Belluscura shares surge on strong sales momentum, improved outlook
By Josh White
Date: Tuesday 27 Aug 2024
(Sharecast News) - Belluscura, a developer of lightweight and portable oxygen enrichment technology, reported strong sales momentum and an optimistic trading outlook on Tuesday, as it prepared for the full commercial launch of its new 'DISCOV-R' portable oxygen concentrator.
The AIM-traded firm, which was holding its annual general meeting, highlighted a significant increase in sales and a positive forecast for the rest of 2024.
It said that it achieved record sales in July, generating $0.71m in revenue, surpassing the previous high of $0.52m set in June.
The company expected the strong sales trajectory to continue, driven by growing market acceptance of its X-PLOR device and the anticipated success of the DISCOV-R, which was introduced to the US market via a soft launch in June.
It said the DISCOV-R portable oxygen concentrator, which weighs just over six pounds, offered 50% more oxygen output than the leading competitor and produced more oxygen by weight than any other portable device on the market.
The strong demand for the DISCOV-R was reportedly evident, with all units produced in June and July already sold.
Belluscura said a full commercial launch of the device was scheduled for the middle of the fourth quarter.
Given the promising market response and the upcoming launch of the DISCOV-R, Belluscura updated its trading outlook for the final months of 2024.
The company said it now anticipated full-year revenue for 2024 to be between $8m and $10m - a substantial increase from $0.83m in 2023.
Furthermore, the company expected to achieve positive EBITDA in the first quarter of the 2025 financial year, with an annualised revenue run rate of $14m to $16m by the end of the year.
To support the ongoing expansion and meet the high customer demand for the DISCOV-R, Belluscura said it was evaluating various financing options, including debt and credit facilities.
The company noted that, while increased sales of the X-PLOR units had reduced raw materials inventory, securing additional funding would be crucial to sustaining the growth of the DISCOV-R.
At 1216 BST, shares in Belluscura were up 43.86% at 15.82p.
Reporting by Josh White for Sharecast.com.
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