Cochlear forecasts FY NPAT growth of 15%
Cochlear Limited (COH) announced an 8% jump in first half NPAT to a better than expected $75.2 million as the successful launch of a new products resulted in an increase in unit sales. The hearing implant company also forecast FY10 profit growth of at least 15% ahead of the previous year.
The company said its interim dividend was up 19% to 95c, while revenue dropped 2% in the first to $347.6 million compared to the previous corresponding period.
Excluding FX contracts, Cochlear said sales decreased 3% to $336.9 million.
The company reported a 7% rise in cochlear implant unit sales to 9,811 units, while installed base sales declined 29% as the focus of the Nucleus 5 launch was on complete system sales not upgrades.
CEO, Dr Chris Roberts, said the result was helped by the successful launch of the new Cochlear Baha BP100 sound processor and the next generation cochlear implant system, Cochlear Nucleus 5.
Baha sales of $46.4 million grew 10% in constant currency and 1% in reported currency.
“With the launch of the new products and financial discipline around operating expenses, operating margins expanded, with EBIT of $107.3 million being 31% of revenue compared to 28% for H1 F09,” Dr Roberts said.
“Free cash flow for the half year of $89 million was a record and net debt excluding the headquarters building program was reduced by $29.7 million to $69.0 million.”
Meanwhile, Cochlear said cash from operating activities was up 42% to a record $85.4 million and free cash flow of $89 million was up 149%.
As at 1036 AEDT, Cochlear shares were up $2.46 to $63.85.
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