Polynovo (ASX: PNV) has announced record quarterly sales for the period ended 31 December 2021. The company's stock is trading 18% higher at noon.
The healthcare company achieved $8.06m in US sales in the second quarter, up 105% on the previous period. This was the first time that US quarterly sales exceeded US$5m.
From a quarter-on-quarter perspective, US sales rose 31% compared to first quarter sales of $6.14m.
Polynovo said the record result was underpinned by “excellent US sales results for October and November”.
Looking ahead, Polynovo intends to increase the size of its US sales team, with plans to add a further 10 representatives to expand coverage across key cities and regions.
In terms of the rest of the world, Polynovo said its major focus markets outside the US have been “patchy”. Its undergoing a number of initiatives to improve its go-to-market strategy.
The company is finding success across Europe, with first sales and repeat orders in Cyprus, Denmark, Italy and Germany.
Chairman of Polynovo, David Williams commented on the company’s growth, saying:
“While US sales are very encouraging, there is more to achieve as we still have new sales staff being onboarded and more staff to be employed … While the US is the engine room of our growth in the immediate future, there are many opportunities in the rest of the world where we are just starting out.”
Even after today’s meteoric rise, Polynovo shares are down -44% in the last 12-months and down -60% from December 2020 all-time highs.
The sharp decline was triggered by a disappointing trading update in January last year.
The company achieved only 31% sales growth in the first-half ended 31 December 2020, greatly overshadowed by management’s prior comments saying that “we continue to harness this [FY20] momentum to double our revenues again in FY21”.
Two Australian stockbrokers have covered Polynovo in recent months.
The consensus is a BUY rating with a $2.275 price target (+59% upside).
Ord Minnett - Hold rating with a $1.70 price target
Macquarie - Outperform rating with a $2.85 price target
Finance Writer & Social Media
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