Cochlear, a leading ASX-listed company known for its innovative hearing implants, announced a significant increase in its dividend following a remarkable 35% surge in first-half profit driven by robust sales.
Financial Performance Overview
The company raised its payout for the December half to A$2.00 from A$1.55 a year earlier, reflecting its strong financial performance. Cochlear reported an underlying net profit of A$191.8 million on sales revenue of A$1.11 billion, demonstrating a 25% revenue growth compared to the previous year.
Analysts had initially projected an underlying net profit of A$180.4 million on sales revenue of A$1.08 billion, but Cochlear exceeded these expectations based on unaudited accounts issued on Feb. 8.
Positive Growth Forecast
Cochlear reiterated its annual guidance for the fiscal year 2024, expecting an underlying net profit in the range of A$385 million to A$400 million. This forecast led to a 5.9% increase in the average analyst prediction for full-year net profit and a 3.1% rise in revenue forecasts.
"We expect profit growth to be driven by a combination of revenue growth and improved net profit margin," stated Cochlear.
Market Share and Growth Prospects
The company maintained its market share gains while experiencing strong industry growth across various patient age segments in both developed and emerging markets. Cochlear anticipates a 10-15% growth in cochlear implant unit sales for the full fiscal year, surpassing previous estimates.
With its legacy of innovation dating back to the development of the world's first hearing implant, Cochlear remains confident in its long-term growth prospects. The company highlighted the unmet clinical need for cochlear and acoustic implants, indicating a positive trajectory for future growth.
Continued Momentum
Cochlear reported sustained momentum going into the second half of the fiscal year, with adult referral rates improving in several developed countries. The company's commitment to driving innovation and meeting critical clinical needs positions it well for continued success in the global market.
While reflecting on Cochlear's impressive performance, it is evident that the company's dedication to excellence and innovation remains unwavering.
Contact Stuart Condie for more information.
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