Release Date: July 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tissue Regenix Group PLC (LSE:TRX, Financial) reported a 9% increase in group revenues for 2024, driven by a 23% growth in the dCELL business.
- The company achieved a record adjusted EBITDA, up over 150% from the previous year, and reported its first-ever annual operating profit.
- Tissue Regenix expanded its market presence by initiating sales into the European Union and extending its relationship with Arthrex, a major sports medicine company.
- The company successfully purchased its facility in San Antonio, which is expected to support future growth and capacity expansion.
- Tissue Regenix received EU MDR and UK MDR certifications for its OrthoPure XT product, enhancing its regulatory compliance and market opportunities.
Negative Points
- The BioRinse division faced headwinds, with growth slowing to 4%, impacting overall revenue growth.
- The strategic review process was prolonged, monopolizing resources and delaying the release of 2024 results, which affected investor confidence.
- Inventory levels increased significantly due to regulatory delays affecting market openings, leading to challenges in inventory management.
- The company's share price fell and was not reflective of its value, complicating potential strategic transactions.
- Regulatory delays, both domestic and international, hindered the company's ability to export or import tissue products, affecting market expansion efforts.
Q & A Highlights
Q: Why was there a delay in announcing the 2024 results, and what impact did it have on the company's value?
A: David Cocke, CFO, explained that the delay was due to a "perfect storm" of events, including an extended strategic review process that monopolized finance team resources and the departure of the company controller. These factors contributed to the delay, but there was no sinister intent. The delay did affect market confidence, but the company is pleased with the results reported.
Q: With the share price trading near its 52-week low, what steps is management taking to improve market confidence and shareholder returns?
A: Daniel Lee, CEO, stated that management is focused on driving shareholder value by continuing to grow the business and increase profitability. The company is also addressing inventory management and exploring new markets to optimize performance.
Q: What were the key outcomes from the strategic review, and will Tissue Regenix need to raise further cash for growth?
A: Daniel Lee, CEO, noted that the strategic review concluded that the company's market value did not reflect its true value. The Board decided not to pursue any offers that undervalued the company. The focus remains on growing the business as a stand-alone entity, and there is no immediate need to raise additional cash.
Q: How is the company addressing the significant increase in inventory levels in 2024?
A: David Cocke, CFO, explained that the increase was due to regulatory delays affecting market openings. The company has taken steps to manage donor intake and is exploring new markets for its products to align inventory levels with demand.
Q: Are there any regulatory changes that could impact the business positively or negatively?
A: Daniel Lee, CEO, mentioned that there are FDA guidance documents on sepsis and tuberculosis that the industry is pushing back on. These could impact tissue availability, but the company is monitoring the situation closely. Additionally, changes in CMS reimbursement policies for outpatient wound care could affect the business.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
