Cochlear posts 25% sales growth, lifts dividend
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The news: Hearing devices manufacturer Cochlear reported sales and profit growth for the six months to December 2023, having upgraded its full-year earnings guidance earlier this month.
The numbers: Sales revenue grew 25% year-on-year to $1.11 billion for the six month period, with sales from the company's cochlear implants up 26%. Statutory net profit lifted 35% to $191.4 million.
Cochlear reaffirmed its improved full-year underlying net profit guidance, now set at $385 million to $400 million, 26% to 31% higher than FY23. The medical device company declared an interim dividend of $2 per share, a 29% increase compared to the prior corresponding period.
Meanwhile, Cochlear paused its on-market share buyback — which has seen $73 million in shares repurchased since the scheme commenced in March 2023 — due to the current high interest rate environment.
The context: Earlier this month, the Sydney-based company upgraded its earnings guidance due to an expected 10% to 15% growth in its cochlear implant units for the financial year, compared to the high single-digit growth expected in August. Cochlear shares dipped recently after reports that sales of its implants could be impacted by Moderna's experimental mRNA vaccine against cytomegalovirus (CMV) infection — a virus which can cause childhood deafness.
The source: ASX announcement
