Organogenesis' Q4 Profit Jumps More than 150% To $54M, Issues Solid FY22 Guidance

Organogenesis Holdings Inc's ORGO Q4 FY21 sales increased 20% Y/Y to $128.6 million, beating the consensus of $124.70 million.

• The increase in net revenue was driven by a 30% increase in Advanced Wound Care product sales to $121.4 million, partially offset by a 45% decline in Surgical & Sports Medicine products sales to $7.2 million.
• Gross profit increased 18% to $96.0 million primarily from increased sales volume due to the strength in the Advanced Wound Care segment.
• Operating income was $20.5 million versus $21.6 million a year ago, a decrease of 5%.
• Adjusted net income reached $53.9 million compared to $19.5 million a year ago. Adjusted EBITDA was $26.3 million.
• Guidance: For FY22, Organogenesis forecasts sales of $485 million - $515 million, up 6% - 13% Y/Y on an adjusted basis, compared to the consensus of $508.23 million.
• The outlook includes sales from Advanced Wound Care products of $455 million - $481 million, and Surgical & Sports Medicine product sales of $30 million - $34 million.
• The company expects an adjusted net income of $60.2 million - $75.2 million and adjusted EBITDA of $79.9 million - $95.3 million.
• Price Action: ORGO shares closed 8.43% higher at $7.85 during after-hours trading on Tuesday.