very smoothly. Lauren already mentioned the onshore manufacturing with SPA or Specialty Probiotics Australia. With the international markets, this is also very material, and key points as well. It's going to allow smaller batches, higher turnover in products, and being able to really move quickly on any new products or opportunities to get them into the markets faster.

Speaker #1: And that's going to give us the ability to really switch on a new digital health play, and using this hub in Northern Ireland will allow that to function very smoothly.

Speaker #1: Lauren already mentioned the onshore manufacturing with SPG, or Specialty Probiotics Group, Australia. With the international markets, this is also very material and a key point as well.

Speaker #1: It's going to allow smaller batches, higher turnover in products, and the ability to really move quickly on any new products or opportunities, getting them into the markets faster.

Speaker #1: Previously, our large-batch European manufacturers weren't able to help us with small tests. But now, with our local Australian partner, we'll be able to run smaller batches, different packages, and get things to market faster.

Blair Vega Norfolk: Previously, our large batch European manufacturers weren't able to help us with small tests. Now with our local Australian partner, we'll be able to run smaller batches, different packages, and be able to get things to market faster, and also saving on our cost of goods as well in each market. I've already mentioned the practitioner and the gross margin teams. Priorities for FY27 before we hand over for some questions on the 4C and the international markets. This is the year where we expect to have a step change. We had a fantastic start in our first full financial year in FY26 in Canada. Same thing in Ireland, a great first full financial year where we've now got some deeply entrenched product and trust within the pharmacy market in Ireland.

Speaker #1: And also saving on our cost of goods as well in each market. I have already mentioned the practitioner and the gross margin teams. So, priorities for FY27, before we hand over for some questions on the 4C and the international markets.

Speaker #1: This is the year where we expect to have a step change. We had a fantastic start in our first full financial year in FY26 in Canada.

Speaker #1: Same thing in Ireland—a great first full financial year, where we've now got some deeply entrenched product and trust within the pharmacy market in Ireland.

Speaker #1: We're continuing on our development journey in the UK. That has really highlighted the UK as the best opportunity for BioM to have its hub for the Northern Hemisphere.

Blair Vega Norfolk: We continue on our development journey in the UK, that have really highlighted the UK as the best opportunity for Biome to have its hub for the northern hemisphere, with a strong management team there already operating for three years, being able to support us when we are asleep. We are looking constantly at new markets as well, and I want to be really clear, we won't be taking on anything new because we need to make sure that we've got the right capacity internally. However, with other key markets like China and the USA, we're continuing to look for partners on the ground where we could open up Activated Probiotics into the future without needing to invest locally with our own money. We are looking at other markets in Southeast Asia, China, and the USA as we always review.

Speaker #1: With a strong management team there already, operating for three years and being able to support us when we are asleep, we are also constantly looking at new markets as well.

Speaker #1: And I want to be really clear: we won't be taking on anything new, because we need to make sure that we've got the right capacity internally.

Speaker #1: However, with other key markets like China and the USA, we're continuing to look for partners on the ground where we could open up Activated Probiotics in the future, without needing to invest locally with our own money.

Speaker #1: So, we are looking at other markets in Southeast Asia, China, and the USA, as we always review. However, we feel we have the perfect amount of challenges and opportunities in front of us to manage with the internal team at BioM in Melbourne.

Blair Vega Norfolk: However, we feel we have the perfect amount of challenges and opportunities in front of us to manage with the internal team at Biome in Melbourne. Okay. Happy to hand over to some questions. Lauren, have you got any on the 4C to kick us off?

Speaker #1: Okay.

Speaker #2: Happy to hand over to some questions. Lauren, have you got any on the Q4 to kick us off?

Speaker #3: A lot of questions coming through on the international markets. So, perhaps none as yet on the 4C.

Lauren Dwyer: A lot of questions coming through on international markets. None such yet on the 4C.

Speaker #2: Okay.

Blair Vega Norfolk: Okay.

Speaker #3: Yeah. Perhaps start with the first one—international gross margin.

Lauren Dwyer: Yeah. Perhaps first on international gross margin.

Speaker #2: You can handle that one.

Blair Vega Norfolk: You can handle that one?

Speaker #3: Sure. How is it calculated? Does the OPEX line carry a probiotic share of group overhead, or only direct attributable international costs? If direct only, what would the fully loaded margin look like?

Lauren Dwyer: Sure. How is it calculated? Does the OpEx line carry a pro-rata share of group overhead or only direct attributable international costs? If direct only, what would the fully loaded margin look like? Blair, in the presentation, has touched on our international markets sit at consolidated 68%. That gross margin is literally sales revenue net of cost of goods sold. Those are fully loaded COGS costs for the actual, the manufacturing and landed costs of the product in each jurisdiction, and with reference to the actual dollar value sales in each particular region. It does include all of the directly attributable international costs. Obviously, Blair's touched on the workforce, the number of employees that we have in sales satellite roles, but also direct international costs such as printing, marketing, other on costs specific to each region.

Speaker #3: So, Blair and the presentation have touched on our international markets, consolidated at 68%. So, that gross margin is literally sales revenue, net of cost of goods sold.

Speaker #3: So, those are fully loaded COGS costs for the actual manufacturing and landed costs of the product in each jurisdiction, and with reference to the actual dollar value sales in each particular region.

Speaker #3: It does include all of the directly attributable international costs. Obviously, Blair's touched on the workforce—the number of employees that we have in sales satellite roles—but also direct international costs such as printing, marketing, and other on-costs specific to each region.

Speaker #2: Where there’s an exciting opportunity for BioM as well, as we get through FY27, is starting to look at the Australian business and the international business.

Blair Vega Norfolk: Where there's an exciting opportunity for Biome as well as we get through FY27 is starting to look at the Australian business and the international business. This is the first time that we've started to pull it out and be able to look at what we can deliver in each business unit as a standalone as well, and also down the line, start to run some analysis on pulling out the international business and looking at the Australian business as a whole and showing how much even stronger that business unit will report. I think that's a very fair question. We wanted to make sure that we can give a little bit more color on why it's such an exciting proposition for us. The gross margin piece is definitely part of it.

Speaker #2: And this is the first time that we've started to pull it out and be able to look at what we can deliver in each business unit as a standalone as well.

Speaker #2: And also, down the line, start to run some analysis on pulling out the international business and looking at the Australian business as a whole, and showing how much even stronger that business unit will report.

Speaker #2: So, I think that’s a very fair question. We wanted to make sure that we could give a little bit more colour on why it’s such an exciting proposition for us.

Speaker #2: The gross margin piece is definitely part of it.

Speaker #3: A few longer-term questions on international sales: beyond FY27, and at the end of the decade.

Lauren Dwyer: Few longer term questions on international sales beyond FY27 and at the end of the decade.

Speaker #2: Yeah, so, do you have a sense of what proportion of international sales will comprise total sales? So, yes, good question. So, look, we have a goal.

Blair Vega Norfolk: Yeah. Do you have a sense of what proportion of international sales will comprise total sales? Yes, good question. Look, we have a goal. The goal is for international sales to be a larger percentage than it is today. We haven't given an official forecast. However, my expectation is that international is more than 10% sooner than later. We need it to be a material driver. I suppose to that, there was another question in there I've just pulled out around international growth, and is it accelerated or slowing? It's very different to the Australian business, where we have 50 staff on the ground, 15 or 20 of them out in pharmacies every day developing the business. With our de-risk approach, where we are building trust, building relationships, it's not just about hitting the ground and generating the most revenue we can immediately.

Speaker #2: The goal is for international sales to be a larger percentage than they are today. We haven't given an official forecast. However, my expectation is that international will be more than 10% sooner rather than later.

Speaker #2: We need it to be a material driver. And I suppose, to that, there was another question in there. I've just pulled out the one around international growth.

Speaker #2: And is it accelerating or slowing? It's very different to the Australian business, where we have 50 staff on the ground—15 or 20 of them out in pharmacies every day developing the business.

Speaker #2: So, with our de-risk approach, where we are building trust and building relationships, it's not just about hitting the ground and generating the most revenue we can immediately.

Speaker #2: It's about doing it in a measured way that's consistent and allows us to de-risk the business and scale. So, my expectation is that growth will increase.

Blair Vega Norfolk: It's about doing it in a measured way that's consistent, that allows us to de-risk the business and scale. My expectation is that growth will increase, and we'll be really pleased to report that throughout FY27. We're certainly not in a position where growth is slowing in international markets. It's a process of set up, and being it's the earlier stage, it's going to be a lot lumpier.

Speaker #2: And we'll be really pleased to report that throughout FY27. So, we're certainly not in a position where growth is slowing in international markets. It's a process of setup.

Speaker #2: And being at its earliest stage, it's going to be a lot lumpier.

Speaker #3: We've had a somewhat related question come through. So, is the gross just a rising tide, or are you genuinely taking market share?

Lauren Dwyer: We've had a somewhat related question come through. Is the growth just a rising tide, or are you genuinely taking market share?

Speaker #2: So, is that related to Australia or international?

Blair Vega Norfolk: Is that related to Australia or international?

Speaker #3: I think that's more from an Australian perspective.

Lauren Dwyer: I think that's more from an Australia perspective.

Blair Vega Norfolk: Okay.

Speaker #2: Okay.

Lauren Dwyer: Yeah. Sure. It's definitely share gains, not just a rising tide. Certainly independent pharmacy scan data, as we know, shows Activated Probiotics. The range grew approximately 30%, and we know that the growth is broad-based. It's not just against one competitor. I guess, and a really interesting metric in the IQVIA data for 12 months, we saw 46% of the total growth observed against the entire category. We're showing that we're, I guess, outgrowing both market share and competitors.

Speaker #3: Yeah, sure. Sorry. I mean, it's definitely share gains, not just a rising tide. So, certainly, independent pharmacy scan data, as we know, shows activated probiotics.

Speaker #3: The range grew approximately 30%. And we know that the growth is broad-based—it's not just against one competitor. I guess a really interesting metric in the IQVIA data for 12 months was that the growth in the total, entire category was—or we saw—46% of the total growth observed against the entire category.

Speaker #3: So, we're showing that, I guess, we're outgrowing both market share and competitors.

Speaker #2: Yeah, I guess fundamentally, Activated Probiotics has always been set without much competition. So, the strategy has always been to grow the entire probiotic market.

Blair Vega Norfolk: Yeah, I guess fundamentally, Activated Probiotics has always been set without much competition, the strategy has always been to grow the entire probiotic market. In taking shelf space as well, we are taking market share as well. It is absolutely a combination of the two. There's a question around price premium. I think I did touch on that briefly, but maybe I can expand slightly. In the Australian market, I'd estimate we run about a 10% price premium to competitors, maybe 15% where they have promotional strategies, and we maintain our premium price positioning or premium affordable price positioning. The New Zealand market, pretty similar. The Canadian market, I would say also pretty similar. It's only where I mentioned the UK and Ireland, where we have a more premium price point, where we may be 30% or 40% more expensive.

Speaker #2: But in taking shelf space as well, we are taking market share as well. So, it is absolutely a combination of the two. There's a question around price and premium.

Speaker #2: I think I did touch on that briefly, but maybe I can expand slightly. In the Australian market, I'd estimate we run about a 10% price premium to competitors—maybe 15% where they have promotional strategies and we maintain our premium price positioning, or premium affordable price positioning.

Speaker #2: The New Zealand market is pretty similar. The Canadian market, I would say, is also pretty similar. It's only where I mentioned the UK and Ireland, where we have a more premium price point and may be 30% or 40% more expensive.

Speaker #2: However, what's really unique about those two markets is that 'practitioner only' didn't exist in Ireland or the UK. So, we are a first mover, and we are capturing that premium, solution-led market.

Blair Vega Norfolk: However, what's really unique about those two markets is practitioner-only didn't exist in Ireland or the UK. We are first mover, and we are capturing that premium solution-led market. Unlike in Canada and Australia and New Zealand, where it already exists, we've come in and now as the leader, it's a different strategy. We believe a different price strategy is appropriate in the UK and Ireland. Any more questions? Vision 2027 targets. Really happy to address that. Top line, I think this was something that came through before the meeting as well. Yes, to hit our Vision 2027 target will be AUD 32 million plus this financial year. We have reaffirmed we're on track. Take that as you need to. We expect to achieve our Vision 2027 target. That's the board's position, and we know that means growth will accelerate in FY27, as per our expectations.

Speaker #2: Unlike in Canada, Australia, and New Zealand, where it already exists, we've come in and are now the leader. It's a different strategy, so we believe a different price strategy is appropriate in the UK and Ireland.

Speaker #2: Any more questions? Vision '27 targets—really happy to address that. So, top line, I think this was something that came through before the meeting as well.

Speaker #2: So yes, to hit our Vision 27 target, we'll be at $32 million-plus this financial year. We have reaffirmed we're on track, so take that as you need to.

Speaker #2: We expect to achieve our Vision 27 target—that's the board's position. And we know that means growth will accelerate in FY27, as per our expectations.

Speaker #2: So, you're hearing that from me. I think that's about it. I suppose, to add a little bit of colour to my last statement, there are a number of activities that we're working on which will contribute, including new product launches in FY27 that we haven't announced yet.

Blair Vega Norfolk: You're hearing that from me. I think that's about it. I suppose to add a little bit of color to my last statement, there are a number of activities that we're working on which will contribute, including new product launches in FY27 that we haven't announced yet. Look forward to those announcements if and when we are ready to make them, but they will be quite material, as well as other projects that we're working on, both domestically and international, that will flow through in FY27. Frankly, I'm very excited, quite energized for this financial year, and this has been a great opportunity to give everyone a bit of an update, and hear a fantastic presentation from Lauren on the 4C. If we don't have anything else, I think we're probably good to wrap up. Any last-minute questions anyone wants to stick in the Q&A?

Speaker #2: So, look forward to those announcements if and when we are ready to make them. But they will be quite material, as well as other projects that we're working on, both domestically and internationally, that will flow through in FY27.

Speaker #2: So, frankly, I'm very excited and quite energised for this financial year. This has been a great opportunity to give everyone a bit of an update and hear a fantastic presentation from Lauren on the Q4C.

Speaker #2: If we don't have anything else, I think we're probably good to wrap up. Any last-minute questions anyone wants to stick in the Q&A? There's one more here, actually.

Blair Vega Norfolk: There's one more here, actually, I think we did miss. Sorry. You mentioned that each jurisdiction operates differently. Which one that you're currently in do you believe is most favorable for quick growth for Biome? What other countries operate the same, which you could easily enter and get good traction? I think I partially answered that, but let me reframe. Canada has absolutely been the best performing new product launch or new market launch for Biome. I need to be a bit careful because we haven't released numbers by individual region or jurisdiction. What we're seeing in Canada is a very sophisticated market of naturopathic doctors. Similar to the Australian market, we have a highly credentialed naturopath, but they're a naturopathic doctor. In Canada, they've been through an 8-year medical degree.

Speaker #2: I think we did miss—sorry. You mentioned that each jurisdiction operates differently. Which one that you're currently in do you believe is most favourable for quick growth for Biome?

Speaker #2: And then, what other countries operate the same way, which you could easily enter and get good traction? I think I’ve partially answered that, but let me reframe.

Speaker #2: So, Canada has absolutely been the best-performing new product launch or new market launch for Biome. I need to be a bit careful because we haven't released numbers by individual region or jurisdiction.

Speaker #2: What we're seeing in Canada is a very sophisticated market of naturopathic doctors. So, similar to the Australian market, we have a highly credentialed naturopath, but they're a naturopathic doctor.

Speaker #2: In Canada, they've been through an eight-year medical degree. They have super clinics, similar to the super clinic GP model in Australia. And they're very active in recommending products like Activated Probiotics, a professional offering in their dispensaries and clinics.

Blair Vega Norfolk: They have super clinics similar to the super clinic GP model in Australia, and they're very active in recommending products like Activated Probiotics, a professional offering in their dispensaries in clinic. The pharmacy model also resembles the Australian market with very strong community pharmacy base. There is one group that we work with now in Vancouver called Pure Integrative Pharmacy. That's an entire store just of professional products with no gimmicky retail products either. Very solution-driven, profit-driven. Our price model has also really supported each of these markets in being able to provide a way to make more money in a tough market as well, and that's something that Biome offers everyone in every one of our markets, more profit per unit and more profit per square meter. I'd be happy to go on record saying Canada is absolutely the best success story.

Speaker #2: The pharmacy model also resembles the Australian market, with a very strong community pharmacy base. There is one group that we work with now in Vancouver called Pure Integrated Pharmacy that has an entire store just for professional products, with no gimmicky retail products either.

Speaker #2: So, very solution-driven, profit-driven. Our price model is also really supported in each of these markets, and being able to provide a way to make more money in a tough market as well.

Speaker #2: And that's something that Biome offers everyone in every one of our markets: more profit per unit and more profit per square metre. So, I would be happy to go on record saying Canada is absolutely the best success story.

Speaker #2: Ireland is the best growth story. And the UK has a very important foothold in our strategic future in the Northern Hemisphere. So, all of them are important for different reasons.

Blair Vega Norfolk: Ireland is the best growth story, and the UK has a very important foothold in our strategic future in the Northern Hemisphere. All of them are important for different reasons. I can't comment on growth for FY27 ahead of it happening, but all of them we are meaningfully invested in. I did also share that we have other projects that we are working on that will come through in FY27.

Speaker #2: I can't comment on growth for FY27 ahead of it happening. But all of them, we are meaningfully invested in. And I did also share that we have other projects that we are working on that will come through in FY27.

Speaker #3: Can you add some information in colour around IP? And your new product trials?

Lauren Dwyer: Can you add some information and color around IP and your new product trials?

Speaker #2: Absolutely. BMB18, our biome's own probiotic strain, now has a patent pending and is also undergoing our second clinical trial. The first in vitro study was wildly successful.

Blair Vega Norfolk: Absolutely. BMB18, Biome's own probiotic strain, which has now got a patent pending and also our second clinical trial. The first in vitro study was wildly successful. We proved that the product has significant ability to reduce inflammation and modulate the immune system, which are key hallmarks of any probiotic strain then put into human research. As Lauren mentioned, we have the study with La Trobe and Athens University underway, so multi-center, multi-dose study, which we expect to at least be finished within FY27. Not sure on publication timelines, but we should get some data flowing through this financial year. What does that actually mean, though? We'll be able to start using this strain in products effective immediately.

Speaker #2: We proved that the product has significant ability to reduce inflammation and modulate the immune system, which are key hallmarks of any probiotic strain. Then it was put into human research.

Speaker #2: As Lauren mentioned, we have the study with La Trobe and Athens University underway. So, it's a multi-centre, multi-dose study, which we expect to at least be finished within FY27.

Speaker #2: I'm not sure about publication timelines, but we should get some data flowing through this financial year. What does that actually mean, though? We'll be able to start using this strain in products effective immediately.

Speaker #2: So, based on the new product development team at Biome, they're already looking at ways we can utilise this strain to further protect activated probiotics and develop new products.

Blair Vega Norfolk: Based on the new product development team at Biome, they are already looking at ways we can utilize this strain to further protect Activated Probiotics and develop new products, and strengthen existing products as well. We already have a commercial batch of the strain ready to go, and it will be just based on timing to be able to slip it into production and continue to grow. I did mention there are other new product launches. I cannot mention exactly what they are, but I did say watch this space over the coming months for release and details on those products. Total expected investment for UK eScript portal. Now we are getting all the questions come through. Just when we were wrapping up. The eScript portal, let me give you a bit of background on what it actually means for Biome.

Speaker #2: And strengthen existing products as well. So, we already have a commercial batch of the strain ready to go, and it will be just based on timing to be able to slip it into production and continue to grow.

Speaker #2: I did mention there's other new product launches. I can't mention exactly what they are, but I did say, "Watch this space over the coming months for release and details on those products."

Speaker #2: Total expected investment for the UK eScript portal. So, now we're getting all the questions coming through, just as we were wrapping up. So, the eScript portal—let me give you a bit of background on what it actually means for Biome.

Speaker #2: So, fundamentally, we are a bricks-and-mortar, premium, high-quality specialty range. We carefully select our partners where we put our product—we don't want it everywhere.

Blair Vega Norfolk: Fundamentally, we are a bricks-and-mortar, premium, high-quality specialty range that we carefully select our partners where we put our product. We do not want it everywhere. We do not want cheap revenue. We want long-term sustainable revenue that adds value to our business and helps us keep compounding that growth. E-commerce has traditionally been a little bit harder for us because we want to protect the brand. The e-commerce space is largely product and price-driven and very much promotionally led. Whoever has the cheapest buy price or the biggest discount, whether that is Amazon or TikTok or any other e-commerce store, will typically gain the transaction from the customer. The last thing Biome want is our product being traded on price. We work very hard to close down breach accounts. On any given day, you might find three or four people selling our product in Australia online.

Speaker #2: We don't want cheap revenue. We want long-term, sustainable revenue that adds value to our business and helps us keep compounding that growth. So, e-commerce has traditionally been a little bit harder for us because we want to protect the brand.

Speaker #2: The eCommerce space is largely product- and price-driven, and very much promotionally led. So, whoever has the cheapest buyer price or the biggest discount—whether that's Amazon, TikTok, or any other eCommerce store—will typically gain the transaction from the customer.

Speaker #2: The last thing Biome wants is our product being traded on price. We work very hard to close down breach accounts on any given day.

Speaker #2: You might find three or four people selling our product in Australia online. We're onto it every week to shut them down. The world is changing.

Blair Vega Norfolk: We are onto it every week to shut them down. The world is changing. AI is advancing and digital health is coming. Biome has been working on this project for more than three years now. I believe the total investment is around AUD 200,000, give or take, in this new IT facility, so very manageable. That is something we have been working on for two or three years now, this actual project, and it is now in final testing phase.

Speaker #2: AI is advancing, and digital health is coming. So, Biome's been working on this project for more than three years now. I believe the total investment is around £200,000, give or take.

Speaker #2: In this new IT facility, it's very manageable. That's something we've been working on for two or three years now—this actual project—and it is now in the final testing phase.

Speaker #2: What this will do is give us the ability to capture a share of that digital market, but do so in a professional setting.

Blair Vega Norfolk: What this will do, will give us the ability to capture a share of that digital market, but do it in a professional setting where we actually partner with health professionals and allow them a digital health journey to be able to provide eScripts to their patients and service them directly, capture the data directly, and be able to really support our strategic milestone or strategic goal in FY27, is to double down in that practitioner market. We are pretty excited about what it can mean. It is a tool that we will be able to turn on and off in any market. We do believe testing it in the UK market first is a good strategy in a market that has, I suppose, less other digital health players in that professional setting. It is exciting. It is going to be education, it is going to be e-commerce.

Speaker #2: Where we actually partner with health professionals and allow them a digital health journey to be able to provide eScripts to their patients. And service them directly, capture the data directly, and be able to really support our strategic milestone or strategic goal in FY27 is to double down in that practitioner market.

Speaker #2: So, we're pretty excited about what it can mean. It's a tool that we'll be able to turn on and off in any market. But we do believe testing it in the UK market first is a good strategy.

Speaker #2: In a market that has, I suppose, fewer other digital health players in that professional setting. So, it's exciting. It's going to be education. It's going to be e-commerce.

Speaker #2: But again, it's going to be in a protected, professional setting, and it won't be driven by price.

Blair Vega Norfolk: Again, it's going to be in a protected professional setting, and it won't be driven by price.

Speaker #3: Council, one last question.

Lauren Dwyer: Time for one last question.

Speaker #2: Okay.

Blair Vega Norfolk: Okay.

Speaker #3: If you were to launch a new product today, how long would it generally take to get traction and meaningful sales?

Lauren Dwyer: If you were to launch a new product today, how long would it generally take to get traction and meaningful sales?

Speaker #2: Oh, that's a very open question. So, look, I mean, with any new pharmacy that Biome opens, we tend to think of them in an 18-month timeline. From either initially they pop up on our sales report selling 10 or 20 boxes—we didn’t know about them—we send in one of our representatives, they start developing that business, training them, building confidence, gaining a hero in that store to start recommending it, and then we go through all sorts of different processes depending on what type of store, what type of account they are.

Blair Vega Norfolk: That's a very open question. Look, I mean, with any new pharmacy that Biome opens, we tend to think of them in an 18-month timeline from either initially they pop up on our sales report selling 10 or 20 boxes. We didn't know about them. We send in one of our representatives. They start developing that business, training and building confidence, gaining a hero in that store to start recommending it, then we go through all sorts of different processes depending on what type of store or what type of account they are. When it comes to new products, it's very similar. We're very pleased to get significant support from our major retail partners and all of our distributors. Basically, Biome has an agreement with all of our partners that any new product we launch goes in. This is very unusual in the industry.

Speaker #2: When it comes to new products, it's very similar. We're very pleased to get significant support from our major retail partners and all of our distributors.

Speaker #2: So, basically, Biome has an agreement with all of our partners that any new product we launch goes in. This is very unusual in the industry.

Speaker #2: Most brands, even the biggest vitamin companies, typically operate in retail with a one-in, one-out approach. They put in a new product in exchange for a poor-performing product.

Blair Vega Norfolk: Most brands, even the biggest vitamin companies, typically operate in retail with a one in, one out. They put in a new product in exchanging for a poor-performing product. All of Biome's products perform. We don't have 300 SKUs. We have 20 to 25. They all need to turn over, and our strategy isn't just to launch new products. When we put one in, we typically get support from the 600 Terry Whites, the 400 Pricelines, the 150 Blooms, and another 300 or 400 of our pharmacies, as well as our entire practitioner market through distributors taking all of our products day one. We believe we can access about half of our market within the first 12 months. The following 12 months, it should filter through the rest of the market.

Speaker #2: All of Biome's products perform. We don't have 300 SKUs—we have 20 to 25. They all need to turn over, and our strategy isn't just to launch new products.

Speaker #2: So, when we put one in, we typically get support from the 600 terawatts, the 400 price lines, the 150 blooms, and another three or four hundred of our pharmacies, as well as our entire practitioner market, through one.

Speaker #2: So, we believe we can access about half of our market within the first 12 months. Over the following 12 months, it should filter through the rest of the market.

Speaker #2: We also get meaningful hits of revenue when we launch a product, but we're very careful to ensure that that is covered by sell-through, not just in order to top up shelves and create 'sugar hits' of revenue.

Blair Vega Norfolk: We also get meaningful hits of revenue when we launch a product, but we're very careful to ensure that that is covered by sell-through, not just in order to top up shelves and create sugar hits of revenue because we want to normalize the business as much as you all want us to normalize it. Depending on the product, if it's a big category, it can take off immediately. There's a couple this year that are coming that we expect to be material volume drivers, and there's a couple that will be a little bit more niche that will continue to grow the interest in the brand with new types of health professionals. It's not a simple answer, but hopefully, that gives a little bit more color on the process.

Speaker #2: Because we want to normalise the business as much as you all want us to normalise it. So, depending on the product—if it's a big category, it can take off immediately.

Speaker #2: There are a couple this year that are coming that we expect to be material volume drivers. And there are a couple that will be a little bit more niche, but will continue to grow the interest in the brand with new types of health professionals.

Speaker #2: So, it's not a simple answer, but hopefully that gives a little bit more color on the process.

Speaker #3: Okay.

Speaker #2: Okay. Thank you very much for joining today. And Lauren, for that presentation, I thought it was fantastic. We look forward to catching up with you all soon through our FY27 and appreciate your support through FY26.

Lauren Dwyer: Okay.

Blair Vega Norfolk: Okay.

Lauren Dwyer: That's it.

Blair Vega Norfolk: Thank you very much for joining today, and Lauren, for that presentation. I thought it was fantastic. We look forward to catching up with you all soon through our FY27, and appreciate your support through FY26. Goodbye.

Speaker #2: Goodbye.

Lauren Dwyer: Goodbye

Operator: Goodbye