Aroa Biosurgery made $NZ103.9 million ($84.9 million) in revenue in the year ended March 31, up 23 per cent from 2024/25, the company announced on Tuesday.
Its gross profit rose 23 per cent to $NZ88.8 million ($72.5 million) and Aroa posted normalised earnings of $NZ11 million ($9 million), beating guidance of $5 million to $8 million, in what the company called a "breakout year".
Sales of Aroa's Myriad collagen matrix, which is made from sheep forestomach tissue, were up 54 per cent to $NZ49.5 million ($40.4 million).
Aroa chief executive and founder Brian Ward told analysts the company makes a 90 per cent profit margin on Myriad sales and its healing properties are backed by strong clinical evidence.
"Myriad is really the star. Myriad, we've been delighted with how that's performed," Mr Ward said.
It is being used for a wide range of complex wound and soft tissue reconstruction procedures, he said.
Aroa's other products, also made from sheep guts, are used in hernia and breast reconstruction and to treat diabetic food and venous leg ulcers.
"We're delivering products that deliver world-leading outcomes at a lower total cost of care," Mr Ward said.
Typically in the medical device industry, innovative new products are more expensive, he said.
"It's very rare for someone to deliver a meaningful improvement, but to also be able to do it at a lower cost. I think that's really what's magic about Aroa."
Aroa ended the year debt free, with $NZ27 million in cash and term deposits, having generated $NZ5 million in net cash over the year.
The company forecast 2026/27 normalised earnings of $NZ8 million to $NZ11 million on revenue of $NZ115 million to $NZ125 million.
Aroa shares were flat at 62 cents just before midday.
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