Key points
- Sales revenue increased 5% (6% in constant currency) to $1,170 million
- Underlying net profit increased 7% (1% in constant currency) to $205.5 million
- Interim dividend increased 8% to $2.15 per share
Full summary
Cochlear Ltd reported a 5% increase in sales revenue to $1,170 million and a 7% increase in underlying net profit to $205.5 million for the half year ended December 2024. Cochlear implant revenue increased 13% in constant currency, acoustic revenue increased 22% in constant currency, while services revenue declined 12% in constant currency. The company's balance sheet remains strong with net cash of $383 million, supporting an 8% increase in the interim dividend to $2.15 per share. Cochlear is preparing for the release of a number of new products, including its next generation cochlear implant and off-the-ear sound processor, which are expected to be commercially available from mid-2025. For FY25, the company expects underlying net profit to be at the lower end of the $410-430 million guidance range, incorporating a lower contribution from services revenue and higher cloud-related investment. Cochlear continues to see solid market growth rates and expects cochlear implant unit growth of around 10% in FY25, while services revenue is expected to decline in the single digits. The company is investing in R&D and market growth activities, as well as operating model redesign and core business systems upgrades, to support long-term market growth and its competitive position.
Guidance
For FY25, Cochlear expects underlying net profit to be at the lower end of the $410-430 million guidance range, incorporating a lower contribution from services revenue and higher cloud-related investment.
Outlook
Cochlear remains confident in the opportunity to grow its markets, with a significant, unmet and addressable clinical need for cochlear and acoustic implants expected to continue to underpin the long-term sustainable growth of the business. The company is well placed to create value for its stakeholders now and over the long term.