The Biome Australia Ltd (ASX: BIO) share price is in the spotlight on Monday. This comes after the company released a strong sales update to the market.
At the time of writing, the Biome share price is up 10.84% to 46 cents, making it one of the stronger performers on the ASX today.
By comparison, the broader S&P/ASX All Ords Index (ASX: XAO) is currently flat.
So, what did Biome report, and what else could be driving the share price higher?
Sales keep growing despite a tough quarter
According to the release, Biome reported Q2 FY26 revenue of $6.48 million. That result represents 40.9% growth compared to the same quarter last year and 9.1% growth compared to the previous quarter.
This is a strong result because the December quarter is usually a slower time for the business. There are fewer trading days, and pharmacies often focus more on gift items than health products.
Even with those challenges, Biome still delivered its strongest second-quarter result on record. This shows demand for its probiotic products remains strong.
A solid first half of the year
Looking beyond the quarter, Biome also shared its half-year results for FY26.
Total sales for the first half came in at $12.42 million, which is 40.2% higher than the same period last year. This compares with $8.86 million in the first half of FY25.
Management said the result reflects continued demand for its Activated Probiotics products. These products are backed by clinical research and are mainly sold through healthcare practitioners and pharmacies.
Why investors are paying attention
There are a few reasons why the market has responded positively today.
First, revenue growth above 40% is impressive for a consumer healthcare company. Second, achieving that growth during a seasonally slower period makes the result even more encouraging.
Biome also operates in the healthcare sector, which many investors see as more defensive. Demand for health products often holds up better when economic conditions are uncertain.
With a market capitalisation of around $102 million, investors may be starting to reassess how fast Biome can grow if current trends continue.
What to watch next
While today’s update focused on sales, profitability will be the next area of interest for investors. The market will now start looking for signs that growth is translating into improving earnings.
But so far, Biome appears to have started FY26 well.
The next few months should give a clearer picture of whether that growth can continue.
The post This ASX small-cap stock just jumped 10%. Here’s why appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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