Announcement PDF RNS Number : 8580O OptiBiotix Health PLC 30 June 2025 OptiBiotix Health plc ("OptiBiotix" or the "Company" or the "Group") Final results Notice of Annual General Meeting & Investor Presentation OptiBiotix Health plc (AIM: OPTI), a life sciences business developing products which reduce hunger and food cravings, enhance the gut microbiome, and sweet fibres as healthy sugar substitute announces its audited results for the 12 months ended 31 December 2024. Highlights · £1,004k orders received with reportable revenue for the year up 35% to £870k (2023: £644k) · Sales and marketing investment in Ecommerce, India and the USA starting to show strong returns across all areas of the business reducing dependency on a small number of partners or territories:§Ecommerce sales up from £186k to £387k (+108%) with Amazon sales up 156% and a 290% increase in subscriptions §Launch of products in India with Morepen in December 2024 leading to £171k of revenues, up from marginal revenues in 2023 §Good early sales growth in Asia, albeit from a low base §First order received from a USA partner, Daily Nouri · Launch of LeanBiome in MuscleTech, a market leader in sports nutrition · Clearance of the large stock overhang at Maxum (48mt) and Cambridge Commodities (16mt) which has impacted on reportable revenues in the last few years · Fixed operating costs are slightly lower for the year £1,605k (2023: £1,662k). We anticipate fixed costs to reduce in 2025 through reductions in PR, Broker and staff costs · The Company ended 2024 with a strong balance sheet of £9m (2023: £9.4m), a strong cash position of £739k (2023: £635k), no debt and a growing pipeline of existing customers reordering and new customers looking to launch Post period end · The recovery in salesin 2023 and sales growth in 2024 has continued into 2025 with order book for Q1 2025 higher than the sales achieved H1 2024. · Launch ofmultiple SlimBiome® containing products on Amazon India · Launch of first product in the USA, a FeelFull prebiotic lemonade containing SlimBiome®, by Daily Nouri · Launch of products containing SlimBiome® with a NASDAQ listed partner · First order from a leading weight management brand in the USA looking to launch two products containing SlimBiome online and subsequently in Walmart USA · New six metric tonne order received from Brenntag in Q2, the Company's new Australian distributor · New customers in Asia in 2025 at various stages of product development and launch ensuring continued · Repeat order from Morepen in H1 with larger order expected in H2 as the products enter retail. New strong growth in this region product development underway to expand product range · Study published in European Journal of Nutrition looking at glycaemic control and insulin response. Study conducted in partnership with leading US weight management brand · Successful placing to raise£750,000 in May 2025 to support sales growth in the USA · Ongoing discussions with a number of major brands to incorporate SweetBiotix and microbiome modulators in their products The Annual Report and Financial Statements, which will be sent to shareholders today, contains a Notice of Annual General Meeting ("AGM") which will be heldat 12pm on 6 August 2025 at the offices of Walbrook PR,75 King William St, London, EC4N 7BE. Investor briefing Stephen O'Hara and his team will provide a live presentation to investors to discuss the results via the Investor Meet Company platform on Thursday, 3 July 2025 at 2pm BST. The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via the Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.Investors can sign up to Investor Meet Company for free and add to meet OptiBiotix. To register for the presentation, please use this link:https://www.investormeetcompany.com/optibiotix-healthplc/register-investor Stephen O'Hara, CEO of OptiBiotix Health plc said:"After restructuring the management team in 2023 and focus on investing in key strategic markets in the USA, India, and ecommerce, 2024 has seen strong sales growth across all areas of these businesses. Sales have continued to grow in 2025 and should accelerate as we see the full year effect of 2024 launches, new partners launching products in the USA and Asia, and ecommerce continuing its growth trajectory with the launch of products on Amazon India. "Our investments in sales and marketing are starting to deliver a multi-channel, multi territory revenue stream, reducing reliance on a single partner or territory. We continue to see sales momentum building across all areas with Q1 sales and orders in 2025 higher than H2 2024 and continuing in Q2. This has been helped by a 6mt order from Brenntag in Australia. We are particularly pleased to have cleared the large stock overhang held in Australia and the UK which has impacted on reportable revenues in the last few years. "As the Company reduces its PR, broker, and staff costs andits investment in marketing and R&D, and continues to grow its top line and improves margins, all parts of the business should become profitable and the Group generate positive cashflow. "This means we enter 2025 with a strong balance sheet (£9m) and cash position (2024: £739k; 2023: £635k) no debt, a strong order book supported by a pipeline of existing customers reordering, new customers looking to launch, and appreciating assets through our shareholdings in PBX and SBTX. "On behalf of the Board, I would like to thank our shareholders for their patience and ongoing support, and anticipate continuing on an upward trajectory for the remainder of 2025 and beyond." This announcement contains information which, prior to its disclosure, was considered inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement. Forward-Looking Statements Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority. For further information, please contact: OptiBiotix Health plc Neil Davidson, Chairman Stephen O'Hara, Chief Executive www.optibiotix.com Contact via Walbrook below Cairn Financial Advisers LLP (NOMAD & Broker) Liam Murray / Jo Turner / Ludovico Lazzaretti Tel: 020 7213 0880 Walbrook PR Ltd Anna Dunphy Mob: 07876 741 001 About OptiBiotix - www.optibiotix.com OptiBiotix Health plc (AIM: OPTI), which was formed in March 2012, brings science to the development of compounds which modify the human microbiome - the collective genome of the microbes in the body - in order to prevent and manage human disease and promote wellness. OptiBiotix has an extensive R&D programme working with leading academics in the development of microbial strains, compounds, and formulations which are used as active ingredients and supplements. More than twenty international food and healthcare supplement companies have signed agreements with OptiBiotix to incorporate their human microbiome modulators into a wide range of food products and drinks. OptiBiotix is also developing its own range of consumer supplements and health products. The Company's current areas of focus include obesity, cardiovascular health, and diabetes. Chairman's report This has been a year of strong sales growth and good strategic progress, delivering against the major objectives we set ourselves for 2024: increasing our number of partners and sales in our key target markets of the USA and Asia, growing our direct-to-consumer sales through investment in e-commerce channels, and increasing sales of both final branded and white label products containing our ingredients so as to deliver a dual income stream. Strategy and business development From its inception, the business has had a clear strategic focus on developing unique products with proven functional benefits in high growth markets around the world, and balancing risk and reward by building sales of its first-generation products while developing more innovative second-generation products with even greater potential. Heightened industry and consumer awareness of the importance of reducing hunger in achieving weight management has driven growing appreciation of the benefits of our key first-generation product SlimBiome®, whose effectiveness in reducing hunger and food cravings has been proven in multiple human studies. These have allowed us to gain regulatory approval in many territories worldwide that permit us to make on-pack health claims that distinguish SlimBiome® from competing products. This in turn is helping us to attract stronger business partners who are willing to make investments in marketing to drive sales growth, laying the foundations for a substantial global business in the years ahead. At the same time, we have progressed discussions with a number of major partners to bring our second-generation products to market, presenting opportunities that are potentially transformational for the Company and shareholders alike. We remain confident that these discussions will lead to a successful outcome. Results The strong sales momentum re-established after our management change early in 2023 continued into 2024 with orders increasing by 56% to £1,004k and delivered sales up by 35% to £870k. Selling costs have increased to £651k (2023: £125k). Fixed operating costs remain flat for the year at £1,605k (2023: £1,661k) and should reduce through 2025 with actions already taken to reduce in PR, Broker and staff costs. Selling costs increased as planned due to investments in sales and marketing in India with Morepen, setting up cost for Amazon India, and online sales in China and Europe. These investments have led to increased revenue growth across all parts of the business. As we continue to grow sales and improve margins whilst reducing fixed costs (PR, Broker, R&D, staff),and our continuedinvestment in marketing, all parts of the business and the Group should become profitable We continue to enjoy a strong balance sheet, with gross assets at the year-end of £9m (2023: £9.4m) and cash of £739k (2023: £635k). The Board David Blain was appointed to the Board as Finance Director and Company Secretary on 7 January 2025. He brings to us extensive financial, commercial and board experience with a range of private and public companies including Iksuda Therapeutics Ltd, Applied Graphene Materials plc, Nanoco Group plc and Inspired Capital plc. In his parttime role with us he will focus on enhancing our divisional P&L accounting and improving the control of costs throughout the Group, with the aim of moving each division and ultimately the Group to profitability. David joined the Company on 1 November 2024, prior to Graham Myers' retirement from the Board on 30 November 2024. Graham joined us in the part-time role of Finance Director a year earlier, and had resigned due to other commitments. We are grateful to Graham for his contribution to the business and wish him well for the future. Outlook We made a very strong start to the new financial year, with our order book for Q1 2025 surpassing the sales we achieved in H1 2024. We are beginning to see returns from the investments we have made to grow our business in India, the USA, Asia and Ecommerce with growing sales in all parts of the business. Having sales and manufacturing in multiple territories helps mitigate risk from country specific tariffs or regional disputes which have become more common in recent times. Building our ecommerce channels has demanded a significant initial investment in marketing to build awareness and brand recognition and create interest and drive sales growth. As we convert an increasing proportion of our ecommerce customers to subscribers, marketing expenditure is expected to decrease and we believe that we can look forward to all parts of the business becoming profitable and generating positive cashflow. R C N Davidson Chairman 27 June 2025 Chief Executive Officer's report We have made excellent commercial progress during 2025, with our investments in the key strategic markets of India, the USA and Asia delivering larger partners who are investing in marketing our products, leading to strong sales and early repeat orders. Our key first-generation products are well positioned to benefit from growing industry and consumer interest in the suppression of hunger and appetite as a route to managing weight with on-pack health claims that give us a key point of difference. The clearance of a substantial stock overhang during the year has eliminated a significant drag on our reported sales and we entered 2025 with a strong order pipeline. Our focus is now on improving margins and reducing costs to bring the business to profitability, while we continue to develop the huge potential of SlimBiome in managing hunger in a market with strong consumer interest, WellBiome in improving gut health, and our second-generation product portfolio. Strategic overview OptiBiotix Health (AIM: OPTI) is a life sciences business focused on the development of products which reduce hunger and food cravings, enhance the gut microbiome, and provide a healthy substitute for sugar. Our strategic approach has been designed to reduce risk and maximise opportunities for investors by recognising the challenges inherent in bringing new technologies and products to a naturally conservative global food market, where consistency and risk avoidance are key and the acceptance of new products is notoriously slow. Since our inception we have developed an extensive portfolio of microbiome assets including not just prebiotic products likeSlimBiome®, WellBiome®, SweetBiotix® and Microbiome modulators within our core OPTI business, but also skincare through SkinBioTherapeutics PLC (SBTX) and probiotics through ProBiotix Health plc (PBX). Together these create a diverse portfolio of tangible assets in an emerging area of healthcare that is of growing interest in consumer markets throughout the world. We are pleased to note strong commercial progress made by both SBTX and PBX during the year, and we see considerable potential for further growth in both these companies in the future. As sales continue to grow and these companies reach profitability we expect their value to increase. This gives us the potential to realise value through the sale of shares, so as to reduce our need to fundraise in a volatile market, or to return cash to our shareholders through an ad hoc dividend. Within OptiBiotix, our strategy is to focus on global markets with exceptional growth potential and to target these with a diverse portfolio of highly differentiated, clinically proven and patented products. These products have been developed to anticipate and align with global megatrends and growing market needs as illustrated by the following market reports: · Proven scientific and clinical efficacy is a key consumer requirement in purchasing health products:The top wellness trends in 2024 | McKinsey · Natural weight management/appetite suppressants like SlimBiome®:https://www.verifiedmarketreports.com/product/appetite-suppressants-market/ · Digestive Health and the Microbiome (WellBiome®, Microbiome modulators):Ten Key Health and Nutrition Trends for 2024 - KHNI (kerry.com) · Sugar reduction (SweetBiotix®):Ten Key Health and Nutrition Trends for 2024 - KHNI (kerry.com) The years we have spent undertaking clinical studies to establish robust health claims for our firstgeneration products mean that SlimBiome® has now achieved scientific credibility and acceptance by major partners and consumers as a proven aid to weight management. This has allowed us to gain regulatory approval in multiple international territories across Europe, North America, Asia and Australasia for on-pack health claims which are key to differentiating our product from competitors in a large but crowded marketplace. We note that one of the USA's biggest weight management brands has placed an order to include SlimBiome in their products with on pack reference to studies showing a 73% and 82% reduction in hunger. This partner intends to launch products in Walmart stores. We have also successfully extended our technology into new channels such as sports nutrition with LeanBiome® already incorporated into two of the world'sleading sports nutrition brands, Myprotein and MuscleTech,and into new product areas such as gut and digestive health with WellBiome®. The last year has seen a significant change in industry and consumer awareness of the impact of reducing hunger and cravings on weight management, something OptiBiotix first reported in consumer studies on its SlimBiome® product as long ago as 2016 (announced: 6 September 2016). This interest in bringing functionality, like reducing hunger and cravings, into weight management has meant that traditional brands like Slimfast and Weightwatchers who have not focused on these areas have lost market share and opened up new opportunities for functional products. Confirmation of the ability of SlimBiome® to reduce hunger and cravings through a series of independent human studies, published in peer reviewed journals, is enabling us to attract international partners, who are willing to invest significant amounts in advertising to quickly grow their market share and so increase the potential for strong sales growth. Throughout the world, increasing governmental, medical, scientific, media and consumer interest in the growing challenge of obesity has helped OptiBiotix in raising awareness of the potential for our clinically proven product, SlimBiome®, which works in a similar way to injectable weight loss GLP-1 agonists like Semaglutide, marketed as Ozempic and Wegovy, in reducing hunger and cravings to support weight loss in overweight individuals by reducing hunger and cravings - but in a totally natural, non-invasive way, and without any adverse side effects. News releases from Universities highlighting the potential for SlimBiome® as a natural alternative to Ozempic and Wegovy helped us to secure a number of interviews with specialist journalists and a notable article appeared in the August 2024 issue of Nutrition Industry Executive (NIE), a publication widely read by industry decision-makers in the USA. While OptiBiotix's commercial focus has been on overweight individuals, recent work with dieticians at a speciality London obesity clinic has indicated that SlimBiome® may have potential as an adjunct to treatment with Ozempic/Wegovy. Reports suggest that patients taking anti-obesity drugs often experience a decreasing effect over time, despite increasing their dose. To counter this, a small number of patients were given SlimBiome® with patients reporting an enhanced appetite suppressant effect. Work is ongoing to explore whether SlimBiome® combined with Ozempic may help to reduce drug dosage (and cost) and enhance or prolong the appetite suppressant effect of these anti-obesity drugs. The high market valuations attached to potentially effective weight management products was underlined in March 2025 by the collaboration agreement signed between the Swiss drug manufacturer Roche and Zealand Pharma of Denmark for the development of Zealand's drug Petrelintide, worth up to US$5.3 billion:https://www.reuters.com/business/healthcare-pharmaceuticals/roche-develop- commercialize-obesity-drug-with-zealand-pharma-2025-03-12/. The Group now has approved health claims, a broad IP portfolio, a network of manufacturing and distribution partners, and is growing its brands in multiple markets around the world. Whilst building sales in diverse international markets takes longer than just building sales in home markets, it reduces the risk of our products being copied in other territories and builds multiple revenue streams. This creates the foundations for a substantial global business in the years ahead. The Group is at a significant point with its second-generation products, with discussions ongoing with a number of major partners, including two well-known brands of popular beverages, which we hope will lead to material news flow in the near future. These brands are interested in a range of our products which cross over different parts of their businesses. We are pleased to report that ® our SweetBiotix products have now been tested by an independent expert tasting panel and in a range of branded drinks, dairy products and as a bulk product and have shown significant taste advantages over sugar. Partner testing has shown similar results. We are continuing to work with DSM-Firmenich and a manufacturer who supplies products to major corporates like Unilever which uses 10,000 metric tonnes of sugar per annum in addition to a number of other companies looking to incorporate SweetBiotix® into their products. The substitution of sugar with SweetBiotix® in partner products is a complex process requiring input from multiple teams within large companies (R&D, regulatory, product innovation/ development, IP/legal, manufacturing, commercial etc) often with conflicting priorities. Whilst frustrated by the length of time this process is taking, we are pleased at the level of engagement and the steady progress being made, and we are confident of a successful outcome. A number of these partners are global brands and have strict confidentiality conditions in place and regularly screen for use of their names in chat rooms and other media forums. We ask investors to understand our need to respect our commitment to our confidentiality agreements to protect their interests and avoid damaging our commercial relationships. We also continue to see very significant further potential for revenue growth and value creation through the development of microbiome modulators, which apply our unique patented technologies to precision engineer the human microbiome to enhance those microbes that deliver health benefits. This is an emerging field of research and development for both the food and pharmaceutical industries, which we believe offers the opportunity to transform healthcare. Scientific overview Our recent R&D activities have focused on the following areas: SlimBiome® Double blind, controlled human intervention studies on the impact of a single dose of SlimBiome®intake on glycaemic and insulin response, and measures of fullness and hunger over a 2.5 hour period have been completed in: · 16 healthy weight adults (University of Roehampton): showing a significant impact on insulin response, a significant reduction in hunger and an increase in fulness. This has been accepted for publication in the European Journal of Clinical Nutrition, one of the leading journals in its field. · 20 overweight adults (Brunel University of London): showing a significant reduction in hunger. We are submitting this study for publication in the Journal of Functional Foods. The first study has been accepted for a presentation by Prof. Adle Constabile at the International Prebiotic Association conference in June 2025. We are awaiting the outcome of the second study which was submitted for a presentation at the Nutrition Society summer meeting in 2025. These studies, presentations, and publications are important in marketing and to substantiate health claims by regulatory bodies. WellBiome® We have undertaken a study on the impact of WellBiome®in a novel in vitro model of the human gut. The main aims of the study focus on: · The impact of WellBiome®on microbiome composition and short chain fatty acid production in conditions simulating the three parts of the human large intestine. · Theimpact of WellBiome® fibres (XOS, inulin) individually on the above-mentioned parameters to demonstrate the superior performance of WellBiome®. Result analysis is ongoing. Data shared to date show a superior impact of WellBiome®compared to Inulin and XOS: · It supports gut microbiome stability in all gut areas. · It supports beneficial bacteria (bifidobacteria) in all gut areas. · It reduces potentially pathogenic bacteria. · It increases short chain fatty acid synthesis in all gut areas. This study has been accepted for poster presentation at the International Prebiotic Association conference in June 2025. On the basis of the above preliminary outcomes, we have been approached by the MiGut research group in the University of Leeds to support a grant application looking into the impact of WellBiome®in promoting gut microbiome resilience and stability during antibiotic intake. We will be investigating both a prophylactic and a treatment effect in gut models. The global antibiotic-associated diarrhoea (AAD) treatment market is projected to grow from $1.43 billion in 2024 to $4.62 billion by 2034, with a compound annual growth rate (CAGR) of 12.4% (FactMR, 2025). Additionally, we are submitting a further BBSRC/MRC grant application for a clinical study looking at the impact of WellBiome®intake eight weeks prior to open heart surgery in patients. This study has NHS ethics approval and was delayed due to change in universities from the principal investigator. It would be a double-blind placebo control and primary outcomes will be relevant to time in ICU, post operative recovery, and complication occurrence among others. Data will additionally be correlated to a very large NHS database of past operations whereby we can patient match for outcomes. If positive, this could be a very high impact study for WellBiome®. Consumer Health and Ecommerce We made significant investments in our Ecommerce business during 2024 to drive direct-to- consumer sales as a strategic move to reduce reliance on retail partners and increase profit margins. The Consumer Health division has the advantage of receiving online sales income immediately and allows more control over the Company's brands, IP and messaging whilst reducing reliance on distributors to grow our brands. This investment drove a 108% increase in total Ecommerce sales during the year to £387k (2023: £186k). The largest single area of growth was Amazon, where our sales increased by 156%. Sales in China grew by 28% and direct sales through our own website by 5%. In terms of profitability, our own website was profitable every month and overall in 2024 due to its low marketing spend; China was profitable for seven out of the twelve months and recorded a small overall loss for the year; while Amazon was loss-making every month due to the significant investment in marketing needed to grow the customer base. As we grow our subscriber base and increase sales from repeat purchases, marketing costs should reduce as a percentage of sales which should lead us to profitability on Amazon. The Company has successfully moved to the Fulfilment By Amazon model ('FBA') which allows customers to receive faster delivery through Prime accounts. This has helped Amazon subscriptions increase from 82 to 320 (a 290% increase) with subscriptions now making up just under 30% of our overall Amazon sales and SlimBiome® consistently ranked among Amazon's top best sellers for anti-appetite-suppressants. North America We have made good progress towards our strategic goals of increasing our number of partners and growing our sales within the USA, the world's largest economy. At the beginning of the year we werepleased to announce the launch of LeanBiome® in MuscleTech's Nitro Tech Ripped range, a premium protein powder designed to support athletes who want to lose fat and build lean muscle. MuscleTech defines itself as the No.1 selling Bodybuilding Supplement Brand in America-https://www.muscletech.ca/research/- and theinclusion of LeanBiome® inthisleading global sports brand is a significant endorsement of our product. This means that LeanBiome® is now included in two leading sports nutrition brands, Myprotein and MuscleTech, a global market worth $45.2bn in 2023 and expected to grow at a CAGR of 7.5% per annum to 2030(Grand View Research, 2023). In Q4 we received our first order of just under one metric tonne of SlimBiome® from Daily Nouri, a well-regarded US brand known for its science-backed, clinically supported probiotic and prebiotic solutions impacting on gut health. These are sold through its own online store, Amazon and major retailers including Walmart and Albertsons. This order was in preparation for the launch in February 2025 of a new FeelFull prebiotic lemonade drink containing SlimBiome®, with on-pack health claims which state daily use supports 'reduced appetite and cravings' and a 'feeling of fulness' supported by our own multiple clinical studies. We are also working with two additional partner