• Financial Recovery: Revenue declined 6% to $5.6M, but net loss reversed sharply by 98% to $84K
• New Product Expansions: Launched SKNPRO Collagen and PROBIO-30, initiated Omega-3 registration, and developed Nano Collagen
• Operational & Financial Gains: Recovered $1M from receivables, implemented cost-cutting, and strengthened partnerships

Holista Colltech Limited (ASX: HCT) reported a 6% decline in total revenue to $5.6M for the full year ended 31 December 2024 (FY2024), primarily due to returns from a major chain pharmacy and reduced demand for Ovine Collagen. However, the company was able to significantly reduce its net loss after tax by 98% to $84K, supported by debt recoveries and cost reversals. Several one-off items contributed positively to the financial results, including debt recoveries of $560K from loans and $534K from trade receivables, as well as reversals of over-provisioned legal settlements ($200K) and less than budgeted demolition and remediation costs ($138K). Operationally, the company launched two new products, SKNPRO Collagen and PROBIO-30, and undertook various initiatives to cut costs and improve internal efficiencies. The macroeconomic environment remained supportive, with stable operating costs and predictable borrowing costs. The company's Dietary Supplement and Food Ingredients segments showed signs of recovery, while the Ovine Collagen segment secured a $163K order from Nano Malaysia and developed a newly patented Nano Collagen product. Looking ahead, the company is focused on growth initiatives, including the registration of a higher-absorption Omega-3 product, the development of sugar-free and low-sugar formulations, potential applications of Nano Collagen in wound dressing, and a probiotics formulation for poultry. The company has also issued two converting notes totaling approximately $1.545M to strengthen its financial position and support ongoing initiatives.

The company expects a higher-than-usual price increase in April to compensate for the decrease in gross profit margin to 42% (FY2023: 49%) due to higher raw material costs and a stronger US dollar.

The company is awaiting the outcome of a grant application in Collie and is actively seeking additional funding from the Western Australian government. Parallel discussions are underway with the governments of Malaysia and Sarawak state to establish a Nano Collagen manufacturing facility. The company anticipates receiving payments from the exclusive use of the collagen patent, which are expected to contribute to financing a new plant in Collie.