Medical device company Cochlear Limited has shared its revenue for the six months through December of $893 million, a nine per cent increase driven by strong growth in cochlear and acoustic implant sales.
In particular, Cochlear implant units increased by 14 per cent driven by strong demand for the Cochlear Nucleus 8 Sound Processor, which was launched during the second quarter, and the continuing recovery from COVID surgery delays across the emerging markets.
However, its statutory net profit was down 16 per cent to $142 million due to one-off gains included in the second half of FY22.
Underlying net profit also decreased 10 per cent (six per cent in CC) to $142 million, reflecting an increase in cloud computing-related expenses, new product launch costs and the impact of the weighting in operating expenses to the prior corresponding period.
Excluding its cloud computing-related expenses, Cochlear’s underlying profit margin would have been 17 per cent, which is just a touch below its long-term target of 18 per cent.
The Cochlear board decided to keep the interim dividend at $1.55 per share despite the company’s declining profits and the soundness of its balance sheet.
Meanwhile, Cochlear has reaffirmed its guidance for the remainder of the financial year.
The FY23 underlying net profit guidance range has been maintained at $290 million to $305 million, a five to 10 per cent increase on FY22 underlying net profit, and an increase of eight to 13 per cent when adjusted for the increase in cloud computing-related expenses.
Commenting on trading conditions, the management said, “Trading conditions have been progressively improving, in line with expectations, with intermittent COVID-related hospital or region-specific elective surgery restrictions or staffing shortages continuing.”
“While surgical and clinical capacity to serve implant candidates appears to have stabilised, we continue to be mindful of the pressure on the healthcare system globally to contend with surgical waiting lists, ongoing staffing challenges and growing demand.”
Cochlear said they will continue their investment in R&D and market growth activities to support long-term market growth.
