28th Apr 2025 12:26
(Alliance News) - AOTI Inc on Monday reported that it delivered a 2024 growth across all of its business segments, showing a "higher margin Medicaid sector growing faster than originally expected."
AOTI is an Oceanside, California-based wound healing-focused medical technology company.
The company had a pretax loss of USD945,000 in 2024, narrowed from USD7.7 million in 2023.
Revenue rose 33% to USD58.4 million in 2024, from USD43.9 million in 2023.
AOTI attributed this to the achieving strong growth across all of its segments, increased coverage in the US and internationally, and earlier than expected access to higher-margin markets outside of the veteran administration.
It also noted that it had expansions into six Medicaid states and a five-year veteran administration contract extension.
Its adjusted earnings before interest tax, depreciation, and amortisation more than quadrupled to USD945,000 in 2024, from USD1.7 million the prior year. The company added that this increase reflected a greater proportion of higher margin non-veterans administration business.
Looking forward, AOTI said that it expects to deliver revenue growth between 27% and 30% "in the near to medium future."
Furthermore, the company expects an Ebitda margin to be between 14% and 16%.
AOTI said that whilst it faces uncertainties due to the US tariffs, it remains committed to its strategy to drive growth. "The board does not currently foresee any material impact on the financial performance of the business from the recently introduced tariff position in the US," AOTI said.
Chief Executive Officer Mike Griffiths said: "We are confident in delivering continued profitable growth, leveraging our investments in market access and our commercial operations, and strengthening our market leadership despite the macroeconomic challenges."
AOTI shares fell 3.4% to 79.70 pence on Monday afternoon in London.
By Olivia Mason-Myhill, Alliance News reporter
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