Soft-tissue regeneration company Aroa Biosurgery (ASX:ARX) has provided an update it says highlights the recovery in its sales that were impacted by the COVID-19 pandemic in the June quarter.
The company previously announced it experienced a slowdown in sales from late March 2020 as a result of the pandemic.
In an update yesterday, the company said its recovery has exceeded "internal expectations" with the calendar year 2020 product revenue at the end of August only nine per cent lower than the corresponding period last year.
"While elective surgeries for Ovitex products were initially impacted by lower procedural volumes, there has since been a solid recovery. The wound care business (Endoform) which was less impacted is also improving," it said.
The company said it is optimistic it will deliver growth. "The drivers of this growth are expected to include improving momentum with all products and increased penetration within existing accounts, where there is good scope for increased sales in the short to medium term," it said.
According to Aroa chief wxecutive Brian Ward, “The outlook for the Company is increasingly positive moving forward. While there was an initial impact on our business due to COVID-19 in the June quarter, it was an industry-wide issue, and we now feel that the worst is behind us. We’re starting to see month-by-month improvement and expect this to continue.
“There’s a lot of opportunity ahead of us. The fundamentals of our business remain strong and we are well-positioned to execute on our strategy over the next 12 months and deliver strong growth over the long term.”