Hearing implant company Cochlear says it will continue to expand its business worldwide after shrugging off difficult global financial conditions to report a record profit.
The company, which operates in about 100 countries, says there will be ongoing demand for its products in both developed and emerging markets.
Cochlear’s net profit rose 16 per cent to $180.1 million for the 12 months to June 30, from $155.15 million a year earlier.
“We remain very pleased and excited about where Cochlear is from a financial results perspective but this really is a long-term journey and to me it’s about what we’re doing to build this business,” chief executive Chris Roberts told a media briefing on Tuesday.
He said the business was strengthened and readied for “ongoing growth” in the areas of technological innovation, further improvements in manufacturing and supply chain processes.
Dr Roberts said the company’s advanced bionics recall had “not given it a huge kick”.
“I wouldn’t overstate the impact,” he said.
He said the company had a $9.4 million positive cash position, which placed it on a sustainable footing.
Revenue increased 10 per cent to a record $809.6 million. But the result was not enough to prevent the stock being sold off as the All Ordinaries Index slumped to a two-year low before staging a remarkable turnaround on Tuesday.
Shares in Cochlear fell $1.03, or 1.5 per cent, to close at $65.00 while the broader market finished one per cent higher.
Despite this, Dr Roberts said Cochlear was well positioned for long-term sustainable growth and the outlook remained positive.
The popularity of Cochlear’s hearing implants was the greatest among older patients in developed countries and among infants and young children in undeveloped countries.
“I don’t see that changing anytime soon,” Dr Roberts said in the briefing.
Implant sales rose 17 per cent to 24,661 as the company continued to expand globally, setting up a subsidiary company in Panama to support distribution in Latin America. Full year distribution began in India, too.
“This result was achieved in difficult global financial conditions and highlights the multiple growth drivers the business delivers across products and geographical spread,” Dr Roberts said.
Cochlear declared a final dividend of $1.20 per share, 70 per cent franked, compared with the $1.05, 60 per cent franked, paid a year earlier.
