Apiam Animal Health Revises FY23 Outlook Due to Inventory Write-down

Apiam Animal Health Limited (ASX: AHX) issued a revised trading update for the fiscal year ending June 30, 2023. Initially, on August 1, 2023, the company projected a reported NPAT (Net Profit After Tax) of AU$3.9 million. However, due to new information and a subsequent revaluation of its business strategy, Apiam now anticipates a non-cash expense of AU$2.4 million related to inventory. This write-down will impact the reported NPAT, reducing it by AU$1.7 million for FY23.

Notably, the adjustments exclude one-off expenses, amortization, and certain revenue adjustments. The inventory write-down expense of AU$2.4 million pertains specifically to sanitiser and surface protectant products. This decision to write down the inventory value is based on new regulatory information that indicates obstacles to making registered claims about these products as long-term disinfectants. Additionally, market dynamics suggest that selling these products at a premium price without the registered claims is challenging in the Australian and USA veterinary markets.

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