ASX-listed Visioneering Technologies (VTI) is on track to double its annual net revenue in 2019 as the company announced its official entry into the lucrative Asian eyecare market.
The manufacturer of the NaturalVue Multifocal 1 Day contact lens for myopes and presbyopes has released its second quarter financial results for the period ending 30 June, 2019, and reported record-setting figures.
VTI generated net revenue of US$1.18 million (AU$1.71 m) for the quarter, which represents a 4% increase compared with the first quarter of this year, and a 95% rise over the corresponding 2018 quarter.
According to a statement to investors, VTI is now aiming to deliver net revenue of between US$6.5 million (AU$9.4 m) and US$7.5 million (AU$10.8 m) in FY19, an approximate 50% increase on its 2018 figure of US$3.3 million (AU$4.7 m).
“Visioneering achieved another record quarter, with shipments to US eyecare professionals growing 11%, cash receipts from customers growing 13%, and net revenue growing 4%; no small feat considering our record 28% growth in shipments in the first quarter,” VTI CEO Mr Stephen Snowdy said.
“We are also excited about our progress in international territories, especially our recent entry into the United Kingdom. We expect to add Canada and parts of Asia this year once we are able to satisfy their regulatory requirents and form distribution partnerships.”
VTI’s gross profit margin is expected to increase from 34%, reported in the second quarter of this year, to approximately 45% by the end of the fourth quarter, averaging approximately 40% for the full year.
“The September quarter is traditionally our strongest of the year, and we look forward to reporting those results to you in a few short months,” Snowdy said.
VTI’s NaturalVue contact lens has been available to Australian eyecare professionals since the beginning of this year, with the company signing a local distribution deal with Contact Lens Centre Australia.
In March, the company generated its first sales in the UK, and last week announced it had secured regulatory approval to sell its contact lens and other upcoming products in Hong Kong, paving the way for further expansion into the Asian market.
Hong Kong is believed to have one of the highest rates of myopia in the world, increasing from more than 25% of 5 to 9-year-olds to 90% of 20 to 24-year-olds, representing an approximate addressable market of nearly US$100 million (AU$145 m).
VTI estimates the Chinese market to be as large as US$11bn (AU$16 b), with sizable markets also in Japan, Korea and Southeast Asia. Hong Kong is an important market for us because it represents our initial entry into Asia and while a relatively small market, the prevalence of myopia indicates a strong need for our NaturalVue Multifocal product,” Snowdy said.
VTI’s Hong Kong registration will allow for sales through regulated channels such as hospitals. It will now work to establish a distribution partnership in anticipation of commercial launch later in the year.
