Covalon Technologies Ltd. (TSXV: COV, OTCQX: CVALF) has released its financial results for the fourth quarter and fiscal year ending September 30, 2024, showcasing significant growth in revenue and profitability. The advanced medical technologies company reported a 29% increase in total revenue, reaching approximately $8.87 million for Q4, compared to $6.90 million in the same period last year. This growth trajectory is largely attributed to a 35% rise in product revenue, driven by heightened demand for the company’s collagen dressing and an expanded product line within U.S. hospitals.
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Brent Ashton, Covalon’s CEO, expressed pride in the team’s accomplishments during a transformative year. He emphasized the company’s commitment to delivering value to patients and healthcare providers through enhanced product offerings and exceptional care support. The focus on innovation and quality has positioned Covalon for continued growth in 2025.
For the entire fiscal year 2024, Covalon reported a 17% increase in total revenue, amounting to $31.17 million, up from $26.60 million in the previous year. Product revenue surged by 30%, while development and consulting services revenue saw a dramatic decline of 97% due to a strategic pivot towards its U.S. product business.
The company’s gross margin for the year also showed improvement, rising to 61% from 54% in fiscal 2023. This increase reflects effective management of inventory provisions and cost control measures implemented during the year.
Covalon has made strides in operational efficiency, with total operating expenses decreasing by over $2 million to $16.78 million for the fiscal year. Notably, sales and marketing expenses dropped by 33%, reflecting streamlined staffing and reduced travel costs as part of restructuring efforts.
Research and development expenses rose slightly to $1.59 million, driven by increased investment in sustaining engineering costs as the company continues to innovate its product offerings.
As Covalon looks ahead, it remains focused on leveraging its patented technologies to develop innovative healthcare solutions that cater to advanced wound care and infection control. The company is committed to enhancing its product portfolio while ensuring high-quality service delivery.
